Unallocated cash simply refers to the collections received by the service provider on the date of contract termination, which has not been evidenced as a particular receivable and is pending investigation. It has been a persistent challenge for insurance companies over the years, as it not only hampers customer experience and relationships but also leads to many compliance and audit issues.
As per UNCTAD's World Investment Report, millions of dollars' worth of unallocated premium is trapped in the insurer books globally.
With rising focus on fund applications, credit positions and contractual obligations, insurers must deploy disruptive technology to devise agile solutions & transform the insurance/reinsurance cycle.
In this blog, we will discuss the top ways how Espire has been helping leading insurance brands manage unallocated cash with scalable digital solutions.
1 . Leveraging Data & Analytics tools to drive Positive Outcomes
By leveraging the power of data and advanced analytics, insurance providers can analyze historical customer data and trends, measure delinquency levels and inventory to optimize workflows and devise a scalable credit control and collections strategy. Key data insights can help business leaders take informed decisions to streamline roll-rate and flow-rate visibility while driving positive business outcomes.
2. Mapping Unallocated Cash by Debt Age
The kind of account or policy and the age of debt are two significant factors which form the bedrock of collection processes. By mapping unallocated cash by debt age, various complex processes like customer behavior, contact-to-settlement ratio, query and dispute ratio, can be efficiently identified and addressed.
3. Simplified Report Generation
Meticulously mapping inventory performance and month-on-month delinquency ratio is critical for insurance companies to stop financial leakage and efficiently manage cashflows. From time immemorable, reinsurance companies would depend on their employees for drawing up the paperwork, checking and validating invoices to mitigate the perils associated with unallocated cash.
By deploying automation and cloud-based solutions, Espire is helping leading insurance brands simplify the complex report generation process, reduce the dependence on manual efforts, streamline inventory management and reconciliation while reducing operational costs.
Let's understand how Espire can help mitigate the challenges of unallocated cash with an example.
This success story depicts how Espire helped a leading Insurance run-off claims business in London design and implement a centralised reinsurance & accounting system to streamline all claims and related financial movements.
Key Business Bottlenecks
- The customer was leveraging legacy technologies like AS400, Cobol etc, which required regular maintenance and enhancements
- They were dependent on excel sheets for complex calculations, which sometimes led to financial leakages due to incorrect cash/ledger entries
- Inefficient reporting system led to mismanagement of important business data
- Required a user-friendly cloud-based accounting and reporting solution to support reinsurance & accounting processes
Espire's Business Solutions
Our team at Espire, carefully analyzed the pain points faced by the customer and designed scalable technology solution to mitigate key challenges of unallocated cash and deployed an automated reinsurance & accounting system to carry out complex commutations for run-off businesses.
- The system supports end-to-end inward and outward data with all possible business use cases
- We developed the cash ledger module where existing unapplied cash items can be enquired upon from different angles like item type receipts/payments, ledger type, broker code etc. this makes ledger technician tasks easier to process and reconcile it.
- We also incorporated cash maintenance processes like de(reconciliation), write-off, restore and transfer to allow ledger technician to work upon and permanently git rid of organizational unapplied cash issue.
- Our solution has an inbuilt ledger control reporting functionality which validates the data regularly, if everything is properly reconciled (including unapplied cash) or not, allowing stakeholders to take actions accordingly
- With a well-controlled user access management system, all required policies, claims and ledger data would be readily available in the reporting module for easy access to the administrators
Top Business Benefits
- Espire's automated reinsurance & accounting system allows the administrators to get auto calculated liabilities out of the system for a creditor
- It provides easy access to critical business data and ensures faster generation of reports
- It mitigates the problem of unallocated cash with increased automation accounting processes, outward/inward closings and ledger enquiries and maintenance processes with enhanced control frameworks
- It stops financial leakage arising due to human errors and helps reduce operational costs
Espire is helping leading insurance companies automate claims handling and management, streamline reinsurance processes and drive greater growth. Read more in our case study>
Businesses in the insurance sector need to deploy agile technology solutions to reinvent complex operational processes and adopt an aggressive strategy for the efficient management of unallocated cash, to strengthen their credit position and build lasting customer relationships. To discover how we’re assisting businesses accelerate their growth & build resilience, visit> https://www. espire.com/industries/insurance or get in touch at firstname.lastname@example.org
MORE FROM OUR BLOGS
Improve business experience and operational efficiency in reinsurance with agile solutions
As a leading Digital Transformation and Total Experience Leader, Espire is helping businesses in the insurance and reinsurance sector drive impeccable customer experience, employee experience and business experience by designing agile technology solutions to fast-track growth and enhance total experience. Here is a Snapshot of our expertise in Reinsurance.
Sitecore managed cloud drive digital experiences at scale with cloud
Businesses have started investing in digital experience platforms and technologies aggressively to drive omni-channel digital experiences throughout the customer journey. Sitecore empowers businesses to host their different DXP products on cloud, Sitecore Managed Cloud helps them streamline system integration, enhance the speed of deployments while providing improved security and data privacy.
Digital Communications and CCM Solutions 4 key initiatives to Improve Customer Experience
Digital communications help in stitching your prospect to customer journeys together by keeping them actively engaged and allowing them to re-initiate conversation from where they left off. Delivering contextual and interactive communications can help the customers take the next step and reach out to you through the channel convenient for them.
Total experience digital transformation strategy for global businesses
The Total Experience strategy has emerged as a key trend for businesses to drive better digital experiences for users, customers and employees while improving business growth
Digital experience management 5 best practices to improve customer experience on b2b websites
Customer Experience is at the heart of customer service and building long-lasting customer relationships. Customer experience will emerge as the key determinant of business success, surpassing the quality and price of products. While B2C brands have prioritized customer experience as a strategic business goal, B2B companies are yet to navigate their technology investments towards digital experience management.
Top 5 benefits of digital insurance fast track your digital journey and bolster growth in 2022
Digital Insurance has empowered the insurance and reinsurance industry streamline key business operations like premium calculations, claims management, customer communications and customer data storage etc, thereby enabling leading companies to deliver unmatched customer experience, business experience, employee experience, multiexperience and user experience at scale
Sitecore cdp optimization 5 steps for deploying customer data platform
The Customer Data Platform (CDP) has become a critical part of the modern technology stack, as a one-stop solution for data orchestration and management. Sitecore CDP comprises of all the core data management capabilities along with intelligent decisioning, predictive analytics, experimentation, and orchestration for driving positive brand experiences
The future of CRM in the CXM era
Both CRM and CXM are inter-related. The CRM system supports CXM with relevant data to personalize service offerings. CXM analyzes the data and leverages it to deliver impeccable digital experiences across touchpoints.
Sitecore marketing automation craft personalized customer experience and unlock growth
Marketing automation has emerged as a must-have technology for brands to drive personalized marketing campaigns at scale and achieve exponential growth potential. Apart from seamless integration of customer data, email templates and a detailed automation plan, Sitecore provides marketers with additional features of data segmentation, AI-ML based personalization scenarios, real-time communication triggers and BI reporting
Delivering total experience in the insurance sector with scalable legacy transformation
Overhauling the legacy core IT infrastructure and adopting cloud-based solutions has become a must for insurance companies to reap the benefits of true digital transformation. Businesses in the insurance sector should adopt Total Experience solutions to craft impeccable customer experience, business experience and employee experience to bolster growth in the new normal.
Speak to Our Digital Transformation Specialists
Let's get you started on the digital-first & transformation journey. Reserve your free consultation or a demo today!
Global Customers Served
Resources Certified on multiple leading technologies
Years of Experience in Digital Transformation & Total Experience