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Insurance Transaction and Reserving Cycle
Insurance companies that write annuties, structured settlements and other forms
of investment type contracts often face challenges balancing actuarial reserve valuations
and interest credited calculations to amounts reflected in the financial statements.
Timing differences between when an insurance premium or benefit is recorded
and when the reserve impact of that transaction is recorded are a common cause. Accounting
entries from multiple policyholder administration systems, claims systems and reserve valuation
systems can make the task of unraveling these variances complicated. SubLedger Plus
offers a streamlined approach for balancing your general ledger to your reserve
valuation systems and ensuring proper matching of premiums and benefits and reserve
changes.
SubLedger Plus:
- Maintains general ledger reconciled inventories of premiums, benefits, insurance reserves, benefits in course of settlement, charges,
and interest credited at a policyholder level.
- Reconciles cash account balances to bank account balances.
- Reconciles depository clearing accounts to your policyholder administration system's
cash with application suspense balances.
- Rolls forward reserve valuations at a policyholder level
and detects variances
that cause out of balances with the general ledger (opening reserve balance + premiums - benefits - charges + interest credited = closing reserve balance)
- Detects policyholder level interest credited analytical review variances.
- Detects large fluctuations in the policyholder level relationships of GAAP and STAT valuations.
- Standardizes accounting rules and automates journal entry
creation from valuation
sources.
- Routes exceptions like roll forward variances, analytical review variances, and
reconciling items to accountants using integegrated workflow.
- Provides a robust Accounting Workbench to research and correct exceptions.
- Creates general ledger reconciled reports and analytics.
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