Insurers are striving to sustain profitability in the face of; uncertainty, difficult access to new equity, capital constraints, volatile asset values, the softening of non-life premium rates and the slowdown in the economy. Regulation (such as EU Solvency II and IFRS) also presents a great shake-up, not only in reporting, as some aspects have strong competitive implications.
In this complex industry environment, board level executives globally are facing the EXECUTION challenge, feeling the need to better control their businesses: “How will we implement what we have decided in this room?” Effectiveness, efficiency, risk assertiveness, enterprise frugality and the avoidance of waste are values to promote and to implement in your enterprise operational model.
One challenge that companies are facing is how to measure the execution of the defined strategy and the decisions that are made at management level. WeDo technologies has a simple 6 step approach to this concept:
This is how you can measure execution with manageable information.
The key issue now is to find out how to transform data into manageable information. Adopting Business Assurance practices is becoming critical for the companies in order to prepare the business for market challenges, operational risk and new business models. This practice is focused on checking data quality and consistency, on its financial value and on the implementation of controls on top of the business processes.
Revenue Assurance applies the Business Assurance concept from a financial governance perspective - Business processes directly affecting revenues streams will drive the diagnosis effort to identify causes on potential losses and the improvements opportunities
In order to implement Revenue Assurance concepts, we propose an in depth analysis of several Revenue Chains in an Insurance company. This is done by reconciling data effectively, with a thorough understanding of the actual information systems supporting the business process. With this approach, we assure and control the business rules.
Nevertheless, the purpose of the Revenue Assurance approach shall not be the replication of the existing business rules. The purpose is to implement a set of verifications and that are executed on a continuous basis allowing the business to proceed without interruptions, whilst constantly checking for problems.Insurance Revenue Streams (Revenues framework – high level diagram)
By implementing a Revenue Assurance program, insurance companies can identify leaking revenues thus improving bottom-line EBITDA.
As the diagram below shows, by implementing revenue assurance mechanisms in the revenue chains, we can provide performance improvement by up to 5 points on collected revenues.
In summary, WeDo technologies Business Assurance practice increases the bottom line of your company, providing a complete set of services and solutions that will help prevent revenue leakage and improve operational efficiency.
