Internal reporting has its own demands, as key financial metrics in insurance organisations depend on calculated values from complex actuarial models. Problems arise from too many reports, inconsistent measurements, legacy systems with poor quality data, limited line of sight through the reports and the organisation. In short, poor management information (MI) generates significant costs within Finance with little added value to support the business decision making process. Management information covers actuals reporting, budgeting, planning and forecasting.
Some of the key challenges for Finance in preparing management reports are:
- a constantly changing external environment;
- an unclear vision of plans and forecasts;
- ad hoc requirements leading to tactical MI development;
- a lack of technology and tools to support planning and forecasting;
- a lack of understanding of controllable drivers for the business; and
- the significant amount of time spent on planning/budgeting/forecasting process due to iterations, review and challenge.
KPMG has helped a number of clients identify and define their Key Performance Indicators (KPIs) to support business strategy and designed the supporting business processes to deliver these KPIs.
Coming soon: document with more details on Internal reporting.