Features in Insurance Accounting Systems
for Finance and Accounting
Specialized financial software that handles industry-specific accounting requirements, including premium recognition, loss reserves, and statutory reporting.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Claims Accounting & Loss Reserves
Feature set for managing claims payments, reserve calculation, and tracking of outstanding liabilities.
- Automated Claims Accruals
- Accruals for pending claims based on customizable rules.
- Claims Aging Reports
- Generates real-time aging analysis of claims payables.
- Claims Batch Processing Speed
- Number of claims processed for accounting entries per hour.
- Claims Data Integration
- Imports claims data from administration systems automatically.
- Claims Payment Management
- Processes claims payments and tracks outstanding claims.
- Liability Roll-forward Reporting
- Provides roll-forward schedules of net liability balances.
- Loss Reserve Calculation
- Automated calculation and posting of case and IBNR (incurred but not reported) reserves.
- Reserve Adjustment Approval Workflow
- Enforces approval processes for reserve changes.
- Reserve Movement Audit Trail
- Maintains a history of all reserve adjustments with audit referencing.
- Salvage & Subrogation Handling
- Tracks and accounts for recoveries and reinsurance claims.
Core Accounting Capabilities
Fundamental accounting functions required for insurance operations, such as general ledger, accounts payable/receivable, and reconciliation.
- Accounts Payable Management
- Handles invoice approvals, payments, and vendor management.
- Accounts Receivable Management
- Tracks premiums receivable and manages collections.
- Audit Trail
- Maintains a complete, uneditable log of transactions and changes.
- Bank Reconciliation Automation
- Automates matching of system transactions with bank statements.
- Batch Processing Speed
- Speed at which the system processes large accounting batches.
- Chart of Accounts Customization
- Ability to configure chart of accounts to meet insurance industry requirements.
- Concurrent User Support
- Number of simultaneous users supported.
- Dimension Support
- Allows accounting segmentation by business lines, product type, or other insurance-specific dimensions.
- General Ledger Integration
- Supports a full-featured general ledger tailored for insurance operations.
- Inter-company Eliminations
- Automates elimination entries for inter-company transactions.
- Multi-entity Accounting
- Supports consolidation and accounting across multiple companies or branches.
- Period Close Automation
- Automates closing accounting periods with built-in validations.
Integration & Interoperability
Ability to connect with policy administration, claims, CRM, payroll, and other internal/external systems.
- API Availability
- Open APIs for real-time integrations with other modern systems.
- Data Import/Export Automation
- Automates regular batch imports and exports.
- Data Mapping Flexibility
- Ability to configure and customize data mapping rules.
- Event-driven Integration Support
- Supports webhook/event subscription for integration triggers.
- Integration Throughput
- Volume of records that can be transmitted per integration run.
- Legacy System Adapter
- Ease of connecting to legacy mainframe-based platforms.
- Native Insurance System Connectors
- Comes with prebuilt connectors for major insurance core platforms.
- Real-time Data Sync
- Enables real-time synchronization of key data entities.
- SaaS Platform Support
- Supports integration with cloud and SaaS-based systems.
- Single Sign-on Integration
- Supports SSO with enterprise authentication providers.
Investment Accounting
Tracks insurance company investment portfolios, income, valuation, and regulatory compliance.
- Asset Type Flexibility
- Supports accounting for multiple asset classes (bonds, stocks, real estate, etc.).
- Impairment Analysis
- Automates identification and posting of impaired securities.
- Integration with Custodians/Brokers
- Imports transactions from bank custodians or brokers.
- Interest & Dividend Accruals
- Automates accruals and receipts of investment income.
- Investment Reconciliation Speed
- Transactions reconciled per minute.
- Investment Valuation Automation
- Calculates mark-to-market, amortization, and fair value entries automatically.
- Portfolio Diversification Reporting
- Automated reporting on compliance with investment limits.
- Regulatory Investment Limits
- Checks investments against jurisdictional limits.
- Trade Settlement Automation
- Automates posting of trade settlements.
- Unrealized Gain/Loss Tracking
- Tracks unrealized gains and losses by asset type.
Premium Recognition & Billing
Specialized handling of insurance premium calculations and recognition based on policy terms.
- Aging Reports
- Automated generation of aged premium receivables.
- Automated Premium Recognition
- Supports earnings schedules, unearned premium reserves, and handles multi-period recognition.
- Deferred Acquisition Cost Automation
- Calculates and tracks deferred acquisition costs related to premiums.
- Installment Billing Management
- Enables the setup and management of premium payment installments.
- Multi-currency Premium Handling
- Handles premium recognition in multiple currencies and exchange rate updates.
- Negative Premium Handling
- Supports reversal and refund of premiums.
- Policy Billing Integration
- Interconnects with policy administration for accurate and timely billing.
- Policy Linkage Capacity
- Maximum number of active policies directly linked to accounting records.
- Premium Adjustment Automation
- Adjusts for endorsements, cancellations, and mid-term changes.
- Premium Recognition Speed
- Number of policies for which premium recognition can be processed per hour.
Regulatory & Statutory Reporting
Features to help ensure compliance with statutory accounting principles and regulatory reporting (e.g., NAIC, Solvency II).
- Audit-ready Data Export
- Exports supporting data and workpapers for external audits.
