A new survey, based on interviews with 39 finance directors in the London insurance market, reveals none of the participants use a finance system architecture that fully meets their requirements.
The KPMG study says in almost every case underwriting systems have developed on a standalone basis and are not fully integrated into a general ledger or financial data warehouse.
The report adds spreadsheets are used very extensively leading to a dependence which raises control requirements and reporting risk.
It highlights how in the Lloyds market there is acknowledgement of insufficient investment in systems that automatically report and calculate on both a year by account and an annual accounting basis.
It says this becomes a further issue in tracking segmental analysis by line of business reported on a written basis, by underwriters in their own reporting and statistics.