KPI MONITOR Analyzer for IC Ingosstrakh
In November 2017, ProfItProject completed a project to automate the expense allocation process for IC Ingosstrakh (Joint-Stock Insurance Company Ingosstrakh) using the KPI MONITOR Analyzer software platform.
The company ProfItProject has successfully completed the implementation of KPI MONITOR Analyzer at IC Ingosstrakh (Joint-Stock Insurance Company Ingosstrakh).
The primary objective of the implementation was to automate the expense allocation process for IC Ingosстрах (Joint-Stock Insurance Company Ingosstrakh).
- Expense allocation is the process of redistributing indirect costs, initially attributed to cost centers, to consuming departments, and further to profit centers/business lines, with the goal of determining the financial result for each type of insurance, department, branch, and employee.
During the implementation, specialists from ProfItProject conducted an audit of the allocation system used by IC Ingosstrakh, prepared a Technical Specification, and configured the KPI MONITOR Analyzer system in accordance with the client’s functional requirements.
Expense allocation, in one form or another, is present in every insurance company. However, the level of detail in the distribution process is of critical importance.
As a large, regionally distributed company with a wide range of insurance products, IC Ingosstrakh places high demands on the accuracy and speed of indirect cost allocation.
The company uses a cascade allocation model, where the total indirect costs are distributed across Financial Responsibility Centers (FRCs) in multiple steps according to a defined sequence. This process utilizes allocation drivers—rules that enable the distribution of higher-level accounting costs to lower-level objects.
The complexity of this approach and the volume of processed data (billions of records) impose high requirements on the implemented software solution.
Using KPI MONITOR Analyzer as the platform provided the flexibility to configure rules (drivers) and rapidly allocate expenses across a large number of objects. As a result, IC Ingosstrakh specialists gained a user-friendly mechanism that not only assigns costs to territorial divisions but also traces them back to their actual sources and further allocates them to business lines.
The business intelligence (BI) capabilities of KPI MONITOR Analyzer enabled the configuration of dashboards for top management and heads of structural divisions. The system’s functionality allows users to fully track the allocation history, with detailed step-by-step breakdowns across required dimensions.
A qualitative outcome of the project was the creation of a transparent environment for calculating and analyzing indirect costs for all business users of the system.
The implementation allowed the Finance Department of IC Ingosstrakh to achieve its goals - implementing a sophisticated allocation model, significantly expanding financial analysis capabilities, improving the quality and speed of financial reporting.
- IC Ingosstrakh is one of the largest Russian insurance companies, ranking among the top 10 insurers in Russia. It is classified as a systemically important insurance company in the Russian Federation.