In most sectors, bank reconciliation involves matching bank statements with cash transactions. But for insurance companies and mutuals, the challenge is quite different: it's a true accounting reconciliation, where each bank transaction must find its precise corresponding entry in the premium, benefit, or membership contract records.
A complexity specific to insurers
Massive and heterogeneous volumes:
• Hundreds of thousands of monthly transactions (SEPA direct debits, benefit payments, financial investments).
• Each bank transaction can involve hundreds of members or contracts.
A discrepancy between bank and accounting records:
• Receipts and payments do not always follow the same schedule (delayed rejections, cancellations, manual corrections).
• A single bank transaction may require breakdown into dozens of accounting entries.
Siloed 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 challenge:
• The ACPR and Solvency II mandate complete and impeccable traceability.
• Reconciliation becomes a key internal control process.
Why traditional cash management solutions are not enough
Most treasury management solution providers excel at liquidity management: multi-bank consolidation, forecasting, and cash management. However, when it comes to addressing accounting and insurance business aspects, their limitations become apparent
• Matching limited to simple “transaction vs. transaction” banking.
• No sufficiently powerful rules engine to handle complex allocations.
• Little to no native integration with insurance business systems.
• A deliberately limited offering: advanced accounting reconciliation is not included because it is too specific and does not fit within the proposed standard due to its complexity.
Towards a new approach to reconciliation
To meet the needs of insurers, the NEOFI Solution includes a high-performance reconciliation module that combines:
• An intelligent reconciliation engine capable of handling conditional rules and complex allocations,
• Business connectors to insurance systems and accounting ERPs thanks to its integrated ETL
, • Granular discrepancy management that allows for rapid identification, justification, and, most importantly, correction via an automated process or one 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 insufficient to address this issue. Advanced solutions (like those offered by NEOFI) can connect banking, accounting, and the core of the insurance business, allowing you to regain control and ensure the reliability of the process.
