Data Analytics
Consultants: Pallari Mujumdar
A multi-billion-dollar insurance company faced challenges in reconciling financial data received from multiple internal and external sources in both standardized and non-standardized formats. To address these challenges, the company sought to enhance its financial reporting methodologies and demonstrate accurate, SOX-compliant financial reconciliation.
As the insurance company grew through expansion and acquisitions, reconciling financial data across disparate systems became increasingly complex, manual, and difficult to audit.
The insurance company implemented an automated data quality and validation framework to standardize controls, improve reconciliation, and support SOX-compliant financial reporting at scale.
As the client’s business expanded, so did their data ecosystem, including legacy/modern OLTP systems, Excel-based reporting systems. Having multiple data sources meant an inconsistent format, including a lot of missing data.
The lack of standardized control checks made financial reporting difficult to scale. Data validation and reconciliation were largely manual, creating delays in meeting financial SLAs and increasing the risk of reporting errors. These challenges also made it difficult to demonstrate consistent, auditable internal controls required for SOX compliance, especially as data volume and complexity continued to grow.
We implemented an automated data quality and validation framework to apply standardized quality checks across all financial data sources including Policy Premiums, Third Party Administrators- Claims and Earnings.
The validation framework was designed to validate financial data points in every step of the way. Therefore, every time the data was moved through the layers of the Data Lake, validation checkpoints were put in place.
The framework validated:
The testing results persisted and surfaced through Power BI reports. These reports are the foundation of a SOX reporting solution that provides clear, auditable evidence of data controls and validation of outcomes. This allowed finance and audit teams to trace financial figures back to source systems and demonstrate compliance during audits.
Technologies Used:
The automated validation framework reduced manual reconciliation while improving accuracy, timeliness, and reliability of financial reporting. Standardized, auditable controls strengthened SOX compliance and enabled finance and audit teams to confidently trace results back to source systems. The scalable approach also ensured consistent reporting and governance as the organization continued to grow through acquisitions.
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