Actuarial and Accounting

Actuaries perform calculations and analysis needed to determine company reserves and correct tariffs. Responsible for statutory accounting, a company's accountant or controller requires enormous amounts of data that serve as inputs for these calculations, and spends much time collecting such information.

InsFocus BI provides this information in visual report form, and exports it to Excel or other formats as an input for further calculations.

Claim Triangulations The basic information needed for claims reserving is the development of claims over time, also known as claims triangulation. This information format provides the basis for actuarial reserve calculations. InsFocus BI includes a built-in triangulation report format enabling an actuary to quickly define numerous triangulation reports on all claim measurements such as paid claims, incurred claims, number of claims reported, and average claim. The actuary has the flexibility to define any date, such as accident, reporting and policy inception, as the time base for such analysis. The data in triangulated form can be viewed, printed and exported to Excel for further analysis. The system also provides the basic actuarial analysis "chain ladder" method, enabling immediate data extrapolation to determine an initial estimate of "ultimate claim cost." Claims Cost Analysis The calculation of insurance tariffs is based on claims cost analysis. This analysis needs to be performed relative to a base exposure, which typically is either policy exposure or sum-insured exposure. The system enables actuaries to quickly obtain the base data required for such analysis, freeing them to spend more time analyzing the information. InsFocus BI performs claim cost calculations independently, and exports data for additional external analysis. Daily Profit/Loss Insurance firms’ financial statements are calculated at the end of each quarter. Drawing up such statements is a lengthy process that typically takes 2-3 months following the end of the quarter. Insurance executives often want to see an estimated daily profit/loss statement at the outset of the current quarter to better control performance. With InsFocus BI, an accountant can create a copy of the company's financial statements, and thereby provide a daily statement to management. Profit/Loss Analysis Once the quarterly profit-loss statement is completed, management needs to analyze it from various perspectives to determine profit- and loss-making segments of their business. This analysis can be very efficient if the manager can "slice" the report by various dimensions such as product, line, geographical area, branch office, client type, and original policy issue year. InsFocus BI enables such analysis, which is an integral part of its design, thereby helping managers determine their profitable portfolio sections and further improve company performance. Statutory Reporting An integral part of insurance company accounting is regulatory reporting. This usually involves gathering large amounts of information about the company's financial performance, and submitting it in a predetermined format to regulators. This activity typically involves a great deal of work in the accounts department. Using InsFocus BI, the accounts department can define pre-determined reports that provide it with the required data to facilitate regulatory reporting.