Increased recoveries and reduced costs from automating
reinsurance billing
DataCede’s reinsurance experts were asked to analyze and provide solutions for a
reinsurance client with over $800 million in outstanding ceded reinsurance receivables.
DataCede began the engagement by employing its proprietary workflow analysis
methodology. By creating a detailed map of the end-to-end billing progression, we were
able to identify the redundancies, bottlenecks and serious information gaps in the process
that would directly influence the client’s ability to recover. As an added benefit, our
process identifies automation opportunities that would provide our client with the best
return on their investment.
Our client was so pleased with the cost and the speed in which we completed our
assignment, they asked us to embark on a strategic program to streamline workflows,
improve the quality of the data and implement a reinsurance billing system that would
effectively support their ongoing collections activities. Our client’s complex reinsurance
structures and all of their supporting information were captured in individual
spreadsheets or paper files. We needed to be able to support Excess of Loss (Aggregate
and Per Occurrence), Quota Share/Proportional, Treaty and Facultative structures. One
of our first priorities was to populate a contract database so the information could be
stored, maintained and accessed in a standard format.
Once we marshaled and organized the supporting data, we processed it though one of
DataCede’s proprietary calculation engines and produced accurate and defensible
reinsurance bills in record time. Our systems provide configurable interfaces that can
accept a client’s claim, policy and contract data, regardless of their format.
As a result of working with DataCede’s reinsurance experts and utilizing its systems, our
clients’ bills to its reinsurers were produced in a standard, consistent manner that stood
up to accounting audits and legal scrutiny. Our client saw their recoveries significantly
increase while payment delays decreased as a result of fewer audits, faster payments, and
frequent settlements.
Our client also benefitted from reduced operational costs. By streamlining their
processes and leveraging technology, it was able to increase the number of bills
processed each month with fewer people. Additionally, our client found that it spent less
time and money on audits and arbitrations as their data quality improved and DataCede’s
reporting tools provided the requested information much faster.
From a management perspective, using DataCede’s reinsurance systems improved the
visibility of productivity and exposures through robust KPI and aging reports. These
reports provided the ability to regularly evaluate their exposures to its many reinsurers
and quickly respond to changes in the environment.
Please contact a DataCede representative to learn more about our reinsurance billing
systems and turn-key outsourced billing services.
