Xceedance revamped the underwriting accounting workflows for a global P&C insurer, including the processes governing accounting entries in the general ledger, facilitating strict compliance with the applicable financial and regulatory framework.
The insurer required that underwriting journal entries be generated at the policy level in addition to the general ledger account level. Underwriting journal entries were created manually, and there was a lack of tools to quantify unearned premium, deferred acquisition cost, and reinsurance ceded portion. Additionally, actuarial team members lacked access to policy-level earning inputs to compute risk margins and claims reserves.
The Xceedance team identified input data files containing essential information at the policy levels and followed this up with in-depth discussions with the operations, finance, and actuarial functional teams to develop end-to-end processes enabling the computation of earnings at the policy level. Xceedance also automated the calculation of unearned premium, deferred acquisition costs, and reinsurance calculations, such as ceded premium, commission, deferred acquisition cost, and unearned premium. Automation was also introduced across accounting and reporting processes to ensure that entries complied with generally accepted accounting principles (GAAP).
The insurer’s collaboration with Xceedance strengthened processes creating monthly underwriting journal entries at the policy level and reducing the cycle time from eight days to one day. Automation tools enabled the actuarial teams to access the earning file and compute reserve and risk charge calculations. Overall, the changes brought about by the partnership strengthened the insurer’s global underwriting accounting processes and enhanced productivity significantly.