In most sectors, bank reconciliation involves matching account statements with cash entries. But for insurance companies and mutual insurance companies, the challenge is quite different: it involves a true accounting reconciliation, where each bank flow must find its precise correspondence in the entries for premiums, benefits, or member contracts.
A complexity specific to insurers
Massive and heterogeneous volumes:
• Hundreds of thousands of monthly transactions (SEPA direct debits, benefit transfers, financial investments).
• Each bank flow can concern hundreds of members or contracts.
A gap between the bank and accounting:
• Collections and payments do not always follow the same schedule (delayed rejections, cancellations, manual corrections).
• A single bank transaction may require a breakdown into dozens of accounting entries.
Partitioned systems:
• Core insurance system, accounting ERP, treasury tool and banks rarely speak the same language.
• Reconciliation requires complex transformations (ISO20022 formats, analytical rules, business repositories).
A regulatory issue:
• The ACPR and Solvency II require complete and flawless traceability.
• Reconciliation is becoming a key process of internal control.
Why traditional cash flow solutions aren't enough
Most treasury solution providers excel at liquidity management: multi-bank consolidation, forecasting, cash management. But when it comes to the accounting and insurance business level, their limitations become apparent:
• Matching limited to simple “movement vs. movement” banking.
• No rules engine powerful enough to handle complex breakdowns.
• Little or no native integration with insurance business systems.
• A deliberately limited offering: advanced accounting reconciliation is not in the catalog because it is too specific and does not fit into the proposed standard because it is too complex.
Towards a new approach to rapprochement
To meet the needs of insurers, the NEOFI Solution includes a high-performance reconciliation module which combines:
• An intelligent reconciliation engine capable of managing conditional rules and complex breakdowns,
• Business connectors to insurance systems and accounting ERPs thanks to its integrated ETL
• Detailed management of discrepancies which allows them to be identified quickly, justified and above all corrected via an automated process or requiring validation.
• Native interoperability with banks via standardized formats (camt.053, camt.054, pain.002, etc.).
Bank and accounting reconciliation is not a simple technical operation: Traditional treasury tools are not enough to address this issue. Advanced solutions (such as those offered by NEOFI) are capable of connecting banking, accounting, and the core insurance business, allowing you to regain control and make the process more reliable.
