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, letβs 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 yβknow, 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 ingredientβtrade settlements, cash moves, valuations, you name itβis accounted for. Service providers should do a deep dive into reconciling stuff like income, trades, cash, positions, and pricing. Imagine them going, βDid I miss something?β 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. Itβs like those moments when your phone automatically syncs and you donβt 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 saysβitβs like playing matchmaker for data.
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Cash Reconciliations to Custodians: Ever compared cash balances to your statements? Itβs that, but maybe with a tad more pulling out of hair when things donβt match.
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MultiβParty Position/Par Reconciliations: This oneβs cross-checking positions and par values with a bunch of different sources. Itβs like you, your friends, and your friendβs friends trying to agree on pizza toppingsβmismatches need sorting out.
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Missing/Stale Prices and Price Variances: Spotting securities with stale pricesβyou know, stuff thatβs been sitting there for too long like milk thatβs past its prime. If somethingβs 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, itβs like getting stuck with an expired couponβtotally buzzkill.
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Due & Accrued Reconciliations: Double-checking that accrued interest and other fees arenβt just floating around unclaimed. You donβt want any surprise parties, financially speaking.
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Market Value Reconciliations: Hereβs where they match up market values just like comparing your playlist with your moodβeverythingβs gotta align.
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MonthβoverβMonth Earned Income: Theyβre doing the compare-dance with last monthβs income to spot anything funky.
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ClientβProvided Impairments: Validating impairment figuresβbasically making sure nobody scribbled them on a napkin.
- General Ledger to Core Accounting Reports: Itβs a big olβ mapping party ensuring everything from the ledger agrees with system reports. Think of it like syncing your workout playlist to your run.
Oh! And donβt forget those other reports they throw in. Itβs 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 RollβForwards, tracing cash flows like breadcrumbs.
- MonthβoverβMonth Earned Income, flagging any sudden moves.
- Price Variance Reports, keeping tabs on price jumps.
- Amortized Cost RollβForwards, 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 thatβs as smooth as a jazz night. The SS&C folks do this kinda deep dive every month, making sure youβre not stuck doing tedious spreadsheet stuff. Who even likes those things?
If youβre curious about how this SS&C magic can jazz up your month-end close, give them a shout. Letβs keep those portfolios less nightmare and more daydream.