naic: improve efficiency accuracy and productivity in the ......improve efficiency, accuracy and...
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The contents of this presentation are confidential. Copyright © 2017 Workiva.
Improve Efficiency, Accuracy andProductivity in the RegulatoryReporting Process
Lisa BenoitInsurance Industry Subject Matter Expert, Workiva
Discuss key cultural challenges facing the industry
Identify regulatory challenges faced by insurers today
Describe challenges with data management
Discuss process improvement basics
Identify what to look for in a technology solution
Key Takeaways
Statutory Reporting example
Key Challenges
1
Key Challenges
Cultural
• Business model is changing fast• Increasingly connected consumers• Attracting and retaining talent• Emerging technology
2
Key Challenges
Regulatory
• Increasingly complex regulatory environment• New regulations constantly added
◦ ORSA◦ Solvency II◦ International Capital Standards◦ Dodd-Frank
◦ Model Risk◦ Life PBR◦ Captive Insurers◦ DOL Fiduciary Rule
3
Key Challenges
Data Management
• Non-value added time• Lack of true collaboration that adds value• Version control• Data governance leads to risk in reporting• No single source of truth
Key Challenges
REGULATORYCULTURAL
DATAMANAGEMENT
Key Challenges
REGULATORYCULTURAL
DATAMANAGEMENT
DO MORE WITH LESS
So then, what can you do
ProcessImprovement
Create a process improvement culture
90% of all spreadsheets with more than 150 rows have errors*
80% of projects go unaddressed*
Small processes often fly under the radar
Process owners take the lead
Become empowered to be a process improvement junkie
Consider the Universal Process Framework
Gather
Unstructured Data - 90%
Structured Data - 10%
GL &STATPackage
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
Gather
Unstructured Data - 90%
Structured Data - 10%
GL &STATPackage
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
Biggest opportunity for process improvement
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
GL &STATPackage
Unstructured Data - 90%
Structured Data - 10%
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Copy, paste, manually update, andformat text and tables in multiple
documents. Track deliverables, followup on and resolve questions, and
track sign-off.
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
GL &STATPackage
Unstructured Data - 90%
Structured Data - 10%
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
Version 2
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
Version 2
Version 3
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
Version 2
Version 3
Version 4
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
Version 2
Version 3
Version 4
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
In crunch time, itbecomes difficult
to accuratelyincorporate all
changesnecessary while
minimizing manualerror
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Gather Organize
Accounting Operations
Accounting Policy
Actuarial
Corporate Benefits
GAAP Reporting Team
Investments
Legal
Lines of Business
Reinsurance
Risk Management
STAT Reporting Team
Tax
• Trackdeliverables
• Combine data• Perform rounding
Master Excel® File
Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.
Reporting Team
Audited FinancialStatement
MD&A
FootnotesTimes 35+ Notes
Times # of Pages
Times 25+ Notes
Review
Version 1
Version 2
Version 3
Version 4
DepartmentalManagementGL &
STATPackage
Unstructured Data - 90%
Structured Data - 10%
Final Review
Version 4
Version Final
Senior Management& External Auditors
File with NAIC andState Regulators
Universal Challenges
Manual effort (roll forward, copy/paste, formatting, tick and tie, etc)
Unintended or missed changes
Data consistency within and across documents
Babysitting data
Version control
Universal Challenges
Review and approval
Timing and filing deadlines
Audit trail (who changed what, when?)
Tracking deliverables and status
Collaboration
Use Technology toYour Advantage
Key attributes to consider
1 Reduce manualeffort
2 Aids in collectionof data
3 Automates statusdashboards
4 Enables truecollaboration
5 Provides trueaudit trail
6 Eliminatesversion control
7 Provides a singlesource of truth
8 Streamlines thereview process
The insurance landscape is continually changing
Cultural and regulatory challenges plague insurers
Data management issues exasperates these challenges
Adopt a process improvement mindset
Wrap-up
Look to technology to assist
The contents of this presentation are confidential. Copyright © 2017 Workiva.
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