The global market has grown to over 4.1 trillion dollars with domestic insurers facing market share competition from foreigner insurers along with increased regulatory scrutiny
In 2020 the US insurers alone generated $1.2 trillion in taxable policy premium revenue (Equaling 3% of the US National Gross Product (NGP)
Property and Casualty Insurers wrote policies , generating approx. $600 billion* of which Workers Compensation policies accounting for $55 billion
Large P & C Insurers offer coverage in all 50 states, 5 US territories and Canada. Subjecting themselves to taxation at the state, county and city level
For one insurer with 20 P&C lines of business in order to generate accurate tax liability recognition for payment and reporting required the establishment and maintenance of 106,000 tax rate related codes
There are over 2,600 insurers, and 400,000 Insurance Brokers who need to file and likely have no in house tax preparers
Governance, Controls and Compliance
No internal controls, or monitoring capabilities, breeds poor oversight
Allocations (Chargebacks)
Issues to accurately charge back business units for payments on the “behalf of” accurately or provide audit trail
Profitability
In an industry which is extremely positive, overpayment of taxes deprives revenue “dollars” from hitting the bottom line or impacting performance expectations.
Dated tax rates and inaccurate formulas
Reliance on manual rate updates and lack of granularly leads to inaccurate payments resulting in recurring penalties
Erroneous formulas arise from lack of data granularity and inability to combine data sources to account for all potential credits
Manual Processes
Multiple steps exacerbates the likelihood of potential errors occurring.
Necessary tax policy level details , or “end to end” auditable trails of transaction processes are rarely achievable
Standards and Completeness
Lack of standards and controls to enable tax accounting as a reliable “litmus” test of financial reporting
Predictive Analytics limited
Ability to aggregate data across periods cannot be done
Front & Back Office Metrics
Inability to leverage a 3rd reliable source of data to reconcile key metrics
Inability to present business segment forecasts that align to ASL reporting.
About
Providing insurers and brokers with unique tax calculating, reporting and analysis capabilities within a secure cloud environment.
Partners
Copyright @2025 PTAAS