The Underwriting Account

Quick and transparent calculation and posting of accruals

The underwriting account is an integral part of an insurance company’s financial statement. Determining the underwriting accruals one of the most complex tasks, and in most cases it is not an automated process. Calculations are posted to the financial accounting system by either additional interfaces or they may be posted manually. The entire process is not transparent and there is little or, at best, incomplete documentation. Automating processes reduces financial statement run times and cuts costs. Fewer errors occur and the entire process becomes more transparent.

ConVista’s solution is an add-on to the standard SAP system. It facilitates the calculation of portfolio-based underwriting accruals (e.g. accruals for claims settlement costs, equalization reserves). Standardized data is provided by the financial accounting system or external data from FI-SL, for example. SAP standard functions simplify the co-ordination of the standardized data and it makes the process more transparent. Based on this data accruals are calculated using freely configurable calculation methods. The entire process is significantly quicker and is less prone to errors.