Duco for Insurance

As data flows between systems, enrichment and modifications can allow errors to creep in and propagate across your business. Reconciling this data can be a time consuming and manual process, introducing significant operational risk and limiting your ability to manage change effectively.

Between claims and risk reporting, reinsurers, coverholders and other delegated authorities have to manage thousands of bordereaux reports. Multiple checks are required throughout the process, but manual checks and workarounds are often used to manage complexity and patchy data quality. Getting it wrong can impact everything from claims payments to risk management.

The number of systems and data formats involved in the process can make timely claims payments challenging. Manual workarounds are often used to overcome the lack of standardisation, but these slow down the process and add to total cost per claim. These same data problems and manual processes make payment matching – both premiums and claims – even more of a challenge.

Cash reconciliations are a vital and mandatory control. They receive high levels of scrutiny from regulators, and touch almost every area of your operations department. And the nature of them means they require complicated investigations and loads of manual work between multiple systems and stakeholders to identify the root causes of breaks.

Trading sheets, sub-ledgers, bank statements, and manual entries all have different formats, presenting challenges for balance sheet substantiation. Ensuring accurate consolidated reconciliation can be a challenge when you’re using inflexible legacy technology, or worse, manual spreadsheet reconciliations as a workaround.

Transaction data needs to be accurate, complete and timely, validated with post-reporting reconciliations. And with refits, rewrites and updates on regulations around the world, you need to ensure the flexibility to adapt those reconciliations when you need to.

The risk reporting environment is growing in complexity. In addition to the challenges around risk reporting methods in annual reports, regulations like BCBS 239 and others require timely, accurate and granular reporting of risk data in specific formats. Organisations need to be flexible and adaptable to respond to changing data requirements as well as to changes to the regulations themselves.

Risk teams are busier than ever in the face of a fast-changing business landscape. As processes, systems and activities shift, the complexity associated with compiling, normalising and reconciling risk data continues to increase. Having confidence in your risk exposure and financial health at all times, across all areas of risk, is vital but to do this your teams must deal with large volumes of highly complex data, drawn from disparate sources, in varying file formats.

When migrating between old and new systems, you need to ensure that your data remains accurate and complete. But frequently, errors can creep in, particularly if you are relying on spreadsheets and existing platforms. Bad data frequently doesn’t show itself until late in the process, when it can have the biggest impact.

Without trustworthy, complete and consistent reference data, errors creep into processes across the business and create mayhem down stream. Reference data impacts nearly every other reconciliation and data management activity your business does. So how do you ensure it’s right?