Insusurance Finance Transformation

1. Overview  

During the past few years, the pressures on insurance finance operations have grown exponentially. Clearly increasing regulation and tax changes are one dimension, but COVID, global warming/ESG and the energy crisis are other dimensions that each has an impact. Additionally, digitisation has radically transformed the customer journey in insurance. Customer Engagement, Claims and Underwriting processes have been automated and streamlined using new technologies such as Machine Learning, Satellite Data, Blockchain etc. However, there has been little or no investment in the finance/actuarial domain.  

The C-suite is now looking to the CFO to drive automation in the accounting arena and deliver consistent data for regulatory reporting and decision making but, many CFOs are finding they are unable to meet these business expectations with the current legacy finance/actuarial systems and processes. Thus, some form of Finance Transformation is now inevitable.

Regulatory Requirements are Growing

Regulation though, is a major contributor to complexity and IFRS 17 (which is a fundamental change to insurance profit and revenue) is latest in a long line of legislation following from Solvency II, IFRS 9, and of course ESG. IFRS 17, places added burden on Finance as it changes many of the key metrics in the insurance business such as profit, revenue, COR, reinsurance etc… and, is interrelated with Solvency II. 

Insurers are subject to complex regulatory reporting requirements. Hundreds of thousands of data points must be reported in an increasingly onerous template-based reporting system that is pushing an already weakened financial sector to the precipice These fillings have to be generated from multiple operational systems and must be submitted to the regulator in a specific XBRL taxonomy as prescribed by the regulator.

Insurers have typically approached each new set of regulation as a separate initiative, tactically with its own data, systems, and processes. The result is a series of regulatory “layers” with little consistency in approach or integration. This also complicates matters in terms of planning and forecasting as multiple feeds are required, one for each regulatory lens, consolidating and comparing with potential inconsistencies in underlying source data causing problems.  

The final complexity is the fact that many insurers operate on a siloed basis with divisions on a company or line of business basis often exacerbated by acquisitions. Invariably this has resulted in siloed accounting and reporting systems and processes – as illustrated below: 

Banks
Insurance
Pension Funds
Asset Managers

Challenged by siloed solutions impeding streamlined workflow and collaboration, banks are seeing regulatory expenses balloon, both in terms of TCO associated with tools, but more importantly the resources required for error correction, growing data volumes, maintaining consistency, providing adequate audit trails, lineage, legacy tools lock-in, and lack of adequte analytics.

Regscape’s Regulatory Gateway will allow centralized monitoring of the closing processes, and provide a collaborative framework to work across teams during the closing, including emails, comments, tasks management, centralized closing monitoring, governance and risk compliance.

Note please split in 2 columns with seperator ->  mooie aligntmen van de text 

• XBRL -> Loading, generation and validation across taxonomies
• Collaboration – process workflow and monitor, share analytics and calculations
• Central storage/archiving -> XBRL storage and compare
• Validations -> guided validation & issue resolution
• Picture perfect form review
• Form based data entry/corrections and form calculations
• Interconnectivity -> disparate operating models
• Embedded analytics -> pre-built and self-service
• Extensive connectivity (DB, DWH, csv/xml/json,xls)
• Built-in lineage/ audit trail -> stores data points across transformations
• Built-in reconciliation -> GL vs transactional, subledger, engines
  

Regscape provides banks with an immediate analytics overview of their XBRL filings, which can be simply uploaded to obtain 100s of pre-built dashboards and forms, outlier detection, like for like benchmarking, consistency and validations.

When adding the Regscape Connector to the bank’s calculations and XBRL engine, Regscape provides full lineage to calculation engines, datawarehouse, GL and transactional systems.

Regscape’s ESG platform for banks provides for data capture, either through template data entry or through external ESG data load, ESG assessments, integration with transactional data, ESG report generation (regulatory) and as a corporate.

CHALLENGE

Insurance companies are also challenged by siloed solutions impeding streamlined workflow and collaboration, tool vendor lock-in, difficulties in incorporating actuarial expertise without resorting to manual interventions and spreadsheets, weak or absent audit trail, data sourcing issues, costly resources going into work and re-work, and the always present timeline pressure.

SOLUTIONS

Regscape’s Regulatory Gateway for Insurance provides centralized monitoring of the closing processes, and provide a collaborative framework to work across teams during the closing, including emails, comments, tasks management, centralized closing monitoring, governance and risk compliance.

• Built-in lineage -> stores data points across transformations
• Built-in reconciliation -> GL vs transactional, subledger, engines
• XBRL -> generation and validation across taxonomies
• Central storage -> data modifications, manual entries
• Interconnectivity -> disparate operating models 
  COPY FROM BANKING!!!

Regscape provides insurance companies with easily accessible analytics across their XBRL filings, including rich pre-built dashboards and forms, outlier detection, like for like benchmarking, consistency and validations.
The platform can link to actuarial systems and automatically process large amounts of asset details from providers and asset managers.

CHALLENGE

Pension funds are also challenged by siloed solutions impeding streamlined workflow and collaboration, tool vendor lock-in, difficulties in incorporating actuarial expertise without resorting to manual interventions and spreadsheets, weak or absent audit trail, data sourcing issues, costly resources going into work and re-work, and the always present timeline pressure.

SOLUTIONS

Regscape allows Pension Funds to easily upload their XBRL filings and get immeidate access to rich pre-built dashboards and forms, outlier detection, like for like, benchmarking, consistency and validations.
The platform can be connected to actuarial systems to integrate actuarial inputs into the programmatic workflow.

Regscape’s ESG platform for pension funds provides for ESG data capture, external ESG data loads, ESG assessments, integration with transactional data, ESG report generation (regulatory) and as a corporate.

• Validate instances during processing and error correction
• XBRL processing on form / template level, or transactional data
• Load XBRL for analytics and reporting
• Generate XBRL instance from template or transactional data