In AL3 downloads, if a policy matches more than one policy record in AMS/CRM, that means we need to take a look at the downloaded transaction record and manually merge it to the correct original policy. This is where the Policy Reconcile process comes into the picture. All such policy transactions are put into manual reconciliation mode and the user gets a screen to take a look at each such policy. Users can search in the original policy list at this point and match the duplicate with the correct policy. This process is called Policy Reconcile Process or Policy Reconciliation. Users can choose to ignore a transaction, add a new transaction record or update an existing policy record here. Along with the insertion or updating of policies, related transactions like insured, insurable items, and coverage are also created and updated.

Al3 Downloads Policy Reconciliation Purpose

The purpose of a policy reconciliation is to confirm that the policy transaction and related relation data are accurate, valid, and complete. By completing reconciliations for all transactions and related objects on a regular basis assurance is obtained that insurance information is reliable and informative. Reconciliations are a critical part of policy insurance.

Reconciliation Process

Each policy is assigned a to-be-reviewed field that holds true or false status. The original policy is called a master record and another policy that has to be reviewed has a true status and is called a duplicate record. In policy reconciliation, we try to merge the duplicate policy record in the master record. Segregation of duties requires that an individual policy cannot be both the duplicate records and the master records of a reconciliation.

In policy reconciliation, we follow the following steps.

  1. Listing of duplicate records.
  2. Listing of master records.
  3. Select a duplicate policy and choose the master policy with which we are trying to merge.

The reconciliations must ensure that the policy number, policy line of business, policy effective and expiration date, and other related objects lookup data like insured, insurable items, and coverages of duplicate policies merge with the master policy record.