Insurer transforms financial close and reporting processes, reducing costs by 75%.
the challenge
With multiple acquisitions over the last three decades and with thousands of staff in multiple offices around the world, this company’s growth had created a financial accounting landscape comprising a range of disparate data sources, processes, controls and reporting methods.
With no central data warehouse, data was stored in multiple source systems. This meant that people and resources were preoccupied with manually intensive data collection, recording and reporting – processes which became increasingly onerous as regulatory and statutory reporting requirements placed ever greater demands on the business.
the result
Phinsys was utilized to develop a single source of truth: a reliable data model that supports Enterprise wide Group, Entity Regulatory and various Statutory reporting requirements. Implementation of a consistent and accurate financial close process enabled the efficient use of resources and reduced operating expenses.
Consolidated reporting across the entire portfolio including PRA and Lloyd’s Solvency II Pillar 3, UK & USGAAP down from 20 days to S days. Overall 85% reduction in effort to run regulatory reporting after the close of statutory books. No time lag needed between production of management and regulatory reports
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“The implementation of the Phinsys Platform has allowed us to deliver results to our business partners in months instead of years.”
“We’ve been able to create a single source of truth and standardise the processes for our financial and actuarial insurance accounting. Fast, accurate automation has reduced manual processing, eliminated the need to increase headcount and lowered operating costs.”
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Global Insurer consolidates three international operations into a consolidated financial close.
the challenge
This company’s growth had resulted both in the purchase and creation of local insurance subsidiaries. These subsidiaries had their own local regulatory reporting requirements and accounting standards. However, the company still needed to consolidate all results to a corporate US GAAP equivalent. Their technology landscape evolved to have a separate data warehouse and financial systems purchased specifically to support these local subsidiaries.
Due to the variations in accounting standards between the US GAAP parent and local entity reporting, the finance team spent a significant amount of resource balancing financial statements between group companies.
the result
A consolidated USGAAP financial result could now be produced simultaneously along with local reporting requirements which utilized different earnings patterns and calendar closing dates. This provided a clear an auditable ability to tie complex group results together.
Three local reporting platforms were sunset resulting in a $750K annual savings to the company.
Staff resources previously allocated to performing inter-company reconciliations were reassigned to other analytical functions providing value to the organization.
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“By implementing the Phinsys Product Suite – we have been able to sunset three local reporting platforms. This has reduced our IT costs for these operations and allowed them to reinvest in other technology solutions to grow their business.”
“We have been able to achieve a significant reduction in the finance team assigned to performing inter-company reconciliations. The streamlined process has made audit reviews a simple exercise.”
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Insurer consolidates all data sources into consolidated insurance data warehouse.
the challenge
A diverse and complex insurance organization leveraged an existing data warehouse that did not include all its required data sources. The age and complexity of their data warehouse made it very difficult to add new sources of data attributes.
A highly manual process thus evolved to combine data from the existing data warehouse with multiple other data sources across the enterprise.
Both financial closing timelines and the ability to efficiently pull together accurate and reliable management information was impacted by their legacy systems architecture.
the result
Phinsys built a one-time feed from the existing data warehouse environment to the new consolidated Phinsys insurance data warehouse. Data sources previously consolidated manually, whether they were bordereau, other source systems or Excel spreadsheets, were then automated and loaded into the Phinsys warehouse. A centralized single source of insurance data has enabled this insurer to reduce closing cycles by 5 days with a higher confidence level in the quality of the data.
Staff previously assigned to consolidating data sources were instead retrained to leverage this data via new business intelligence solutions.
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“Routing new data sources to the Phinsys data warehouse has given our team the ability to address technical debt within our existing architecture.”
“Our prior close process was highly manual and worsened as the business expanded – we now have a scalable solution that has allowed us to reduce close cycles and feel comfortable with the process that produces our financial results.”
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Managing General Agent aspires to become a full stack insurance Carrier.
the challenge
Many Managing General Agents (MGA’s) in today’s evolving InsureTech landscape aspire to become a full stack insurance company. Some also enable start-ups by allowing them use of their technology platform and distribution network to develop new and innovative insurance products.
This MGA needed a complete data warehouse specifically designed for a full stack insurance company, while also supporting the unique requirements of an MGA and Carrier relationship.
The data warehouse needed to take data from both a pricing and policy issuance system as well as distributed ledger that managed cash settlements.
the result
Phinsys implemented an insurance data warehouse that supports current and future regulatory and statutory needs within a three-month project schedule.
This MGA can now run full earnings based carrier P&L statements to model their insurance results as well as standard MGA accounts, all from the same source data.
Data easily and reliably produced from the Phinsys platform was recently utilized during investment discussions to explore a host of growth and investment opportunities
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“A multi-year data warehouse project has allowed the re-allocation of existing resources to other products providing immediate benefits to stakeholders.”
“By implementing the Phinsys product suite we can now model full product statutory results as if we were an insurance carrier. Building a reliable and valuable data source for future opportunities has allowed us to properly structure carrier agreements by balancing up front commission rates with longer term profit commission incentives”.
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