Unlike other industries, the finance and accounting function in the insurance industry lacks robust, customized accounting technology to cater to its needs. Insurtech solutions can deliver superior business outcomes while addressing extant challenges faced by insurance CFOs.
In contrast to related industries such as financial services and banking, the insurance industry has been lagging in leveraging intelligent technologies, deploying leading off-the-shelf accounting solutions, and implementing augmented AI, machine learning, or cloud technology-based solutions. Reliance on legacy paper-based processes and manual GL operations creates several challenges, including delays, limited data visibility, poor decision support, and risk of knowledge leakage. Global expansion requires multi-currency accounting and location-specific adaptability. Additionally, there is a need for comprehensive insights on the relevant market or peer companies, quick response when faced with compliance-related issues, increased data visibility, and customized automated reporting to facilitate strategic decision-making.
Several breakthroughs in insurtech solutions can help augment processes, enhance efficiency, and address the challenges faced by CFOs. Blockchain-based platforms can streamline processes across the insurance lifecycle, aid with managing re/insurers’ financial and technical accounting, enable net or direct settlement, and support accounting and settlement documentation. Cloud-based platforms allow collaborative, dynamic, and intelligent planning while connecting data, people, and plans to facilitate real-time planning, reporting, and decision making. Further, cloud-based APIs can help insurers achieve frictionless information sharing by breaking down data silos.
The F&A function should transition to hyper granular reporting and end-to-end processing platforms by capitalizing on transformational technologies. This will create significant functional and operational efficiencies, deliver actionable insights, inform future business planning and expansion initiatives, and enable data-driven decision making.
