Published on November 8, 2023, 11:11 pm

Tugure, one of the leading reinsurance companies in Southeast Asia, has chosen SAS to comply with the PSAK 74 standard for the local insurance industry. The new standard, which will go into effect in January 2025, is based on the International Financial Reporting Standard (IFRS) 17 and aims to enhance transparency and comparability in financial reporting.

Under IFRS 17 and PSAK 74, insurance premium income will now be considered obligations instead of immediate profit. This change will require local insurers to overhaul their accounting standards and processes, introducing complexities and rigorous calculations and reporting.

Meeting this new reporting standard nearly three years in advance gives Tugure a competitive edge. Dradjat Irwansyah, the finance director at Tugure, believes that having a smooth transition to PSAK 74 will enable them to serve customers better. He expressed confidence in SAS as the right partner for this transition.

Established in 1987, Tugure initially served the insurance needs of Tugu Group but has expanded its scope to cover other insurance companies due to the rapid growth of the insurance industry in Indonesia. Tugure specializes in providing reinsurance services against risks faced by general insurance companies and life insurance companies. Over time, Tugure has gained the confidence of both national and international players in the insurance industry.

SAS’s IFRS 17 solution is widely used by many insurance companies overseas. It supports users with various tasks such as data management, cash flow calculations, contractual service margins (CSM), journal entries, and disclosure reporting. By leveraging this solution, local insurers can benefit from a thorough and robust alternative to customized solutions. This not only generates savings in terms of financial costs but also reduces work-hour costs while ensuring compliance agility well before PSAK 74 comes into force.

Febrianto Siboro, managing director of SAS Institute Indonesia, emphasizes that integrating key IFRS 17 capabilities can help insurers protect their investments in actuarial, accounting, and related solutions. From data orchestration and analytics to risk and profitability reporting, SAS enables organizations to stay ahead of IFRS 17 requirements for compliance without losing visibility.

With SAS’s solution, local insurers no longer need to spend more than necessary or cause delays in PSAK 74 compliance. The customised solution offered by SAS significantly reduces the computational burden that comes with new reporting guidelines.

In conclusion, Tugure’s decision to partner with SAS for PSAK 74 compliance positions them well ahead of the deadline. This move reflects their commitment to serving customers better and embracing industry changes proactively. By leveraging SAS’s expertise in insurance solutions and complying with the new reporting standard early on, Tugure demonstrates its dedication to transparency and comparability in financial reporting within the Indonesian insurance industry.

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