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Vietnamese For the insurance industry, the transition from manual to automated fund allocation is not just a technological upgrade; it’s a strategic imperative. It enables insurance companies to achieve unparalleled accuracy, efficiency, and compliance in their financial operations.
This blog explores how leveraging advanced automation tools like SunSystems Corporate Allocations and Q&A modules can revolutionize this process.
Table of Contents
- What Insurance Fund Allocation Is & Why It Matters
- How SunSystems Corporate Allocations Automates Insurance Fund Allocation
- How Infor Query & Analysis Empowers Automated Fund Allocation
- Automated Fund Allocation vs. Manual Fund Allocation
What Insurance Fund Allocation Is & Why It Matters
In insurance, fund allocation refers to distributing the company's overall financial resources into designated categories. These categories typically represent future obligations (such as reserves for claims payouts), operational needs (administrative expenses), and potential profit (shareholder funds).
Fund allocation ensures the company has enough money set aside for each purpose. In addition, fund allocation also helps insurance companies meet regulatory requirements and ensure compliance with insurance regulations.
Automated fund allocation ensures that every financial detail is meticulously recorded, tracked, and analysed, minimizing errors and optimizing workflow.
This transformation allows insurance companies to respond swiftly to changes, maintain regulatory compliance, and manage resources more effectively, ultimately leading to enhanced financial stability and business growth.
How SunSystems Corporate Allocations Automates Insurance Fund Allocation
Infor SunSystems has been a trusted financial management solution in the insurance sector for over four decades. Despite its extensive track record, many industry professionals are still unaware that SunSystems includes a powerful automated fund allocation capability that can save you time, improve accuracy, and streamline your insurance accounting processes.
Corporate Allocations is a module in SunSystems designed to support the allocation of costs and revenues in businesses.
When using this module, insurance companies can easily allocate their funds to different departments, projects or locations in a more efficient, accurate and automated way, thereby reducing errors and optimizing workflows.
In terms of the general ledger, when data is entered into the general ledger with SunSystems, that data is split by fund code, for example: Shareholder fund, Policy Holder Fund and other funds; for data that cannot be confirmed by fund code, it will be entered into the Common fund.
There are 4 data sources that can be entered into the general ledger, and then the data will be split by type and fund code as shown in the figure below.
Unconfirmed data in the Common Fund will be allocated and split into funds at the end of the month as follows:
Here is what the Corporate Allocations module of SunSystems can do:
- Allocate account data in proportion to a predetermined ratio:
- Fixed ratio
- The ratio is the data generated by another account
- Ratio provided by the user at the time of allocation
- Automatically account for recurring transactions at regular intervals
- Automatically transfer all or part of the data of this account to another account
- Automatically post interest to the general ledger.
The module can also be used in conjunction with Infor Query & Analysis (Q&A) to increase the accuracy and automate data entry and verification when allocating funds.
In addition, this tool also allows businesses to set up business rules to prevent incorrect fund codes from being entered.
How Infor Query & Analysis Empowers Automated Fund Allocation
Infor Query & Analysis (Q&A) is a business intelligence and reporting tool that gives you the information you need, where and when you need it, fast and efficiently.
It can significantly enhance automated fund allocations within SunSystems Corporate Allocations module in several ways:
1. Increased Accuracy through Data Validation
Data Cleansing and Standardisation: Q&A allows you to define data validation rules to ensure data consistency and eliminate errors before they impact allocations. This can involve checking for missing values, and invalid formats, or ensuring data falls within expected ranges.
Data Verification and Reconciliation: Q&A facilitates comparisons between different data sources relevant to fund allocation. You can identify discrepancies and inconsistencies before finalizing allocations, improving overall accuracy.
2. Streamlined Automation with Business Rules
Pre-defined Allocation Rules: Q&A empowers you to define business rules that govern the allocation process. These rules can be based on various criteria, such as specific account codes, department affiliations, or pre-determined ratios. This automation reduces manual intervention and the risk of human error.
Conditional Allocation Logic: Q&A enables setting up conditional logic for fund allocation. For example, allocations might be adjusted based on exceeding a certain expense threshold or achieving specific performance targets.
3. Improved Efficiency and Visibility:
Automated Data Extraction and Transformation: Q&A can automate data extraction from relevant sources within SunSystems. This eliminates the need for manual data manipulation and streamlines the allocation process.
Customizable Reports and Dashboards: Q&A allows you to generate reports and dashboards that provide insights into the allocation process. You can track trends, identify outliers, and monitor the effectiveness of allocation rules. This transparency facilitates informed decision-making when managing funds.
4. Enhanced User Control and Governance:
User Access Management: Q&A allows you to control user access to specific data and functionalities. This ensures that only authorised personnel can modify allocation rules or manipulate data, maintaining data security and integrity.
Audit Trail and Traceability: Q&A keeps an audit trail of all data manipulations and rule changes within the allocation process. This allows for easy tracking of historical allocations and facilitates regulatory compliance and audit readiness.
In short, Infor Q&A is a powerful companion to SunSystems' Corporate Allocations by improving data quality, automating tasks, and providing valuable insights. This combination empowers insurance companies to achieve a more accurate, efficient, and transparent approach to automated fund allocation.
Automated Fund Allocation vs. Manual Fund Allocation
Manual fund allocation using tools like Excel often leads to data errors and fails to reflect allocation ratios and associated account groups.
When allocation data from Excel is imported into your accounting system, you can only upload the final result, not the entire allocation process. Therefore, when accounting staff transfer information, it can easily lead to discrepancies in results.
On the other hand, automated fund allocation through SunSystems Corporate Allocations system allows the entire process to be stored and reflected in the system, easily traceable, extracted and tracked later.
Advantages of automated fund allocation compared to manual fund allocation:
- Save time and effort: Automated fund allocation saves time and effort compared to manual fund allocation. Calculating and allocating expenses and revenues is faster and more accurate.
- Ensure accuracy: Automated fund allocation helps ensure accuracy and avoid errors during the allocation process as procedures are established and performed according to clear and consistent rules.
- Streamline processes: Automated fund allocation helps optimise accounting and financial processes in the enterprise, minimizing manual operations and saving costs.
- Easy to manage: Automated fund allocation makes it easy to manage expenses and revenues in the enterprise, which in turn helps to manage and operate the business more effectively.
- Respond quickly: Automated fund allocation enables businesses to respond quickly and flexibly to changes in expenses and revenues, helping to ensure business agility and resilience.
- Gain transparency & Boost Compliance: Automated fund allocation tracks your allocations effortlessly and gains better visibility into your finances, which in turn helps meet regulatory requirements with confidence.
In conclusion, automating fund allocation with SunSystems' Corporate Allocations subsystem offers a powerful solution for insurance companies seeking to streamline their processes, improve accuracy, and gain better control over their finances. By leveraging automation, you can free up valuable time for your accounting team, ensure regulatory compliance, and make data-driven decisions with confidence.
Are you ready to see how SunSystems can transform your insurance accounting? Request a tailored demo today and take the first step towards a more efficient, accurate, and future-ready financial management system.
