Client stories
What changed after sample testing, reserve file reads, and application extract reviews for finance teams we have worked with.
“The sample flagged recoveries that sat in suspense for nine months. We cleared most of them before year-end, though we still argue about two salvage cases they marked as unclear.”
“Their reserve examination gave our committee a file-by-file schedule instead of another high-level chart. That helped us challenge stale case estimates without waiting for the next actuarial cycle.”
“The application analytics review was narrower than I expected, in a good way. They ignored vanity dashboards and focused on whether payment batch rejects ever reached finance.”
Extended story: year-end roll-forward for a Johor motor book
A regional motor insurer approached us six weeks before year-end. Their claims financial audit sample traced settlement batches from the claims application into three ledger accounts that had been merged during a chart redesign. Two of the merge rules still posted recovery credits to an old suspense code.
Fieldwork took five weeks with two on-site weeks in Johor Bahru. The final pack listed fourteen exceptions above the materiality threshold we agreed at scoping, eight of which were posting-map issues rather than claim-handling errors. Finance restated the affected management accounts for the last two quarters and updated the extract mapping before the statutory audit team arrived.
The mild friction: extract delivery slipped by ten days, which compressed the reporting window. We documented the delay in the timeline so the board understood why the closing briefing moved.
Extended story: reserve lag after a claims application upgrade
A TPA upgraded its claims application mid-year. Case reserve changes appeared in the handler screen the same day, but the finance extract only refreshed overnight for certain product codes. Our outstanding claims reserve examination compared on-screen estimates to ledger balances for a stratified sample and showed a consistent one-day lag on those codes — enough to distort daily management packs, though not the month-end after the refresh completed.
The practical fix was an interim extract for the affected codes, owned by claims finance, until the vendor corrected the refresh. We did not rewrite the application; we made the accounting delay visible and assignable.