What modern financial planning and analysis teams do differently — and why it matters

Author: Masimba Zata, Director - Insurance Product Management, Moody's

 

“Eighty-eight percent of all spreadsheets contain errors, and nearly 50% of large companies have suffered financial losses due to spreadsheet mistakes.”

— Ray Panko, University of Hawaii

 

The hidden cost of “good enough”

With economic volatility and regulatory complexity, especially under IFRS 17, “good enough” is no longer good enough. Spreadsheets dominate financial planning and analysis (FP&A) in insurance, and for good reason—they’re familiar, flexible, and deeply embedded. However, as the pace of change accelerates and demands grow, cracks start to appear.

The complexity and granularity of IFRS 17 calculations extend far beyond financial reporting, which affects planning, risk management, and investment strategy. This means FP&A teams now manage multiple projections while striving to maintain consistency across functions and governance over increasingly granular data.

For insurance leaders, the real cost of legacy FP&A tools isn’t just inefficiency, but missed opportunity. Time spent on reconciling data or version control management issues is time not spent on strategic insight, scenario planning, or capital optimization. In today’s environment, that’s a cost insurers can’t afford.

High-performing FP&A teams recognize this. They’re not just digitizing—they’re transforming, rethinking how they work, collaborate, and deliver value.

 

The strategic shift from reporting to business partnering

FP&A is evolving. No longer confined to retrospective reporting, today’s finance teams provide forward-looking insight, challenge assumptions, and shape business strategy.

This shift requires more than new tools—it demands a new mindset. Top-achieving teams move beyond planning and budgeting to focus on influence and impact. They embed themselves in decision-making conversations, not just reporting outcomes.

To do this effectively, FP&A teams require timely, trusted data. They need to model scenarios quickly and confidently, and they need to speak the same language as their peers in risk, actuarial, and strategy functions.

 

Why spreadsheets are holding you back

Spreadsheets have their place for quick calculations, exploratory analysis, and one-off models, but as a foundation for enterprise forecasting, they fall short.

The increased granularity of IFRS 17 data demands stronger governance and control frameworks. Manual processes introduce risk; a single formula error can ripple through a forecast, and version control becomes a guessing game. Collaboration is clunky, especially across distributed teams.

More importantly, spreadsheets can’t scale. They weren’t built to handle the volume, complexity, and governance requirements of modern insurance finance, nor were they designed to support the cross-functional alignment that today’s regulatory and strategic landscape demands. Are we making multimillion-dollar decisions on tools built for 1995?

High-performing FP&A teams are transitioning to cloud-enabled, governed platforms that offer:

• Automated data ingestion and validation
• Real-time collaboration with full audit trails
• Role-based access and enterprise-grade security
• Integration with actuarial, risk, and general ledger systems

This isn’t just about efficiency—it’s about promoting a fundamentally different way of working.

 

Finance and risk: Speaking the same language

Modernizing FP&A aligns finance and risk functions around a shared view of the business, and consistency in assumptions, data models, and methodologies is essential under IFRS 17 and similar frameworks. Finance and risk teams must collaborate closely to make sure forecasts, capital plans, and regulatory reports are coherent and defensible.

By using integrated platforms and working from the same data foundation, teams can:

• Run joint scenario analyses and stress tests
• Align on key drivers of profitability and risk
• Respond quickly to emerging threats or opportunities

This alignment improves compliance and enhances strategic agility. When finance and risk speak the same language, the business moves with greater confidence.

 

Unlocking actionable insights in insurance finance

We need faster reporting and better decisions, which means turning data into insight.

Advanced analytics and automation are key enablers to:

• Detect trends and anomalies early
• Forecast with greater precision
• Model the impact of external shocks or internal changes
• Track performance against strategic key performance indicators (KPIs) in real time

Predictive analytics can help anticipate claims volatility, while machine learning models identify emerging risk exposures. Automation helps deliver these insights consistently and at speed without the bottlenecks of manual processing.

This responsiveness is critical in insurance, where market dynamics, regulatory expectations, and customer behaviors are constantly shifting.

 

What high-performing FP&A teams do differently

Exceptional FP&A teams share common traits:

• They invest in platforms purpose-built for enterprise forecasting, rather than relying on retrofitted spreadsheets.
• They integrate finance with risk, actuarial, and strategy functions to create a unified view of performance.
• They automate routine tasks to focus on strategic thinking.
• They prioritize governance, auditability, and data integrity.
• They focus on delivering insight that drives business value.

These teams are more efficient and influential, helping their organizations navigate uncertainty, allocate capital effectively, and make smarter, faster decisions.

 

The future of FP&A is integrated and insight-driven

The insurance industry is at an inflection point. Regulatory change, economic volatility, and digital disruption are reshaping the landscape. In this environment, the ability to plan, forecast, and respond with agility is a strategic imperative.

The question isn’t whether to modernize but how quickly you can lead the change.

 

Related articles on this subject: How can IFRS 17 help drive strategic financial planning?

Want to learn more about how to turn IFRS 17 into a strategic advantage? Moody’s is a proven leader in IFRS 17 solutions, with extensive experience in addressing regulatory requirements and driving business insights. Speak to a member of the team today or visit our IFRS 17 website.