A major insurance organization with operations in North America was rapidly growing its business in other continents. Its challenges included lack of procedural standardization across regions; manual processes for premium collection, invoicing, matching, and reconciliation; lack of integration and automation; disparate broker payment systems and collection channels; fragmented visibility and access to customer data; long manual turnarounds for receivables matching and reconciliations; keeping pace with global growth and new lines of businesses.
Throughout the expansion, the insurer wanted to improve its credit control processes to:
First, we assembled members from our finance, IT, and enhancement teams with deep, functional understanding and experience in credit control, as well as the ability to develop the necessary tools. Then we created a phased approach to better manage and accomplish the objectives of the engagement:
- Diagnose the “as-is” state to understand the workflows and technology
- Create basic process documents — maps, L1-L4 activities, and a process tree to validate understanding
- Identify opportunities and design ways to drive operational synergy and automation
- Design the IT solution — document functional and technical specifications
- Work with relevant stakeholders (operations, technology, and other departments) to implement the solution and to ensure the proper pilot and stabilization period
We prioritized teams by geographic region and function and aligned SMEs to understand and deliver on regional nuances. This helped us identify opportunities for standardization. We collaborated with the Bound team to leverage its data to auto-generate invoices and remove duplicate efforts. We created a global collection escalation matrix at the policy level to ensure thorough collections processing. We also created global dashboards to show aged debts and unmatched cash across regions in USD, along with month-to-month comparisons, to increase accountability and drive results. We mapped all of our processes to identify activities that added no value and automated the ones that did. And we implemented a knowledge-management matrix to ensure cross-functional training and to establish process- competency metrics.
To allow the insurer to meaningfully assess our performance and the outcomes of the project, we applied these evaluative metrics to the project and its results:
Faster invoicing, resulting in faster revenue collection
Greater control of accounts receivable
Scalability across geographic regions and lines of business
And we achieved the following results:
- 95% of all invoices were generated within 24 hours of binding
- 89% of all premiums were collected within 30 days of being due
- 98% of incoming cash was applied within 24 hours of the value date
- 150% volume growth achieved in 2017 with same FTE count as 2016
- Turnaround time was reduced from 45 days to 12 days to book straight-through-process accounts
- Turnaround time was reduced from 12 days to 5 days for cash calls
- Working capital was generated with activities like Not in ledger, Stale reserve reduction, etc.
VOICE OF THE CUSTOMER
With expert help from Xceedance, we implemented an invoicing system that meets our needs today and into the future. The Xceedance credit control team continues to exceed the expectations of our organization. You’ve been exceeding expectations for the whole group! Thank you again.
Vice President – Finance, North America Operations of a Global Carrier
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