Compliance with state & federal insurance and tax regulations is critical for risk mitigation and reputation for insurers. The complexity of regulations is high, especially as it relates to complex universal life policies.
Our client, who used multiple aging legacy systems, identified several gaps in compliance in the handling of guideline premiums, corridor testing, and tax reporting. Our domain led cross-functional agile team delivered 70+ corrections, reviewed compliance for over 55,000 policies, and made corrections to over 1,200 policies with incorrect past processing identified.
The client is the parent of a group of several successful financial services member companies offering a variety of finance, insurance, and retirement products through multiple distribution channels.
Our client used multiple legacy systems for administering policies, a large volume of which were closed book policies issued over the past several years. The policies based on flexible premium products posed significant compliance and legal risk to the insurer due to the following:
Inaccurate policy compliance status and tax reporting Problems in handling guideline premiums and corridor testing and related processing. Lack of automated force out functionality for an excess premium refund Our Solution
Coforge formed a cross-functional agile team for continuous delivery of value. Key actions taken:
Discovering issues – Product-wise discovery Fixing Issues – New Functionality / Fixing Errors Validating Fixes – Automated testing tools used to enhance speed Automated regression process to reduce the risk of rework Post-fix Remediation – Automated Updates & Validation
Following key functionalities were added:
Leveraged unused repetitive payment feature to completely automate force out of value on out of compliance policies Created features and functionality to trigger recalculations to correct Guideline Values Several accelerators were created to meet the needs of the challenge Automated Remediation – Self-Service Compliance Correction Enhanced Actuarial Spreadsheet Generation Delivering More Value Approximately 2,400 Hours of Effort saved through new accelerators developed for validation & remediation Over 1200 policies remediated reducing compliance & legal risk Compliance reviewed for policies of over UL 15 products covering over 55K policies 70+ Fixes Implemented to ensure higher levels of compliance