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Cost Allocation and Calculation

Efficient, transparent and risk aware

Clear, auditable, fair

An objective and transparent cost allocation model based on sound distribution means you’ll get fewer queries about your invoices or chargebacks.

Accurate, compliant, efficient

Eliminate errors in your allocations. Ensure compliance with statutory and audit regulations. Save time and effort while making continuous improvements.

Drive Behavior

With rewards for good performance and penalties for poor performance, business units are incentivized to be more proactive in risk management.

Ventiv automates the management of premium and cost allocation/calculation, eliminating the manual consolidation of data from internal and external sources. Ventiv links to the underlying data to ensure accurate amounts are used in your calculation/allocation, for example premiums and taxes from policies or self-retentions from claim deductibles.

Ventiv applies any number of factors and weightings to establish the costs that should be allocated to each business unit. Generated costs, including items like taxes, can then be verified and adjusted before the process is locked down. Invoices can be generated and distributed from the Ventiv system.

Premium Allocation Record

Justify your allocations to business units

With Ventiv you’ll always be able to justify why invoice amounts allocated to each business unit. For example, for property lines you’ll be able to show the sums insured, audit scores and the rates. For liability and casualty lines, you’ll be able to show the business unit’s claims history, loss prevention measures, turnover, number of employees and other factors and data that has been used.

Streamline and formalize the allocations/calculations process

When you’ve created your allocation process with Ventiv, it can be easily run each year at the click of a button, whilst maintaining the previous year’s settings and results.

No lengthy consolidation of data from spreadsheets and other sources. Any changes, for example to rates and other variables, can be done in one go using a simple data import and update. Clear audits of the basis for the allocation and allocated amounts, including from prior years, provides the ideal basis for audits and compliance.

  • Setup once, reuse next year
  • Audit Proof
  • Fully Documented
  • Implement new schemes without loosing previous versions
  • Transparent and reproducible
  • Manage flexible weightings
  • Try out new approaches in "test mode"
  • Integrated rules prevent errors
  • Easy to use company tree
  • All important data in one place
  • RiskConsole knows which fields and locations need to be used with which policies
  • Easy to manage tax rates
  • Supports complex fee & tax schemes
  • Grant insurers access
  • One tax table agreed by all
  • Each location listed with distributed premium, taxes and fees
  • Calculation path documented & transparent
  • Generate invoices & track payments automatically
Best_Practices.jpg

Incentivize proactive loss mitigation

With the possibility of a bonus/malus regime via your cost allocation/calculation process, you will encourage good risk management practice and penalize poor management of risk. With the costs calculated and allocated, you can report the year-on-year variances by region, by business unit and by line of coverage.

Helping promote best practices in risk improvement, loss control and safety incentives to drive the embedding and improvement of risk management across your business.

Ensure accurate and repeatable calculations

With your cost allocation and calculation process translated into a validated and formalized system, the likelihood of errors or omissions is much reduced or even eliminated.

Also the move to a supported system, improves resilience of the operations and institutionalizes the process.

APPLY YOUR METHODOLOGY

Allocate costs based on your preferred allocation methodology, based on any combination of claims experience, exposures, survey results and other risk factors. Once the allocation methodology is established, reports can be set up and burst out to business units, cost centers, and/or locations for the allocation.

FULL PROCESS AUTOMATION

Configuring Ventiv according to your allocation methodology enables full automation. Ventiv factors in various measures (i.e., exposure, rates, premiums and fees, claim retentions, claim frequency). Those measures are split by coverage, location, rating types or business units. The result: sophisticated, tailored allocation of costs, fees and taxes.


ADDITIONAL FACTORS ALLOCATED

Ventiv defines minimum cost spend per location, inclusion of claims details (both frequency and severity), and proportional allocation of tax using coverage and country information. Other measures, such as exposure, rates, loading and discounts, can be allocated according to defined variables.

CLOSE THE ALLOCATION CIRCLE

Once the allocation process is completed, Ventiv automatically:

  • Creates the premium invoices for each business unit;
  • Emails the invoices to each business unit;
  • Informs finance department of premiums that have been invoiced; and
  • Loads the information directly into your company’s bookkeeping system.

AkzoNobel

AkzoNoble consolidates and automates many of its insurance management processes with Ventiv to produce time and money savings.

United Technology
United Technology

United Technologies Corp.

"(Ventiv) has helped us refine the information we need to accurately reflect where all our premium charges should be paid." READ MORE >

CONNIE BARTELS

Senior Risk Finance Manager

United Technology



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