Finance leaders need a core set of tools that help them to do their job and add real value to their organisation and nowhere is that more the case than in insurance. As we find ourselves firmly into the third decade of the 21st century, finance leaders are having to ensure that they evolve to thrive.
In this post we’re looking at 4 of the core things that the modern insurance finance leader needs, including;
- Integrated systems
- Automated processes
- Consolidation and separation
- Real-time visibility
Integrated systems
One of the foundations of a slick finance operation has to be the establishment of integrated finance systems.
Insurance has for too long suffered from siloed data sources, with operational systems that don’t talk to finance, and finance that won’t talk to banking and payments.
The establishment of one source of the truth, with systems that are integrated in real-time and don’t require a cottage industry of excel gurus to make it work has to be one of the primary aims of any transformation process.
Automated processes
Automation has come on leaps and bounds over the last five years or so, and it no longer makes sense to have manual processing of tasks that are standardised. Automated payables, receivables, and expenses are now commonplace, but it is important to push this further.
Only after removing the need for human intervention in all ‘assembly line’ processes can we free people up to do the real value-adding activities that the insurance sector is crying out for.
Consolidation and separation
The ability to consolidate across departments, channels, and entities should be second nature to any insurance finance department.
A common chart of accounts and sensible project, function, and departmental reporting all help the CFO to instantly form a rolled-up picture of the organisation as a whole.
By the same token, it has to be possible to quickly break down the company into its constituent parts to allow profitability reporting by product, company, or channel.
Being able to ‘slice and dice’ in this way supercharges the reporting capability of any finance function.
Real-time visibility
It’s no longer acceptable to see data taking days, or even weeks, to roll up into a comprehensive report. Insurance leaders need the information to help them make decisions, and it needs to be as current as possible.
Part of the digital transformation process needs to be the provision of real-time information to allow that to happen.
Digital transformation is a journey and not a destination
It would be a mistake to think that once you have a new system in place that you have finished the job. In fact, the process of digital transformation is an ever-present challenge for today’s finance leaders.
The appearance of new technologies, new business models, and new risks means that for the insurance business as a whole, and finance leaders in particular, the picture is always changing.
If you would like to know more about how we support insurance companies, you can learn more about how Itas and Sage Intacct can help your insurance company embrace digital transformation and accelerate success, here.