- Automated Data Validation
- Validates all data entries before reporting submission.
- Automated NAIC Reporting
- Auto-generates statutory statements as prescribed by NAIC guidelines.
- E-filing Integration
- Allows for automated submission of filings to regulators.
- Filing Cycle Support
- Maximum supported reporting cycles per year.
- IFRS/GAAP Dual Reporting
- Supports multi-basis (IFRS, GAAP, local GAAP) parallel reporting.
- Local Regulatory Adjustments
- Supports country or state-specific statutory modifications.
- Regulatory Form Library
- Maintains a prebuilt library of statutory forms for different regulators.
- Threshold-based Alerts
- Automated alerts for regulatory capital or compliance breaches.
- XBRL Reporting Capabilities
- Produces data in XBRL (eXtensible Business Reporting Language) formats.
Reinsurance Accounting
Capabilities for managing both ceded and assumed reinsurance, reinsurance recoverables, and related reporting.
- Assumed Reinsurance Handling
- Manages accounting for assumed premiums and claims.
- Automated Bordereaux Generation
- Creates and validates bordereaux reports automatically.
- Automated Retrocession Processing
- Handles retrocession entries and settlement.
- Ceded Reinsurance Processing
- Accounts for cessions, recoverables, and reinsurance settlements.
- Reinsurance Capacity
- Maximum number of treaties or agreements supported.
- Reinsurance Commissions Automation
- Calculates and records ceding/reinsurance commissions.
- Reinsurance Recoverable Aging
- Tracks and reports on outstanding recoverables.
- Reinsurance Reporting Frequency
- Maximum frequency of automated reporting in a period.
- Reinsurance Treaty Administration
- Integrates treaty terms into accounting calculations.
- Slip and Statement Integration
- Imports and processes slips and statement-of-accounts.
Reporting & Analytics
Advanced reporting, business intelligence, and analytics capabilities tailored for insurance finance.
- Ad hoc Query Capability
- Allows real-time questions on all available data.
- Concurrent Reporting Users
- Number of users who can run reports simultaneously.
- Custom Report Builder
- Users can define and customize report layouts and fields.
- Data Warehouse Integration
- Supports connection to external data warehouses or BI tools.
- Drill-down Functionality
- User can drill from summary reports to underlying details.
- Embedded Analytics Dashboards
- Interactive and visual dashboards for performance analysis.
- Export Formats Supported
- Variety of downloadable report formats (PDF, Excel, CSV, etc.).
- Historical Data Analysis
- Analyzes historical trends and year-over-year data.
- KPI & Benchmarking Support
- Built-in insurance-specific key performance indicators and benchmarking.
- Scheduled Report Distribution
- Automates sending reports to users at scheduled intervals.
Scalability, Performance & Support
Handles the growth in users, data volume, and complexity leveraged by large and growing insurers.
- 24x7 Support Availability
- Provides all-day support coverage.
- 99.9% Availability SLA
- Service guarantees for system uptime.
- Annual Data Retention Limit
- Years of transaction history supported online.
- Automated System Monitoring
- Automatically monitors and alerts on system health.
- Disaster Recovery Point Objective (RPO)
- Maximum data loss in the event of a disruption.
- Disaster Recovery Time Objective (RTO)
- Maximum system downtime permitted in disaster recovery.
- Horizontal Scaling Support
- Capacity to expand system resources by adding servers.
- Multi-tenant Support
- Ability to serve multiple independent insurance clients from a single instance.
- Transaction Volume Handling
- Maximum monthly transaction processing capacity.
- Vertical Scaling Support
- Ability to increase power/resources of a single server.
Security & Compliance
Features to ensure sensitive financial and personal information is protected and compliant with legal standards.
- Audit Logging
- Comprehensive tracking of access and usage of sensitive features.
- Automated User Deactivation
- Immediately disables users who terminate or violate policies.
- Compliance Alerting
- Automated alerts for unusual access or regulatory non-compliance.
- Data Encryption at Rest
- All data stored on disk is securely encrypted.
- Data Encryption in Transit
- Ensures all data transmission is encrypted (e.g., TLS).
- Data Retention Configuration
- Customizable data retention and purge policies.
- Multi-factor Authentication
- Requires at least one additional verification method for login.
- Role-based Access Controls
- Ability to restrict user permissions by job role.
- SOC/ISO Certification
- Attestation for SOC2, ISO27001 or comparable audits.
- Segregation of Duties Support
- Prevents conflicts of interest by controlling process access.
User Experience & Usability
User interface, accessibility, and efficiency for end users, accountants, and business managers.
- Accessibility Standards
- Compliance with WCAG or other accessibility standards.
- Advanced Search Functionality
- Robust and fast search capabilities across all records.
- Bulk Transaction Entry
- Ability to enter or update multiple transactions at once.
- Context-sensitive Help
- Built-in help and support tied to each screen.
- Customizable Dashboards
- Dashboards can be configured by user or role.
- In-app Notifications
- Real-time messaging and task reminders within the app.
- Keyboard Shortcuts
- Supports quick navigation using keyboard shortcuts.
- Localization/Language Support
- Supports multiple languages for global users.
- Mobile Access
- Functional access across tablets and phones.
- System Average Response Time
- Average time for page or action to load.