| Increasing efficiency with a scalable, easy-to-use system for reconciliation of risk premium receivables |
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The client
Our client is amongst the largest reinsurance companies in the world
The challenge
Our client needed to reconcile the risk premium receivables for the reinsurance cover provided to the life insurance carrier. The spreadsheet based solution, currently in use by the client was not capable of handling the large volume of the policy contract and benefits data (approximately 4 million records) across complex scenarios, benefit and plan types.
Our client also wanted to build quarterly premium history with retrospective effect on a per life and benefit level. The premium calculation involved referring to various tables and formulae that made the entire process extremely complicated. Some other key challenges were:
- Taking lapses and cancellations into account while calculating the premium
- Splitting the joint life plans into individual lives and performing ‘sum at risk’ calculations in such cases
- Complex algorithms for processing benefits such as WOP (waiver of premium), SOL (Start of Life) etc. in case of child care plans.
- Performance degradation with subsequent quarter processing as Sum at Risk took into account the cumulative Sum Assured
The solution
Our solution has the following features:
- Allows treaty and claims management
- Computes Sum at Risk (SAR) on a per-life basis for all plans and benefits
- Calculates risk premium
- Easy-to-use interface to initiate various premium calculation in batches
- Flexible solution to match the changing business needs of SA calculation, introduction of new plans and benefits
- Joint lives premium calculation by segregating policy data into individual lives
The benefits
- Consistencies in calculation
- Reconciliation of accounts with life insurer in a stipulated deadline
- Efficiency over manual process increased by over 90%.
- Can cater to single policy with or without riders
- Can handle multiple treaties for same policy
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