Streamlining Underwriting Accounting for Insurers

This case study details the collaboration between Xceedance and a global property and casualty (P&C) insurance service provider to enhance the underwriting accounting process. The client faced challenges in generating underwriting journal entries at the policy level, as these were previously only created at the general ledger account level. The absence of a suitable tool for complex calculations related to deferred acquisition costs, unearned premiums, and reinsurance ceded portions led to a time-consuming manual process that did not align with global accounting practices. Xceedance's solution involved automating the computation of these entries and ensuring compliance with generally accepted accounting principles (GAAP). By identifying necessary input data and collaborating with finance, operations, and actuarial teams, the process was streamlined, resulting in a significant reduction in cycle time from eight days to one. The improvements allowed the actuarial team to access policy-level earning inputs, enhancing productivity and compliance in the client's accounting practices.