Optimise your insurance workflows with highly capable and efficient FP&A
There are few industries that require the level of data precision and accuracy that insurance does. Insurance providers rely on highly sophisticated planning and analysis to manage various risk profiles and still maintain the margins they need to be sustainable. The only way to achieve this over the long term is to utilise a powerful Financial Planning & Analysis (FP&A) solution that can harness the complexity of your client base and tie it into your strategic planning.
That’s what we do here at Cubewise. We’re ready and willing to help.
Common challenges
Cash flow planning
In insurance, cash flow planning is exceedingly complex and prone to miscalculations if planning capabilities are lacking.
Accrual complexities
Insurance companies are always managing the balance between accruals and cash flow in an attempt to manage their risk profile while still operating their business. This can be extremely complex and can have profound consequences if done wrong. Without the right tools to assist, this complexity can be overwhelming.
Phasing issues
When complexity isn’t managed effectively, you run into phasing problems where the recognition of premiums and any outbound commissions don’t align. This can cause a cash flow crunch that necessitates further borrowing, or a situation in which a conservative asset management approach stymies growth. Insurance companies need to be across the detail if they’re to move the needle.
Powerful planning
Cubewise and IBM Planning Analytics / TM1 offer a fully comprehensive FP&A suite that can be completely customised for your insurance needs. Bring all your data into one place and benefit from a unified planning methodology that can assess things from a variety of perspectives. These insights are invaluable for planning where the business is going and for managing risk appropriately.
Claims calculations
Calculating claims, Incurred but not Reported (IBNR) estimates, payments and the like requires a powerful technological foundation that can harness inherent complexities and not be overrun by them.
Calculating IBNR
Calculating claims incurred but not reported can be a nervy task, especially when you consider their importance for an insurance provider. It requires a good understanding of key data and advanced risk management processes to cover your bases without slowing down growth. Insurance organisations who don’t do this effectively are one disaster away from irrelevance.
Mismanagement of the loss ratio
Poor planning and calculations can lead to your loss ratio being mismanaged – something that can cripple a business. Companies need advanced technology to mitigate against this and enable truly holistic and nuanced forward planning. In addition, the technology used needs to remain agile and flexible to changing business circumstances if it is to provide accurate insights.
Advanced scenario planning
Cubewise and IBM Planning Analytics / TM1 offer highly advanced scenario planning capabilities that not only ingest your key data from a variety of sources, but also allow you to build various situations based on selected parameters to see how your business performs. This planning enables better foresight into the risks an insurance company faces and allows for more precise contingency plans to be put in place.
Regulatory reporting
The insurance industry comes with an entirely unique set of regulatory reporting requirements that must be satisfied on an ongoing basis.
Siloed reporting
For many insurance companies, financial and regulatory reporting has to be kept separate due to their unique characteristics and the challenges associated with them. This means running multiple reporting projects in parallel, passing data back and forth between them in order to achieve compliance.
Duplicated effort
When your financial and regulatory reporting are not working from a single source of truth, you duplicate efforts and resources that you shouldn’t be. This places additional pressure on your reporting team and wastes valuable time that could be better spent elsewhere. In addition, it opens the door to errors because data is housed in different places.
Single source of truth
Cubewise and IBM Planning Analytics / TM1 offer a single source of truth that can manage all your reporting requirements in one system. With just a few clicks you can see your data in a multitude of different ways, switching between International Financial Reporting Standards (IFRS), management reporting and regulatory reporting. This eliminates the need for parallel processes and frees up resources to focus on higher-value tasks.
Supercharge your insurance data’s precision and accuracy
Insurance providers must be on top of their data if they’re to make smart and insightful decisions. Here at Cubewise, we help insurance companies leverage the power of IBM Planning Analytics / TM1 to build a sophisticated and nuanced FP&A system that can not only handle the complexities of reporting but provide insurers with the planning functionality they need to make truly data-backed decisions.
It’s time to take your organisation to the next level and unlock the power in your data by harnessing its complexity. We can help.
Talk to us today and let’s overcome the challenge together.
When a system is unable to adapt to changing business circumstances, it can be tremendously frustrating for all who work with it. Things must go on, of course, and so users will resort to building tedious workarounds, simplifications and shortcuts that only serve to kick the can down the road.
Don’t accept that your business processes are incapable of adapting to fast-moving market changes. Contact us to find out how easy it can be to implement efficient and practical planning, reporting and forecasting workflows.
