Insurance industry veterans know that accounting staff responsible for preparing a carrier’s annual statement draw a sigh of relief after March 1, the deadline for filing. Many of them face a year-end crunch of manually assembling information from different places, systems, and spreadsheets. There’s also a scramble to secure Schedule F funding, in forms of letters of credit, trust fund and other collateral. The scramble for reducing or eliminating the Schedule F penalty is paramount. Because companies want to prevent the direct hit to a carrier’s surplus, accuracy and timeliness are crucial.
More prepared companies have reinsurance systems that allow them to start the process earlier ... some can start calculation of Schedule F collateral as early as June. Many companies begin securing Schedule F funding with reinsurers earlier in the year to avoid the year-end rush and reduce the overall timeframe for closing reinsurance financial reporting periods, particularly at year end. One StoneRiver client said our reinsurance system reduced a three-week reinsurance closing and Schedule F process to a three-day process, an 80% reduction. ‘That’s a wrap’ comes a lot faster with a lot less effort with true reinsurance automation.