Global

Case study: Insurer prepares for scalable growth 

Global life insurer reduces risk of financial misstatement and establishes an operating model and finance function scalable to absorb its growth agenda.
Insurers prepares

Throughout the inception, development and implementation of the data-centric solution, multidisciplinary teams worked to achieve finance operational excellence and reduce the risk of reporting misstatement.

Challenge

As part of a major restructuring, a global life insurer was in the process of establishing an operating model and finance function sufficiently scalable to absorb its growth agenda. In particular, the insurer wanted to improve its confidence in the financial numbers and increase the flexibility of financial reporting to accommodate potential acquisitions.

Solution

To deliver on these fundamental strategic objectives, an evolution of the existing systems and processes would not be enough. Instead, KPMG professionals worked closely with the client on a finance transformation program, focused mainly on the UK, to develop and deliver a target finance operating model that addressed — in a cohesive way — the relevant issues around financial systems, processes, reporting, organization, culture and behavior.


Throughout the inception, development and implementation of this data-centric solution, multidisciplinary teams worked to achieve finance operational excellence and reduce the risk of reporting misstatement. A vision of faster, more accurate data from third party source systems was established early in the data lifecycle to support the client’s acquisition ambitions.

Results

  • An architecture that encompassed policy administration systems, central data integration, warehousing and reporting, a new general ledger, and financial consolidation and group reporting capabilities.
  • Strategic interfaces with existing, as well as future third party systems.
  • Business requirements for key reporting functions, including aspects of Solvency II.
  • Simplification of actuarial reporting and analysis with the aim of developing a single integrated reporting platform for finance and actuarial staff and improving the alignment of business reporting.
  • Analysis and reengineering of the close process to achieve significant short-term enhancements in the speed, quality and efficiency of reporting.
  • Successive reorganizations of the finance function to fine-tune its cost-effectiveness and efficiency.
  • Articulation and communication of necessary changes in culture and behaviors to reflect the new processes and organization.

Throughout the program, KPMG professionals worked with the client as an integral part of the team, providing leadership and knowledge in key areas, as well as helping to ensure a continuous transfer of knowledge and experience. Because client staff was intimately involved in the design of solutions to meet their firm’s specific needs, they developed a deep understanding of the data, systems, processes, behaviors and organizational features.

Benefits

  • The leadership has greater confidence in the quality and robustness of the financial numbers, helping enable faster and better decision making.
  • A scalable solution for operational processing, financial reporting and the resolution of ad-hoc queries has provided a better platform for the client’s growth strategy.
  • Reduced the risk of financial misstatement.
  • The increased efficiency of actuarial reporting has contributed to a significantly faster close process.

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For more information on our capabilities in these areas contact our experts at insurance@kpmg.com