Alright, so imagine this: insurance investment portfolios are like this big, tangled mess. More complex than figuring out why your cat sleeps all day but still has energy to sprint at 3 a.m. Seriously, what’s up with that? Anyway, let’s talk about ten crucial data checks that your insurance accounting service folks absolutely gotta do. It’s all about nailing that month-end close without a hiccup, and y’know, providing a bunch of reports to make sure everything gels nicely.
Picture it like this: a rock-solid month-end close is sorta like baking a cake. You gotta make sure every ingredient—trade settlements, cash moves, valuations, you name it—is accounted for. Service providers should do a deep dive into reconciling stuff like income, trades, cash, positions, and pricing. Imagine them going, “Did I miss something?” like three times just to be sure.
So, why bother embedding these controls? Well, it speeds things up, makes the process see-through, and gives everyone peace of mind. Nobody on your team will need to scramble around with extra reconciliations or massive data reviews. It’s like those moments when your phone automatically syncs and you don’t have to think about it. Easy peasy.
Now, into the nitty-gritty of those data checks:
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The Aged Income and Unsettled Trades Review: This one’s all about tracking income receivables that are taking their sweet time. Matching up internal trade blotters with what the custodian says—it’s like playing matchmaker for data.
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Cash Reconciliations to Custodians: Ever compared cash balances to your statements? It’s that, but maybe with a tad more pulling out of hair when things don’t match.
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Multi‑Party Position/Par Reconciliations: This one’s cross-checking positions and par values with a bunch of different sources. It’s like you, your friends, and your friend’s friends trying to agree on pizza toppings—mismatches need sorting out.
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Missing/Stale Prices and Price Variances: Spotting securities with stale prices—you know, stuff that’s been sitting there for too long like milk that’s past its prime. If something’s off, it gets the side-eye for further investigation.
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Complete NAIC Ratings from the Securities Valuation Office: Making sure every security has a legit NAIC rating. If not, it’s like getting stuck with an expired coupon—totally buzzkill.
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Due & Accrued Reconciliations: Double-checking that accrued interest and other fees aren’t just floating around unclaimed. You don’t want any surprise parties, financially speaking.
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Market Value Reconciliations: Here’s where they match up market values just like comparing your playlist with your mood—everything’s gotta align.
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Month‑over‑Month Earned Income: They’re doing the compare-dance with last month’s income to spot anything funky.
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Client‑Provided Impairments: Validating impairment figures—basically making sure nobody scribbled them on a napkin.
- General Ledger to Core Accounting Reports: It’s a big ol’ mapping party ensuring everything from the ledger agrees with system reports. Think of it like syncing your workout playlist to your run.
Oh! And don’t forget those other reports they throw in. It’s just extra peek-behind-the-curtain stuff to make you feel all warm and fuzzy about those checks.
Stuff like:
- Market and Book Value changes.
- Cash Roll‑Forwards, tracing cash flows like breadcrumbs.
- Month‑over‑Month Earned Income, flagging any sudden moves.
- Price Variance Reports, keeping tabs on price jumps.
- Amortized Cost Roll‑Forwards, mapping cost changes over time.
- Impairment and Watch List Reports, for all your at-risk securities.
By putting these controls together, insurance accounting providers give you a month-end close that’s as smooth as a jazz night. The SS&C folks do this kinda deep dive every month, making sure you’re not stuck doing tedious spreadsheet stuff. Who even likes those things?
If you’re curious about how this SS&C magic can jazz up your month-end close, give them a shout. Let’s keep those portfolios less nightmare and more daydream.
