Delivering turnkey and tailor-made insurance services through a network of reseller partners is a complex business. New government reporting regulations like the European Union’s Solvency II make it even more delicate. It’s eye opening to see how French insurance leader AUXIA has stayed out in front of compliance and reporting issues with Axway Financial Accounting Hub, while at the same time accelerating the digital transformation of its business.
Facing up to growing complexity
AUXIA’s white-label business model involves many different types of reseller contracts for life and accident insurance policies. Partners rebrand AUXIA’s products and integrate them into their marketing and websites. This requires AUXIA to deliver timely financial data in the specific formats their clients require, while also closing their own books at the end of each month, quarter, and year, and sharing the data with regulators.
Evolving EU Solvency regulations added complexity to these already challenging tasks.
“In the past, our financial consolidation process aggregated all the accounting data sent by our business partners,” explains. Nathalie Meyer, Chief Financial Officer at AUXIA. “After this process, we were unable to drill back down to the underlying transactions, and we knew this way of working would make it very challenging to meet the reporting requirements of Solvency II.”
See AUXIA CFO Nathalie Meyer discuss the transformation of the firm’s financial and accounting systems with Axway in the video below:
A platform for transformation
AUXIA chose Axway Financial Accounting Hub as the best solution to improve its compliance posture, future-proof its financial and accounting platforms, and help establish a foundation for a larger business transformation.
Axway Financial Accounting Hub is a comprehensive, secure, and proven platform for accelerating digital finance transformation. It manages, automates, and optimizes data transformation and integration processes that enforce accounting rules. It provides data quality and information alignment via a single source of truth to ensure compliance and support operational, financial, and business requirements.
Strengthening financial compliance
By building a future-ready accounting function powered by the automation capabilities provided by Financial Accounting Hub, AUXIA ensures that its core financial processes are fast, efficient, and transparent.
“We are now using Financial Accounting Hub to set up and apply updates to policy records automatically,” explains Meyer. “If the Axway solution detects an exception, it automatically routes the policy to another system for manual processing by one of our employees. Crucially, every activity in Financial Accounting Hub creates a full audit trail, which helps us to demonstrate our compliance to our regulators.”
Serving partners faster and better
Improved compliance is only one of several ways that Financial Accounting Hub has helped transform AUXIA’s business. The previous accounting platform and data integration strategy made it complex, costly, and time-consuming to onboard new partners. Financial Accounting Hub enables AUXIA to onboard new partners with speed and ease.
“Our data is now complete, accurate, up to date, and easy to work with,” says Meyer. “We have accelerated the onboarding process for new business partners substantially, removing the barriers to business growth.”
In the past, AUXIA often had to purchase expensive consulting resources to maintain accounting data interfaces with partner firms. Financial Accounting Hub makes it far faster for AUXIA to connect partner companies to its accounting platform, securely and transparently. This makes it easier for partners to do business with AUXIA, while reducing the opportunity costs of forging new business relationships.
The Financial Accounting Hub also enables AUXIA to deliver customized analytics dashboards to its business partners, showing metrics tailored to their unique business models. This helps partners manage, monitor, and expand their sales of AUXIA products.
Because the Axway solution eliminates the need for technical expertise when designing new business rules, it helps AUXIA reduce costs for outside IT consulting and focus the IT team on strategically important tasks.
“Before, our agility as an organization was constrained by the need to involve IT when we needed to make changes to our processes,” Meyer concludes. “With Financial Accounting Hub, we’ve liberated our people to build and maintain business rules themselves — helping us to maintain a strong compliance posture, move faster on new opportunities, and grow the business.”
AUXIA, a company with a 40-year track record of success, is now moving ahead confidently, starting with the accounting platform and tools it needs to meet new compliance regulations.
By delivering these capabilities, Financial Accounting Hub also stands ready to help U.S. customers preparing for compliance with IFRS 17 Insurance Contracts regulations that will become effective for annual reporting periods beginning on or after 1 January 2023.
These new requirements aim to introduce a consistent approach to the measurement of liabilities under insurance contracts and to guarantee more transparent methods for insurance companies to recognize their profits.
IFRS is coming in 2023. Here are 4 things you should know to be ready.