Reserves are calculated. The bottleneck is detecting deviations in time and meeting IFRS 17 without paralysing the actuarial team.

Technical reserves represent 60 to 80 per cent of an insurer's balance sheet. A 1 per cent error on an EUR 5,000M portfolio means a EUR 50M direct P&L impact. IFRS 17 requires frequent recalculation of the CSM (Contractual Service Margin) and the risk adjustment, multiplying the actuarial workload. Teams manage multiple portfolios in parallel with immovable quarterly close deadlines. Late detection of adverse development turns actuarial surprises into earnings crises.

McKinsey, CLARA Analytics, Akur8