naic: improve efficiency accuracy and productivity in the ......improve efficiency, accuracy and...

The contents of this presentation are confidential. Copyright © 2017 Workiva.

Improve Efficiency, Accuracy andProductivity in the RegulatoryReporting Process

Lisa BenoitInsurance Industry Subject Matter Expert, Workiva

Discuss key cultural challenges facing the industry

Identify regulatory challenges faced by insurers today

Describe challenges with data management

Discuss process improvement basics

Identify what to look for in a technology solution

Key Takeaways

Statutory Reporting example

Key Challenges

1

Key Challenges

Cultural

• Business model is changing fast• Increasingly connected consumers• Attracting and retaining talent• Emerging technology

2

Key Challenges

Regulatory

• Increasingly complex regulatory environment• New regulations constantly added

◦ ORSA◦ Solvency II◦ International Capital Standards◦ Dodd-Frank

◦ Model Risk◦ Life PBR◦ Captive Insurers◦ DOL Fiduciary Rule

3

Key Challenges

Data Management

• Non-value added time• Lack of true collaboration that adds value• Version control• Data governance leads to risk in reporting• No single source of truth

Key Challenges

REGULATORYCULTURAL

DATAMANAGEMENT

Key Challenges

REGULATORYCULTURAL

DATAMANAGEMENT

DO MORE WITH LESS

So then, what can you do

ProcessImprovement

Create a process improvement culture

90% of all spreadsheets with more than 150 rows have errors*

80% of projects go unaddressed*

Small processes often fly under the radar

Process owners take the lead

Become empowered to be a process improvement junkie

Consider the Universal Process Framework

Gather

Unstructured Data - 90%

Structured Data - 10%

GL &STATPackage

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

Gather

Unstructured Data - 90%

Structured Data - 10%

GL &STATPackage

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

Biggest opportunity for process improvement

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

GL &STATPackage

Unstructured Data - 90%

Structured Data - 10%

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Copy, paste, manually update, andformat text and tables in multiple

documents. Track deliverables, followup on and resolve questions, and

track sign-off.

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

GL &STATPackage

Unstructured Data - 90%

Structured Data - 10%

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

Version 2

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

Version 2

Version 3

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

Version 2

Version 3

Version 4

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

Version 2

Version 3

Version 4

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

In crunch time, itbecomes difficult

to accuratelyincorporate all

changesnecessary while

minimizing manualerror

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Gather Organize

Accounting Operations

Accounting Policy

Actuarial

Corporate Benefits

GAAP Reporting Team

Investments

Legal

Lines of Business

Reinsurance

Risk Management

STAT Reporting Team

Tax

• Trackdeliverables

• Combine data• Perform rounding

Master Excel® File

Copy, paste, manually update, and formattext and tables in multiple documents.Track deliverables, follow up on andresolve questions, and track sign-off.

Reporting Team

Audited FinancialStatement

MD&A

FootnotesTimes 35+ Notes

Times # of Pages

Times 25+ Notes

Review

Version 1

Version 2

Version 3

Version 4

DepartmentalManagementGL &

STATPackage

Unstructured Data - 90%

Structured Data - 10%

Final Review

Version 4

Version Final

Senior Management& External Auditors

File with NAIC andState Regulators

Universal Challenges

Manual effort (roll forward, copy/paste, formatting, tick and tie, etc)

Unintended or missed changes

Data consistency within and across documents

Babysitting data

Version control

Universal Challenges

Review and approval

Timing and filing deadlines

Audit trail (who changed what, when?)

Tracking deliverables and status

Collaboration

Use Technology toYour Advantage

Key attributes to consider

1 Reduce manualeffort

2 Aids in collectionof data

3 Automates statusdashboards

4 Enables truecollaboration

5 Provides trueaudit trail

6 Eliminatesversion control

7 Provides a singlesource of truth

8 Streamlines thereview process

The insurance landscape is continually changing

Cultural and regulatory challenges plague insurers

Data management issues exasperates these challenges

Adopt a process improvement mindset

Wrap-up

Look to technology to assist

The contents of this presentation are confidential. Copyright © 2017 Workiva.

lisa.benoit@workiva.com

Visit Workiva in booth #___

Questions?