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Month End Close Package

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Month-End Close Package (MECP)

Motivation

At BriteCore, we empower our clients to tailor their experience for each line of business, perfectly aligning with their specific operational needs. While this customization offers powerful benefits, it naturally leads to the need for numerous bespoke reports per client. Creating additional reports is a seamless part of the BriteCore service, although the scheduling required for such tasks can sometimes impact our clients' operational agility. Moreover, managing a large volume of custom reports places a significant maintenance burden on both BriteCore and our clients.

 

In response, we have collaborated with our clients to develop a solution that leverages standardized reports built on widely recognized insurance terminologies. These reports have been meticulously optimized for performance, accuracy, and scalability to accommodate the fast-paced growth of our client base.

 

Our innovative guided custom field navigation system allows for the seamless integration of custom data from client-specific lines of business into these standardized frameworks. We call these Dynamic reports.  Dynamic reports deliver  the best of both worlds: robust, heavily engineered standard reports combined with the flexibility of client-level customization. 

Overview

The BriteCore Month-end Close Package (MECP) is the first example of a Dynamic report designed to assist insurance carriers with their month-end closing procedures. This article provides detailed instructions on how to use the MECP, customize its features, and understand the data it incorporates.

Introduction to MECP

The MECP is generated on the first day of each month and contains critical metrics required for financial accounting, applicable for both Month-to-Date (MTD) and Year-to-Date (YTD) bookings. The report is delivered as a Microsoft Excel (XLSX) Workbook comprising five distinct worksheets, each representing a primary dataset. The MECP's comprehensive scope aims to replace a broad range of standard monthly reports, thereby streamlining the reporting process.

Key Features

  • Comprehensive Data: The package includes all essential data for closing month-end financials at a granular level with consistent dimensions.
  • Customization Capability: Utilizing the Custom Fields feature, carriers can tailor the report to include specific data points relevant to their operations.
  • Flexible Usage: Although intended for month-end use, the MECP can be generated for any completed day to provide up-to-date MTD or YTD information.

Customizing the MECP

Adding Custom Fields

To enhance the MECP with carrier-specific data:

  • Navigate to the Custom Fields setup in the Reporting module.  Today this only customizes MECP but moving forward will work for all Dynamic reports.

 



  • Push Add Field to create a mapping.  Click on the Chevron to open it up.  Provide a name for each field you wish to add.
  • Use the 'Add Mapping' option to link each custom field with data from your existing line setup.
  • Populate the required fields using the dropdown menus to specify the data source.
  • Once set up, these custom fields will be included each time the MECP is generated.

 

Accessing and Running the Report

  • Locate the Report: Go to the Report List and select the Month End Close Package..

 

 

  • Set the Report Date: Choose the desired date for the report; this does not need to be at month-end.

 



  • Monitor Report Generation: Navigate to the Report Status to view the progress. To view the result, either navigate to Attachments, or Click the 'Completed' link once the report is ready.

 

 

  • Download the Report: Access the Month End Close Package folder to download the finished report.

 

Contents of the MECP 

Each worksheet in the MECP includes a variety of dimensions and measures relevant to insurance operations:

  • Premium: Tracks various premium metrics including MTD and YTD values.
  • Transaction: Details transactions by dates and types.
  • Billing: Covers billing information across different terms and aging categories.
  • Commission: Provides details on commissions paid and rates applied.
  • Loss: Includes detailed metrics on losses and related financial movements.

All worksheets share common stock dimensional attributes like State, Line of Business, and Policy Number, ensuring a uniform approach to data handling across the report.



 

Detailed Contents 

All sheets share 13 common Stock Dimensional attributes: State, Line of Business, Policy Type, Policy Number, Effective Date, Expiration Date, Insured Name, Agency Group, Agency, Agent, Policy Status, Cancellation Reason, and Cancel Date.

As always, the Report date is included on the cover tab. 

Contents of the 5 Worksheets:

  1. Premium
    1. Dimensions - N/A
    2. Measures - MTD and YTD values for Written Premium, Written Custom Fee, Earned Premium; Ending Unearned Premium
  2. Transaction
    1. Dimensions - Timeframe, Transaction Date, Revision Date, Commit Date Time, Transaction Type, Declaration Description
    2. Measures - Transaction Written Premium
  3. Billing
    1. Dimensions - N/A
    2. Measures
      1. Term / Balances: Current Due, Term Balance, Term Custom Fee Collected, Term System Fee Collected, Term Premium Collected, Term Net Paid, Term Return Premium, Term Premium, Revision Written, Advance Premium, Term Premium WriteOff, Term Custom Fee WriteOff, Term System Fee Waive
      2. Aging: Current Due, 0-29, 30-59, 60-89, 90+, PICC, Deferred Premium
      3. MTD and YTD: Custom Fee Collected, System Fee Collected, Premium Collected, Net Paid, Return Premium, Written Premium, Change Advance Premium, Premium WriteOff, Custom Fee WriteOff, System Fee Waive
  4. Commission
    1. Dimensions - Current Revision Commission Rate
    2. Measures - Term Commissioned Premium, Term Commission Paid, Term Commission Rate, MTD Commissioned Premium, MTD Commission Paid, MTD Commission Rate, YTD Commissioned Premium, YTD Commission Paid, YTD Commission Rate
  5. Loss
    1. Dimensions - Loss Cause, Cat Event, Loss Date, Date Added, First Closed Date, Last Closed Date, Reported Date, Last Changed
    2. Measures - Ending Reserves and then MTD, YTD, and ITD (inception to date) for Loss Reserved, Loss Paid, Adjusting Reserved, Adjusting Paid, Legal Reserved, Legal Paid, Subrogation Reserved, Subrogation Received, Salvage Reserved, Salvage Received, Reinsurance Reserved, Reinsurance Received, Beginning Reserves, Gross Loss Paid, Expense Paid, Gross Loss Incurred, Expense Incurred

 

Replacing Existing Reports

The MECP replaces several existing reports, thereby reducing redundancy and enhancing report accuracy. Notable replacements include:

  • Agent Commission becomes MECP Commission Details
  • Aged Accounts Receivable is replaced by MECP Billing
  • Premiums Receivable Trial Balance is consolidated into MECP Billing
  • Additional reports related to premiums, fees, and claims are also integrated into the MECP.

 

Conclusion

The MECP is designed to provide a unified, customizable, and efficient reporting solution for insurance carriers. By following this guide, BriteCore carriers can maximize the utility of the MECP, ensuring a smooth and accurate end-of-month financial reporting process.

 

Since this feature is in early access only, reach out to richard.faris@britecore.com to sign up for EA.

 

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