The Benefits of Insurtech to Captive Insurers

Sovos
September 22, 2020

This blog was last updated on September 22, 2020

Tax filing, wherever you are in the world, is becoming increasingly complex, with regular rate updates and governments eager to close tax gaps via new mandates that demand real-time reporting.

Despite this, many captive insurers still rely on resource-heavy, manual procedures to capture, validate and process large volumes of data. As well as taking significant time, this approach also carries a greater risk of errors.

As Daniela Dinkova, compliance services supervisor of our captives practice, recently shared with Captive International, insurtech solutions are helping ease this burden by delivering automation to accelerate workflows and improve accuracy. A technology-enabled approach helps to simplify complex tax calculations based on the captive insurer’s specific products and the type of risk covered. They can also streamline the process of building insurance premium tax and parafiscal charges into premium allocations to protect profit margins.

Operating internationally

If a captive operates across multiple jurisdictions, all requiring different filing and reporting processes, the need for technology is even greater. To meet the complex and fragmented demands of each tax authority, in particular the need for ever-greater granular reporting, insurtech helps to provide and store the necessary data, not just for compliance but also to proactively improve efficiency.

Use cases include making insurance premium tax data easily accessible for auditing purposes and smooth reporting and filing.

Speed, accuracy and compliance

Understandably, some captives are reluctant to invest in technology that they may only use once a year when annual filing takes place. Others are concerned about whether digital solutions will be disruptive. The fact is, however, that spreadsheets don’t allow captives to move quickly in the face of complex, rapidly-changing government regulations and they also can’t deliver the level of data security required in today’s digital era.

If a full-scale implementation seems too daunting, captive insurers can work with consultants and benefit from their technology without having to invest the time and resource themselves. If organisations do want to improve data security, compliance, efficiency and filing accuracy, now could be the time to explore the wealth of technologies available.

Full article originally published here by Captive International. 

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Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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