Baseline Delta Approach in Insurance/Reinsurance Industries:
- The paradigm shift in Actuarial techniques to explicit project cashflows has resulted in the necessity to process vast amounts of Cashflow Data. With S4HANA FPSL solution, this is now a possibility.
- The Baseline Delta Approach enables a consistent presentation of the Financial Statements of an Insurer irrespective of the Accounting Standards used.
- With Multi-GAAP Accounting being the order of the day, there is a never-before need to process lot of financial information. Adding complexity to the quagmire is the necessity to process data faster in order to have shorter closing process.
- Using Baseline Delta Approach a common baseline is determined for all valuations and delta specific to a valuation is also determined.
- This enables a concurrent closing process in which the Baseline is booked first which is followed by the deltas for the respective valuations.
- In a nut-shell Baseline Delta Approach prepares financial statements across multiple GAAPs consistently and concurrently.