I-MACC : General Insurance and Reinsurance System
I-MACC : General Insurance and Reinsurance System I–MACC is an Integrated General Insurance and Re-insurance system designed to handle all the basic functions of a general insurance company. It offers the following features:
- Multi company, multi branch, multi outlet.
- Trilingual screens.
- Variable screen and reports customization (Headers and Screens colors)
- Name dictionary (Arabic – English)
- Use of population ID to centralize client and broker data, suppliers and other third party accounts.
- Comprehensive client and broker profile data.
- Multi level security which propagates into internal authority and functions.
- Consolidation of covers under a main class of business.
- Complete cycle from proposal, policy, claims, to a renewal which means no data redundancy or unnecessary data entry.
- Integration as early as the design stage.
- Accounting interface has several levels.
- Automatic generation of broker commissions.
- Automatic premiums, company commission and net payable are reported for every re-insurer.
- Automatic settled claims reporting to the re-insurers.
- Maintenance of the current policy status ‘CPS’ after each endorsement. The status images can be retrieved for claim verification or as needed.
I–MACC consists of the following main modules:
- Proposal Preparation and Printing.
- This is the natural start of the insurance production cycle. The policy details are entered into the system and a complete proposal is prepared including all the covers, special conditions, attachments and financial conditions. The proposal has the same format as the policy, however it has no accounting or technical effect. The proposal can undergo as many changes as required before being approved and given a policy number and interfaced automatically with the accounts receivables and payable.
- Production - Printing of Policy and Interface to Receivables and Payables.
The recording of the policy is essentially serving three distinct goals:
- For accounting purposes so that the proper production reports by class of business can be obtained with the link to the accounts. The appropriate customer debit note and broker credit note are printed to complete the link with the accounts receivable and the broker accounts payable.
- For the printing of the policy with the associated annexes. The system here has extensive facilities to put standard text or clauses, or to add special texts to form the complete policy.
- For technical aspects policy including the overall treaty distribution and the details of the cover conditions and their rates, the interest code(s) and any other technical data that may be required for any specific class of business.
The data prepared here is required when we go to the re-insurance phase and later to the claims and statistics. The customer and broker accounts are updated online upon recording of the policy. All other general and re-insurance accounting is kept to the end of month closing. Once the production is running smoothly the system controls are introduced to lock the data already interfaced with the general accounts and allow entry of only current month policies.
At the end of the month production reports are produced by various alternative details and summaries. From these reports the monthly analysis of production can be produced. During the integration phase journal vouchers may be generated automatically.
The system has an optional feature which allows the users to maintain the image of the policy as it is after every endorsement. This feature is useful for recalling the status of the policy to verify the validity of a claim. The latest copy is also used in the renewal stage.
The concept of products has been implemented to allow for mechanized issuing of standard products with minimum user intervention. If allows for setting the covers and the rates for a given product thus minimizing user intervention.
Renewal Reminders and Renewal cycle.
The renewals cycle is dynamic. The user can specify the date and range of policies for which renewals are to be reported (by class of business, producer or policy number). The reminders can be printed and after a follow up the renew/not renew decision is brought back and the production file is updated accordingly. An outstanding list of expired/not renewed policies can also be produced.
The re-insurance module has very flexible features that allow the company to :
- Maintain several facilities for the same class of business.
- Start the facilities at any date during the year.
- Have several facilities (current and past underwriting years) active concurrently.
- Have multi-risk placements for a single policy.
- Allocate the re-imsurance online for special distribution or in batch mode.
- Handle several types of treaties: proportional, non proportional, excess, net of premium.
- Maintain a proper referencing for all facultative placements. A credit note is also issued automatically along with a closing note.
- Interface all re-insurance accounting to the accounts payable module for appropriate follow-up and settlement with re-insurers.
The claims module offers the following features :
- Claims are entered according to the corresponding class of business. A claim estimate is required but it can be continuously updated.
- If there are re-insurers requiring claim notification an automatic note is generated per re-insurer.
- Partial payments can be made and the claim outstanding balance automatically updated.
- The system maintains the history of the claim including reserve and outstanding amounts to allow for analysis of reserve revisions history.
- For re-insurer reporting, payments made are auto allocated as per policy distribution and according to re-insurer share at time of claim occurrence.
- In addition to regular reporting of claims paid and recoveries, quarterly reports are issued for outstanding claims and estimated outstanding amounts.
- Rejected claims or claims with no further follow-up are also reported.
System Integration. The integration of the system modules bas been built during the design stage. All required data has been set up in the system data base to ensure the uniqueness of any figure. The system provides for easy access from the various modules for regular processing as well as for statistics and ad hoc report generation.
Another form of integration is also maintained at the accounting interfacing which has several levels: The first level is at the production stage; The next step in integration is at the end of the month when the production is analyzed by class of business by currency, by broker and for production/ cancellation separately; The third level of accounting integration is obtained from the re-insurance placement reports, at this stage the net monthly production premiums obtained in the previous stages are re-allocated to the various re-insurers according to the placement, so for every re-insurer the net premiums, company commission, stamps and net payable are reported.
Broker/Producer handling and statistics.
Additional detailed data on brokers/producers can be maintained such as normal commission rates agreed upon per class of business. When processing the policy this data is used to automatically complete the commission due. When combined with the automated computation of the policy earning it becomes possible to compute the net profit per policy per broker. The analysis of profitability per broker/producer and class of business become all possible.
The ultimate result and benefit of an integrated computer system is perhaps not only the ability to automate the policy production and monthly reporting but also in the ability to produce a wide range of statistical and technical reports. Some of the reports I-MACC offers are:
- Profitability per class of business or per broker/producer, per client.
- Ranking of customers by turnover or by net policy margin.
- Loss ratio analysis by client or by class of business or by broker/producer, or by facility. (Loss ratio analysis can be on : client premium, net premium or net to re-insurer premium basis).
- Risk profile per class of business.
- Risk profile by siesmic zones.
- Portfolio analysis by : client, broker, class of business, facility and underwriting year...
- Motor vehicule special statistics by siesmic type/make, year of manufacture, horsepower etc.
- Collections, accounts receivable and payables.
This advanced module combines the receivable and payable functions because in the insurance accounting these 2 aspects are closely linked.
During policy creation both aspects of this module are affected:
- The client or broker is debited with the premium and the broker is credited with the commissions. The collections can also affect both receivables and payables when the broker is settling a policy.
- All accounts are maintained by policy, broker, client and due date. Subsequently settlements affect the same levels.
- Reporting of statements and detailed ageing of receivables can be by combination of broker, client, policy, class of business or date.
- The system will also receive all movements from claims.
- The re-insurance accounts payable is also handled within this same module providing for the follow-up of re-insurance payables by re-insurance company and treaty.
General accounting for insurance plus budget and financial reporting.
The general ledger accounting system for insurance environment companies comprises the standard accounting system plus extra features required for general insurance. These features include the capture of class of business, policy number, brokers, in the movements as well as additional data at the ledger level.
The insurance features provide the link for interface between the production/claims modules and accounting. Budget can be setup by account and cost center and a variety of financial reporting can be produced.
Additional modules are also available: consolidations, automatic allocation templates, prepaid / accrual / recurring vouchers, bank statement reconciliation, follow-up of accounts receivable at several levels.