Insurance isn’t exactly synonymous with innovation. But the industry is fiercely competitive, particularly in recent years. Insurance companies face expensive challenges in an evolving market: rate increases, high operating costs, more window-shoppers than buyers, and perhaps the biggest cost — advertising. Think of all the money spent to boost consumer awareness surrounding Progressive’s Flo, State Farm’s Jake, Geico’s cast of characters, and Esurance’s John Krasinski.
While advertising is a great way to get attention, the insurance companies with the best financial systems will be able to react faster to consumer- and business-based needs, which drives growth and leads to a competitive advantage. By making the move from legacy technology to the cloud, particularly with Workday Financial Management, you can equip your organization with greater flexibility and insight in order to gain a competitive edge.
Technology that grows with your business
Aside from providing more transparency across your company, Workday Financial Management could also save time and money that traditional tech solutions simply can’t. With Workday, you can store all of your financial data in one place and access ledger accounts, spend categories, cost centers, and other types of information all from a single dashboard. Because Workday uses an innovative in-memory computing model, transactional data is aggregated and rolled-up in real-time and then made available through data visualizations and dashboards without the need for a separate business intelligence tool.
Whether your insurance company focuses on a single product like auto insurance or operates a multiline business (say you bundle policies like home/renters and auto), you should have a system that brings together your people and your financial information, including your workforce, claims, and revenue. And as Workday Financial Management is available from mobile devices, you can securely access the right information in real time.
Real-time financials and more accurate reports
In addition to being able to find the type of data you’re looking for more easily, Workday makes it easy for senior executives to identify trends with fewer resources. As Mark Stinson, the Director of Corporate Accounting at Shelter Insurance Companies, explains in his Diary of a Deployment on the Workday blog, “We want to be able to look at losses by state and even lines of businesses within each state, so we can understand what is happening related to an uptick in losses in a region, for example. Right now that would be at least an all-day project and include discussions with our claims team, which may or may not be able to quickly identify the root cause.” Workday’s real-time data enables you to identify, analyze, and take action as current trends occur, not days after a manual report has been produced.
Because Workday Financial Management unifies transactions and analytics, if you encounter an issue based on a report in Workday, you can take action directly from the report to the underlying transaction. Not only does it allow senior executives more control over the company’s financials on an everyday basis, but it also enables employees formerly tasked with creating and editing reports to add more strategic value to the organization.
More efficient data management with Worktags
Sometimes you need to generate reporting and gain insight based on many different aspects of your business such as department, region, line-of-business, agent, campaign, or anything else that’s relevant. With Worktags, a feature unique to Workday, it’s simple to do just that. Worktags are keywords assigned to business events so financial information can be reported on, categorized, and analyzed easily within Workday. It’s easy to slice and dice the data generated from your transactions with a wide variety of detail and dimensionality while still enabling all the required control and auditability that users expect.
Shelter Insurance Companies was even able to reduce their Chart of Accounts from roughly 1,400 general ledger accounts in their former system to 400 in Workday, thanks in part to the efficiency afforded by Worktags. When you have the ability to describe transactions, you can simplify and streamline your account numbering scheme. Workday’s financial data model (FDM) for Shelter Insurance Companies was also responsible for the reduction in accounts. As a roadmap which pinpoints the current and future needs of an organization — everything from company hierarchy to cost centers — an FDM is designed to help transition a business (and their data) to the new technology smoothly.
Your financial management system should be able to provide valuable insights into your business so that you can you make more informed decisions and drive growth. Learn how your company could benefit from a cloud-based financial solution with our eBook, Taking Finance to the Cloud.