Blog Post
Claims Reconciliation for Insurance Companies
For insurance carriers, data integrity is everything. When millions of dollars in claims are processed by Third-Party Administrators (TPAs) and brokers, ensuring that your internal ledger matches external reports is critical. Claims reconciliation is the complex process of verifying this data, and for many insurers, it is still a manual nightmare involving massive "bordereaux" spreadsheets.
The Challenge of Bordereaux Management
Insurance data is fragmented. Coverholders and TPAs send monthly reports (bordereaux) detailing premiums collected and claims paid. These reports come in different formats—Excel, CSV, PDF—and often contain thousands of rows.
The finance team's job is to ingest this data and match it against:
- The Cash: Did the TPA actually wire the funds they said they collected?
- The Policy System: Does the claim align with an active policy?
- The Reinsurance Contract: Are we recovering the correct amount from reinsurers?
Why Manual Reconciliation is Risky
Relying on Excel macros to clean and match bordereaux files is unsustainable.
- Data Latency: It takes weeks to process monthly reports, meaning you are always looking at old data.
- Compliance Risk: Regulators (like Solvency II or IFRS 17) require strict data lineage. Excel cannot prove who changed a cell.
- Leakage: Without automated matching, small discrepancies in premium calculations or claims payments go unnoticed, leaking profit.
Automating Insurance Reconciliation
Specialized software like Reconwizz transforms this process. It acts as a data hub, ingesting disparate bordereaux files and standardizing them into a single format.
1. Automated Ingestion & Standardization
The system maps columns from different TPA reports (e.g., "Loss Date" vs. "Date of Loss") to a unified data model automatically. No more copy-pasting columns.
2. Policy-Level Matching
Reconwizz matches individual claims to specific policies, ensuring that payments are valid and within limits. It flags duplicates instantly.
3. Cash Allocation
The system reconciles the net settlement wire from the broker against the thousands of individual premiums and claims in the bordereau, ensuring the cash actually hit the bank.
Take Control of Your Data
Don't let your growth be limited by how fast your team can process spreadsheets.
Reconwizz is trusted by insurers to handle complex, high-volume reconciliation. Whether you are reconciling premiums, claims, or bank accounts, our platform ensures accuracy and compliance.