Insurance brokers who have prior experience in the insurance field would know the critical value of insurance reconciliation. If you are an experienced insurance broker, you’re free to skip the introduction part. But if you’re a newbie or if you want to know how reconciliation influences your business, continue reading on.
Why is account reconciliation important in the industry?
Account reconciliation is done to compare the transactions you have recorded in your company’s financial accounts with the statements from external sources like banks or other financial institutions. This ensures that account statements balances with each other. It is vital if you want to produce accurate, reliable, and top-quality financial statements.
To put it in simpler terms, you compare your company’s account records with bank records and find if everything matches. Got it?
In the case of insurance, reconciliation is the most needed process to avoid fraudulent or extra-paid credit card transactions. We have heard so many sad stories from insurance agencies and brokers who were experiencing errors in transactions. They wish they were doing reconciliation.
For better understanding, let’s get into a scenario.
Scenario 1: The amount to be paid for buying a policy is 4000/- and it was mistakenly written as 5000/- in the invoice statement. Verdict: Loss
Scenario 2: You have purchased 8 different policies from one insurance agency but didn’t raise invoice against every policy you have purchased (unknowingly). Verdict: Loss
Performing reconciliation will save you from these worse situations. You can keep track of all transactions and reconcile balances to keep you from committing human errors or missing a payment.
So, if you need your financial based reports to be accurate, you have to reconcile your accounts. In the beginning, you can update each and every transactions in your excel sheet. As the volume of policies and claims increases, insurance reconciliation becomes time-consuming and complicated. After listening to many insurance agencies and brokers, we realized that this needs to be resolved. That’s when we decided to automate reconciliation in our existing insurance broking software – Sibro. Keeping the issues in the mind, our team worked for a while and came up with an optimized automatic reconciliation.
Now, Sibro automates the entire reconciliation process saving you the massive amount of time and effort. So whatever cash transaction occurs in your company, it will be recorded in Sibro. It will compare your company accounts with the bank records and provide you a reconciliation statement. Using this statement, you can find if both records balance each other or not.
How Sibro’s automated reconciliation keeps you away from danger?
- It helps you find hidden expenses which you might not you know you are paying.
- It helps you avoid human errors.
- It reduces the financial risk to zero level.
- It offers optimised and consistent report regardless of the number of policies and claims.
- It saves your skilled employees from doing these repetitive tasks.
Today, our clients are happy and more satisfied with this automation. They claim that Sibro not only takes care of reconciliation but also makes every process quick and hassle-free.
Are you an insurance broker or running an insurance agency? Don’t delay till your business gets drowned in such problems and get a free trial now.