Unified Reinsurance Operations Give Fortune 500 Insurer Better Data Visibility
THE CHALLENGE
Decentralized reinsurance created data silos
A top Fortune 500 insurer took a decentralized approach to reinsurance. Several companies operated independently and managed their reinsurance individually within the larger corporate umbrella. A model that led to inconsistencies in data handling and reporting, in part, because individual instances of the main reinsurance system, Freedom Reinsurance System (FRS), had unique setup and data feeds across different companies.
Decentralization deprived the organization of a single, unified view of all its reinsurance data, which was critical for tracking and reporting premiums and losses, especially where multi-company contributions towards reinsurance contracts were involved. It also resulted in inefficiencies, redundancies, and operational burdens.
BUSINESS NEED
Centralizing reinsurance operations and data management
Their current business model led to data silos and redundancies in the system, which in turn resulted in inaccurate reporting, especially in scenarios involving multi-company contributions towards reinsurance treaties.
THE SOLUTION
Consolidating reinsurance operations and streamlining data management for a unified view
OZ Digital Consulting was tapped to help transform their purchasing and processing of reinsurance contracts. To achieve this, we first set about centralizing the reinsurance function in order to consolidate and streamline their financial processes. In doing so, we were able to reduce redundancies, improve analytics and get better visibility into whether the reinsurance treaties were profitable.
We implemented a centralized data warehouse (CDW), transitioning from FRS to XLPro for data management. The transition allowed for a more standardized data feed from a CDW to XLPro that enabled the centralized reinsurance system to process gross data and generate ceded entries for reinsurance transactions.
Automated bots were also developed, as part of the solution, to translate existing reinsurance contracts from individual FRS instances into the standardized XLPro database. This helped centralize the management of reinsurance treaties and contracts, allowing for accurate tracking and reporting of premiums and losses.
IMPACT
Better tracking, accurate analytics and reporting, and lower operational costs
We helped the client move from a scattered reinsurance function to a more unified and streamlined reinsurance management system. While immediate operational and reporting needs were addressed, it also laid the groundwork for better analytics and reporting.
By centralizing reinsurance, we were able to:
• Reduce redundancies that arose from managing individual FRS instances, lower operational costs, and streamline processes
• Increase the accuracy in tracking and reporting reinsurance transactions. The robust analytical reports developed as part of this project provides valuable insights into the profitability of reinsurance treaties across the organization
• Ease the audit process and ensure financial accuracy through the automation of generating and approving General Ledger entries pertaining to reinsurance transactions
