Solutions. Risk and Compliance Financial Control Solutions - For Insurance Companies

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1 Solutions Risk and Compliance Financial Control Solutions - For Insurance Companies

2 Solutions The business landscape for insurance companies is changing. Investors are demanding protection alongside profit margin growth and exceptional overall company performance and, as a result, your organization is held to higher standards today than ever before. With operations and accounting procedures increasingly cited as a critical area that can be optimized to enable your business to perform more efficiently and with greater transparency how can Fiserv help you implement the operational transformation needed to realize this? With flexible access to accurate transactional data paramount to any initiative, Financial Control Solutions from Fiserv sees solutions, such as transaction matching and reconciliation, case management, account certification and reporting as supporting the three pillars of any financial or operational transformation: Pillar 1: A Driving Need to Increase Operational Efficiency The need for cost reduction and increased profitability means that speed and standardization of transaction processing, along with accurate and timely financial reporting, are driving organizations to operate a continuous program of process improvement to illustrate ongoing efficiencies. Shareholders and auditors are also asking for more timely key metrics and data sets that verify the true financial health of your organization. Much of this data needs to be processed, analyzed and presented from the finance department, making financial control a crucial element needed to achieve a more accurate picture in a climate of increasing transaction volumes and globalization. Pillar 2: A Balancing Act to Optimize Operational Risk Any organization must accommodate a certain amount of risk within their operations to maximize performance and achieve greatest profitability. At the same time, loss exposure is expected to be minimized. To manage this balance, knowing your risk and understanding your exposure is a vital aspect of any organization s strategy, and finding the middle ground that satisfies both sides is desirable. Only when risk is defined, quantified and assessed for acceptability, can the optimization of risk be possible. Financial Control Solutions can help mitigate risk through rules-driven identification and escalation paths coupled with detailed analysis of your exposure. Pillar 3: A Mandate to Increase Compliance and Control Automation levels within the finance department of the financial services sector are reasonably high. But leveraging these operations and taking them the extra mile to automate complementary processes, such as compliance and audit, is an area that traditionally lags behind. Whether you are mandated by external regulations such as Sarbanes Oxley, MiFID or Solvency II; have stringent internal audit requirements; or prefer to self-regulate, the need to impose robust, repetitive, auditable processes and procedures that segregate duties, automate approval processes and alert irregular

3 practices are increasing. Financial Control Solutions do not stop where the operational remit stops; our approach is to integrate compliance capabilities and procedures into our solutions to take automation beyond operations and mitigate compliance risk. Financial Control Solutions have offices offering 24x7 support in the following international locations: Atlanta U.S. Baltimore U.S. London UK and Ireland Luxembourg Continental Europe, Eastern Europe and Russia Dubai Middle East and South Africa Sydney Asia Pacific Singapore Asia Pacific Achieving These Benefits for Your Organization Transaction process management serves as a vital control function of any organization. With the importance of data integrity being paramount to the success of any deal or transaction, Financial Control Solutions serve as a foundation for ensuring business efficiency, risk management and regulatory compliance for organizations throughout the globe. As our business grew and transaction volumes increased, we needed a solution that could centralize the reconciliation process, with the scalability to provide for future expansion across potential new business lines. Financial Control Solutions met all our requirements and we were particularly impressed by the dashboard technology, which delivers a synchronized view of all cash and securities activities across our organization. This will help us to increase operational control and deliver improved service levels to our clients. We are confident we have deployed best-ofbreed technology, from a global market leader. Skandia Our unique approach comprises five areas within which we specialize: Transaction Matching A powerful, state-based processing engine that employs configurable rules to comprehensively check large quantities of financial data for accuracy against anticipated results. Account Reconciliation Effective risk management and compliance controls through automation of the account and balance sheet reconciliation processes. Supports all account and transaction types and is fully multi-currency enabled.

4 Case Management Fully audited workflow-driven case management environment ensuring consistent and timely identification of exceptions as well as consistent application of best practice. Account Certification and Balance Sheet Attestation Fully automated, audited review and approval process for account certification and balance sheet attestation. Performance Management and Reporting Capture and monitor key performance, risk and control indicators over time. Dynamic reporting capabilities for displaying and distributing point-in-time financial data also available. Reconciliation Activities for Insurance Include: Bank accounts Agent collections Underwriting payments Premium accounting funds Commission payments Premium collection/payments Direct debit rejections Inter-system reconciliations (e.g. from sub-system or data warehouse to general ledger or enterprise resource planning system) Inter-company reconciliations Balance sheet movements Securities reconciliations for the investment or financial services sectors Custody reconciliations (via SWIFT) Suspense account reconciliations Deficiency claims from Revenue and Customs Overpayments on annuity policies Duplicate claims (for fraud purposes)

5 Flexible Implementation Utilizing Six Sigma methodology, Fiserv has developed a flexible implementation model called Adaptive Implementation Methodology, which guides your company from stage one of software installation to go-live status. We ve designed Adaptive Implementation Methodology as a stepby-step process to ensure that you have everything you need to utilize our innovative solutions from the moment of purchase to complete implementation. The approach is flexible enough to integrate with your own methodology, ensuring that you are able to measure your success internally while working within our proven framework. Solutions are able to be implemented quickly and support all industry standard platforms and databases. Case Study - Global Insurance Group Fiserv has worked with this market leader in life insurance, health insurance, general insurance and pensions for the last five years. Growth, mergers and acquisitions had seen a large increase in transaction volumes with some 50 legacy systems performing reconciliations across the group. The Fiserv solution has proved to be an effective, highly efficient solution for the organization s increasing transaction volumes. Typically, the system matches around a million transactions a day, introducing new levels of accuracy across a broad range of reconciliation types: intercompany, duplicate claims, bank accounts, commission payments, agent collections, direct debit rejections and custody. The operational transformation and ROI achieved has meant that Fiserv is now the preferred supplier across Financial Control Solutions. Delivering Return on Investment (ROI) We know that you need to be able to show predicted ROI on any investment you make. While every project is unique, typical analysis from customer implementations include: Average reconciliation headcount reallocation/reduction of 79 percent of staff Average exception management headcount reallocation/reduction of 17.5 percent of staff Average reduction in lost interest and/or external capital allocation costs of 38 percent based on an average cost of funds at 1.86 percent Up to 25 percent reduction in audit costs based on automated account certification and electronic storage of data

6 Fiserv, Inc. (NASDAQ:FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. The Advantage of Financial Control Solutions Financial Control Solutions helps our customers increase operational efficiency, mitigate risk and enable compliance through a combination of innovative software, industry expertise and collaborative partnership. We apply our knowledge and experience, coupled with your business best practices, to maximize your profitability and performance potential and allow you to scale for growth. Our goal is to enable you to achieve measurable return on investment by capturing and analyzing key data from across the organization through systems and technology and ensure it is disseminated to the right people, at the right time, in the right format. Connect with Us For more information on Financial Control Solutions, please contact us at or visit Financial Control Solutions Enable You to: Reduce risk Increase efficiency Lower costs Scale for growth Increase the transparency and accuracy of the transaction reconciliation process Ensure adherence to regulatory and compliance mandates both internal and external To manage the lifecycle of your transactions with power and flexibility, and give you control of your true financial picture from Transaction Matching and Account Reconciliation to Case Management and Reporting and Performance Management look no further than Financial Control Solutions.

7 Fiserv, Inc. 255 Fiserv Drive Brookfield, WI Fiserv is a registered trademark. Other products referenced in this material may be trademarks or registered trademarks of their respective companies Fiserv, Inc. or its affiliates COL 04/09.