Jun 01, 2010
Download Their overburdened back-office operations, finance staff and technical infrastructure are under pressure to meet ever-increasing demands. As insurance companies face shifting regulations and a challenging economy, their CFOs and CIOs are concerned about their organizations� ability to maintain account integrity and respond to expanding reporting requirements. Our experience indicates that challenges within core financial processes and typical legacy finance architecture can result in problems with account integrity, including poor data quality, that make timely and meaningful reporting problematic. Reconciliation challenges: Some aspects of the reconciliation processes can impede its effectiveness as a control point and increase complexity. For example, using self-implemented solutions to address an enterprise-wide reconciliation process can cause a lack of uniformity, which can spur multiple adjustments with inconsistent explanations. Further, with no central oversight of different points of GL-to-source-system reconciliations, the ownership of account and break resolution can be unclear. Multiple teams may examine the same accounts while ignoring others. This can also delay the handling of critical accounts due to unclear escalation paths and confusion over who is responsible for approval.