Enhance Financial Stability with Centri’s Outsourced Insurance & Reinsurance Accounting Services

Insurance companies face accounting complexities every day. Navigating these challenges efficiently is crucial for maintaining financial health and regulatory compliance. Outsourcing finance and accounting services can provide significant benefits, including cost savings, increased productivity, and access to specialized expertise and best practices from other companies.

Why Outsource Accounting Services? 

Outsourcing your accounting services from Centri can help you overcome the challenges of hiring and retaining internal talent.  Our highly trained and experienced finance and accounting professionals can seamlessly integrate into your organization, seasoned in the latest U.S. GAAP and statutory accounting guidance, and freeing up your existing staff’s productivity. Our team is comprised of industry-experienced and qualified experts with relationships with former insurance regulators and the NAIC to help meet your short- or long-term finance and accounting needs.

How Centri Can Help

Centri’s Insurance Accounting Professionals are extremely seasoned in leading and preparing all aspects of financial reporting as it relates to insurance and reinsurance and its accounting complexities in both U.S. GAAP and Statutory Reporting.  Our experts have nearly 40 years of combined financial reporting experience, including active relationships with the NAIC, former state insurance regulators, and alliances with experienced actuaries across multiple product lines. 

Below are some of the ways in which we can help you navigate the complexities of U.S. GAAP and statutory insurance and reinsurance accounting:

• Preparation of all subparts of Schedule F (Property & Casualty Insurers) or Schedule S (Life & Health Insurers)
• Required accounting and disclosures for FASB ASU 2018-12 (i.e. “LDTI”) for life insurers
• Preparation of financial statements required under the Bermuda Monetary Authority or other international standards for accounting for offshore reinsurers
• Funds withheld accounting and settlement for reinsurance relationships, including readiness for the new funds withheld investment disclosures for statutory reporting
• Planning, conversion, and supporting implementation of reinsurance accounting platforms to automate processes 
• Assessing treaty compliance with assumed and ceded reinsurance relationships
• Liaise with state regulators, rating agencies, and independent external auditors on reinsurance-specific questions and feedback

Additionally, below is a general overview of the services we provide to insurance companies.

Reinsurer Placement

• Act as a project management office for obtaining and preparing financial deliverables relating to reinsurance placement from prospective reinsurers
• Benchmark placement and terms of prospective treaties in the same industry
• Participate in meetings with prospective reinsurance broker with Management
• Support preparation of Board Materials regarding reinsurance placement

Assumed Reinsurance

• Cash management, including application, open balance aging, payables, receivables
• Broker and cedant reconciliation, including open and unsettled balances, and case reserves
• Invoice processing and recording for Quota Share, Facultative, and XOL contracts in accordance with termination provisions
• Calculation and recording of profit commissions
• Processing of reinstatement premiums
• Accounting audits of cedants where needed
• Retrocessional accounting and recoverable management
• Inter-company cession management
• Trust/LOC collateral management
• Preparation of accounting data for commutations

Direct Insurance (Ceded)

• Collateral management
• Cessions to captives
• Coordinating the release of actuarial data to captive managers
• Processing account’s current or other broker statements
• Insuring the timeliness of data feeds from TPAs
• Reconciling premiums and losses
• Assembling all necessary data in response to data calls from regulate
• Managing premium audit function and processing invoices
• Accounting audits of NIGAs, coverholders, and TPAs as needed
• Support timely resolution of any disputed recoverables

Financial Reporting

• Provide reports and dashboards to assist the CFO in quarterly and annual closing
• Participate in annual statement preparation
• Manage all cash operations, fixed assets, and accounts payable
• Record and report monthly investments for collateral and funds withheld reporting.
• Creating operating efficiencies, improved workflows, and innovative automated solutions
• Improving data integrity
• Research and document U.S. GAAP and statutory accounting treatment of proposed reinsurance agreements for Management’s approval
• Support remediation of insurance financial exam/internal audit reviews relating to the insurance and reinsurance process
• Support Management’s design, benchmark, and recommend improvements to reinsurance SOX and MARSOX controls. Forecast and advise on reinsurance recoverables and risk-based capital implications related to reinsurance

Deposit Accounting

• Facilitate the assessment of insurance risk transfer
• Valuation/re-valuation of deposit assets and deposit liability and amortization patterns

Reinsurer Quality Control Reviews

• Facilitate completion of request list for third-party reinsurer reviews, supporting the preparation of deliverables as necessary
• Act as a project management office supporting cost-effective facilitation of deliverables
• Support Management in the remediation of findings from prior reviews

If youare looking for reliable, efficient, and cost-effective insurance accounting services, Centri is here to help. Contact us to learn more about how we can support your finance and accounting needs.