Welcome to the jungle – the complexity of end-user computing

… an insurance policy through to the presentation of the financial impact in the external reporting. For this, we start by understanding the process steps and how the insurer safeguards the reliability of data. We observe that, from the smallest pension fund to the largest insurance company (collectively hereafter: the insurers), all apply some kind of EUC in their processes. 

With EUC, we mean that the user is in a position to manipulate data in some form outside the initially designated systems and processes. Excel is the popular EUC choice as it is a tool that offers agility and is something everyone is familiar and comfortable with and has access to.

Why is EUC applied so frequently?

We understand there are several reasons, including:

• Previously validated calculation models are not always able to process all policy conditions adequately, especially when product features are changed or when an insurer acquires a new portfolio.
• Insurers often use multiple systems for administrating their different products. These core systems often do not generate identical outputs that, subsequently, need to be harmonized.
• Calculating sensitivities and ‘what-if’ scenarios can be done quickly in Excel.
• If an issue is identified, users want to solve it as soon as possible. EUC (Excel) creates the flexibility and opportunity to do so.
• Users apply their own EUC model to perform a check on automated calculations.
• Excel is an output format that can easily be shared with other parties.

Read the entire article by Mark Kasander and Joost Vos under Download.