Data integrity is the foundation of a reinsurance analyst’s job. In a general setting, data integrity means maintaining and assuring the accuracy and consistency of data over its entire life-cycle. As it relates to the entire life insurance business operation, data integrity means ensuring there is no mistranslation of transactional data between the insureds, life insurance companies, reinsurance companies and retrocessionaires.
- Imagine having your life insurance application rejected because your stated income was not filled in correctly.
- Imagine being charged a higher insurance premium than expected because your insurance rating was not translated correctly into the life administration system.
- Imagine only receiving 10% of your stated benefits because a zero was missing at some point in time during the transmission of your information between insurance and reinsurance parties
DATA INTEGRITY AS IT RELATES TO REINSURANCE
All the above instances are related to data integrity. Its potential impact on any company’s bottom line is large, regardless of size and industry. In my role as a reinsurance analyst at LOGiQ3, I work with both life insurance companies and retrocessionaires to ensure data integrity is kept throughout the entire chain of business. This means that I make sure the information I receive from life insurance companies is recorded as intended and I prevent any unintentional changes to the data as I use it to generate billings and reports for retrocessionaires.
Mistranslation of data could lead to incorrectly calculated reserves, premiums and claims, which affects both company earnings and investment decisions, eventually harming the most valued clients in the business – the policyholders.
DATA INTEGRITY + A RELIABLE LIFE REINSURANCE SYSTEM
Having a reliable life reinsurance system can mitigate the risk of data corruption. When evaluating which life reinsurance system is best, it’s important to look at the full suite of software solutions offered and how they can benefit your business needs specifically. The TAI .NET system that we use for our assumed and retroceded reinsurance administration services allows for full exports of reserves, premiums and claims activities which then can be loaded to the general ledger at several levels providing a link back to the originating source. This allows us to put sound data checks in place from the beginning to the end of the chain of business, reducing the chance of encountering reinsurance data errors. All policies can be billed correctly and timely, leading to a better snapshot of a company’s bottom line and policyholders remain well-protected.
Data integrity and quality should be the foundation of any insurance and reinsurance organization. In the European insurance sector, the introduction of Solvency II is impacting the importance of data.
I’m curious to hear about the tools you might use to ensure data integrity? In a prior post I shared, I cover off the top 5 tools LOGiQ3 analysts use – give it a read and share your thoughts with me in the comment section below!
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