Finance Transformation for Insurance: The Next Wave of Change

Ernst & Young (EY) recently published a report outlining the crucial need for finance transformation within P&C companies. and how finance teams can conquer the challenges standing in the way. While finance transformation has been on the radar for most companies over the past several years, the article made clear that the time for “thinking” about these strategies is over. It is time to act and begin implementing.  

According to EY, “Finance transformation programs can unlock up to 30% in efficiency gains.” This is an improvement that insurance companies cannot afford to ignore.  To remain competitive and keep up with the rapid rate of change within the insurance industry, the systems behind company operations must be agile – finance functions included.

The ability to leverage technology is crucial for companies wishing to drive real finance transformation. Outdated accounting systems that require a heavy dose of manual input place unnecessary and inefficient burdens on professional accountants. As finance executives embrace the need to shift the work away from mundane tasks to value-added strategic roles, accounting systems are at the very core of these decisions, in ways that will have far-reaching impact throughout an organization.

Finance Transformation for Insurance – the Flexi Way

Flexi’s deep experience over three decades, in both the development and delivery of accounting software, is invaluable in helping companies achieve maximum efficiency. With robust automation features, our software is designed to accomplish the efficiency gains needed for true finance transformation.

But software is only part of the equation. Our expertise and best practices gained from serving insurance companies for over 30 years helps our customers drastically shorten the implementation cycle and avoid costly mistakes.

Accounting Automation: The Time is Now

Accounting automation is the smart use of computer software to automate manual parts of the accounting process. While technology cannot replace the need for the higher-level thinking and human intelligence skills needed in many accounting and finance roles, it can replace the mundane, repetitive tasks that most accountants find burdensome.

It has been estimated that office workers spend 552 hours a year completing administrative or repetitive tasks. The traditional role of an accountant is consumed by these types of tasks that typically involve data entry. Some of the most manually-intensive processes for accountants include:

• Journal entries
• Reconciliations
• Invoice processing
• Expense processing
• Payment processing
• Reporting

Flexi’s accounting software includes a suite of solutions designed to automate much of these tasks. In a highly secure and controlled computerized environment, accounting teams can customize the level of automation vs. human oversight that is needed for their business to make significant efficiency gains, without compromising the integrity of complex decisions.

This is important in any corporate accounting environment, and particularly so in industries such as financial services. Automation rules cannot be a one-size-fits all for most companies. Accounting professionals need the flexibility to determine where automation makes sense, and where it does not.

The banking and insurance industries, for example, are highly complex with frequently changing regulations. Flexi’s software is built with the flexibility to accommodate such sensitive environments, relying on technology to enhance and not replace.

As one VP of Finance shared in our whitepaper, Accounting Automation and AI, “it must be careful automation. You don’t want to automate a process that has so many nuances that you end up spending more time correcting automation (done incorrectly) than if you had just done it manually.”

When companies have the software necessary to achieve the appropriate balance between automation and oversight, the results are truly transformational. As example, complexities such as automating intercompany transactions in insurance accounting can be accomplished with software that is truly designed for the industry.

The benefits of accounting automation in insurance are numerous. Automation can dramatically help to streamline processes, enhance efficiency, and improve compliance.

This case study illustrates the tangible effects of these efficiency gains, as Mercury Insurance Group recounts how Flexi’s insurance accounting software simplified the financial close and makes it easier to adapt to regulatory changes and M&A activity.