Development of an automation system for calculating insurance reserves

INTEC-CONSULTING approached ItFox to develop the automation system "Intec. Reserves - 781-p" due to the entry into force of the Bank of Russia Regulation No. 781-p from 01.01.2023. The regulation made changes to the methodology for calculating the obligations of insurance organizations and increased the volume of reporting. Previously, all calculations and data management were done manually in Excel spreadsheets, which created the risk of data loss and errors in formulas. Due to the increased complexity of reporting, it was decided to automate the processes to minimize errors and increase work efficiency.

Implementation
ItFox immediately started working, given the urgency of the task. The system included functionality for automatic calculations, error highlighting, and actuarial calculations. The project began with the development of the database architecture, where the specialists, together with the client, defined the necessary entities and data storage structure. Then the first version of the calculation was developed, tested and agreed with the client, which minimized the risk of errors. The team gradually implemented subsequent calculations, conducting multiple tests with the participation of insurance company employees. One of the challenges was to eliminate the confusion in the names of documents, for which the ability to match the uploaded fields and an error file to notify users of shortcomings were developed.

Result
It provides automatic calculation of reserves, which significantly accelerates the reconciliation process. The interaction between insurers, actuaries and regulatory authorities has become more transparent, improving communication and reducing the time spent on reporting. The system allows importing data from external sources, verifying and analyzing it, as well as generating actuarial calculations, which are then exported to the users' accounting systems.