Statutory Reporting: Insurance’s Financial Reporting Requirements

These statements assess an insurance company’s ability to pay customer claims and focus on the company’s balance sheet. The process can be challenging due to redundant information, disconnected documents, and varying state regulations. However, technology plays a crucial role in streamlining statutory reporting, and companies statutory reporting like Workiva have helped insurance companies save significant time in report preparation.

Search NAIC

For example, if your reports are late or irregular, your financial planning cycle is handicapped. Forecasts are based on uncertain actuals, and executive decision-making is reactive rather than proactive. It is particularly useful in group structures where differences in timing between local statutory closings and group consolidation cause version chaos.

Statutory Reporting for Publicly Traded Companies: Key Considerations and Best Practices

Noncompliance may also result in the suspension or revocation of licenses, directly impacting business operations. Financial reporting requirements in the insurance sector encompass a set of obligations designed to ensure transparency, accuracy, and compliance with statutory standards. Thomson Reuters ONESOURCE Statutory Reporting is leading cloud-based disclosure management software, helping you remain compliant in over 45 jurisdictions.

• ONESOURCE Statutory Reporting gives you flexibility with your operational delivery model whilst driving standardization, efficiency and control.
• Looking ahead, evolving technologies and regulatory frameworks will shape the landscape of statutory reporting obligations.
• As many companies strive to get leaner, reporting transformation and optimisation can play a crucial role in meeting strategic objectives.
• Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
• Companies facing difficulty meeting a deadline may request an extension by filing a specific form with the SEC.
• In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

Mitigate Risks in an Environment of Increased Public Scrutiny

• These disclosures enhance transparency, enabling stakeholders to evaluate an organisation’s risk management capabilities and adherence to regulatory frameworks.
• Misreporting or fraudulent activities can lead to legal action and possible imprisonment for companies and individuals involved.
• Every transaction must be traceable from the source document through to its aggregation in the general ledger.
• By following these key steps, companies can effectively navigate the process of statutory reporting, ensuring accuracy, compliance, and transparency.
• Clarity should be the priority when producing reports for submission so that regulators and other stakeholders can quickly comprehend the information provided.

Investors must have access to accurate, timely, and comprehensive financial information in order to assess a publicly traded company’s performance. Ignoring statutory reporting obligations can lead to severe legal penalties for insurance companies. Regulatory bodies, such as state insurance departments, impose fines and sanctions on organizations that fail to comply with required reporting standards.

• SAP applies to all insurers authorized to do business in the United States and its territories, and these companies must prepare statutory quarterly and annual financial statements in accordance with SAP.
• A proactive approach to compliance can safeguard both financial health and corporate reputation in a highly regulated environment.
• By leveraging external expertise and investing in robust accounting software, the company was able to streamline its reporting processes and ensure compliance with regulatory requirements.
• Noncompliance can result in heavy fines, penalties, and actions from government agencies, including restrictions on business activities or loss of licenses, which can disrupt operations.

Automatic solutions enable businesses to generate reports fast and with little manual work, which lowers errors and saves critical time. At the same time, multinational companies must unify their data across multiple subsidiaries under various local rules. ledger account This can become very complex when dealing with multiple platforms, due to the difficulties involved in gathering data from so many different sources. The use of automated reporting software solutions is critical in this regard, given how it can reduce the risk of manual errors and ensure uniform standards despite a wide range of sources. Automation can streamline operations and ensure data hygiene is protected even when dealing with large amounts of it.

A key pain is the constant ping-pong between data owners and data controllers that derives tight cycles and drains the energy of team morale. These pains come out most obviously at entity consolidation, when financial statement consolidation turns into an agonizing process of copy-pastes, reconciliations, and nervousness. But the integration of management reports and statutory reports risks non-conformity and version control problems. It is why reporting automation tools are becoming widely adopted by many teams to make a clean distinction between these deliverables. The internal documentation process culminates in the creation of a comprehensive audit trail that links every figure in the final report back to its originating evidence. For tax reporting, this includes detailed schedules calculating depreciation and substantiating all claimed deductions.

Submit the statutory report on time

Publicly held companies are required to file additional reports with the Securities and Exchange Commission. Another example of statutory reporting is a state law that requires all municipalities to undergo an audit of account money that is spent and to make that information available to the public. Corporations that operate in multiple countries must walk a challenging tightrope, meeting various statutory requirements across various jurisdictions. These may include ESMA guidelines followed in many European nations, APAC requirements or those in emerging markets.

Essential Singapore Payroll: Understanding Statutory Reporting

• As per the laws and legal practices in Australia, the following contract outlines the statutory reporting requirements that must be adhered to by all parties involved.
• Technology may be widespread in the financial industry, but teams still rely on manual processes that can insert errors into financial documents.
• These reports reinforce the credibility of statutory reports by assuring stakeholders that the presented information has undergone rigorous scrutiny and verification by qualified professionals.
• In addition to financial reporting, insurers must comply with various regulations set forth by bodies such as the National Association of Insurance Commissioners (NAIC) in the U.S.
• Statutory reporting is the mandatory disclosure of financial and non-financial information by companies and organizations to designated government agencies and regulatory bodies.
• The ever-evolving regulatory landscape presents a compelling arena for legal professionals, businesses, and policymakers to engage with.

For instance, JGL Pharma, a global pharma firm, saved 50% of its market consolidation Liability Accounts preparation time and put an end to version mismatches by transitioning from Excel to an automated planning solution. By using Farseer, their entire statutory process was accelerated, simplified, and audit-ready. Statutory reporting aims to centralize data reporting and ensure companies operate responsibly and transparently. The first preparatory step involves defining the precise reporting period and identifying all necessary source documents that support the financial data.