The wave of tariff changes is sweeping across the insurance industry. For insurers, the change isn’t just about absorbing costs—it’s about adapting their financial systems to weather a volatile economic landscape.
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The insurance industry’s profitability has been turbulent in the last few years due to inflation and extreme weather-related losses. And with tariff changes, costs are expected to rise even more.
Private insurers are under increasing pressure to streamline operations and reduce costs to adapt to the rapid pace of change and prevent further impacting customers through premium pricing hikes and pulling back high-risk coverage.
For many, this means reevaluating their technology stack, including costly enterprise resource planning (ERP) systems. By identifying areas with bloated overhead, like legacy ERP software, businesses can uncover significant savings opportunities while improving efficiency and agility.
Here’s a breakdown of the most common types of overhead associated with large ERP systems:
Outdated technology creates compliance risks, which add to operating risk and costs with human capital or manual workaround processes.
Sample Cost for a Mid-Sized Insurance CompanyA mid-sized insurance company using a large ERP could easily spend upward of $250,000* implementing a new system, around $100,000* per year in licensing and support, and additional resources and time for IT and training over the ERP’s lifecycle.
Contracts typically require a 3-5 year commitment, further increasing the total cost of ownership.
*Estimates are based on market averages and may vary.
Flexi—built for insurance—offers faster deployment, lower total cost of ownership (TCO), and focused accounting functionality, without the added weight of unnecessary modules.
For mid-sized insurers, Flexi’s full-featured software includes everything you expect in a comprehensive, enterprise platform, including a powerful general ledger and financial suite, financial suite, workflow automation, and reporting and analytics tools.
Compared to a large ERP, Flexi delivers:
These savings stem from lower licensing fees, reduced implementation and maintenance costs. Flexi also offers the flexibility to scale with the business growth.
See how industry giant Mercury Insurance Group found success and value after switching to Flexi.
California has faced devastating wildfires over the years, with the most recent Los Angeles wildfires in January 2025 causing widespread destruction, loss of life, and financial losses for residents. These disasters have placed immense pressure on the state’s insurance system, increasing the need for accurate financial reporting and compliance.
Established in 1968, the California FAIR Plan serves as an “insurer of last resort,” providing coverage to homeowners who cannot obtain policies through private insurers. Over the years, demand for FAIR Plan coverage has surged as wildfires have grown more frequent and severe.
The L.A. wildfires have placed considerable pressure on California’s insurance system, affecting both the FAIR Plan and private insurers.
The FAIR Plan has received nearly 5,000 claims for damages caused by the Palisades and Eaton Fires and paid more than $1.2 billion to policyholders. A handful of major California insurers have reported losses of over $1 billion from the devastating loss.
The financial strain on the FAIR Plan is likely to have ripple effects across the insurance market:
This disaster has prompted calls for further reforms to stabilize California’s insurance market, with state regulators approving the FAIR Plan’s levying of a $1 billion assessment on private member insurers to offset losses from the wildfires.
The California wildfires have highlighted the critical need for strong planning to ensure financial stability and consumer confidence, not just for California insurers, but for FAIR Plans and private insurers across the country.
As insurers of last resort, FAIR Plans and similar state programs have been disproportionately affected by the growing incidence of weather-related catastrophe events across the country, including wildfires but also hurricanes, floods, and other severe weather events.
Louisiana saw a tripling of homeowners in its state program during the three years following Hurricane Laura in 2020. Florida’s state program grew rapidly after 2018, eventually implementing a “depopulation program” to transfer policies to private insurers.
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Today, FAIR Plans cover 32 states, including Washington, D.C., and Puerto Rico, with Colorado being the latest state to add a FAIR Plan.
Some states (including Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina, and Texas) have Beach and Windstorm plans – equivalent to FAIR Plans – to provide insurance coverage in designated areas against hurricanes and other severe windstorms.
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The fallout from the L.A. wildfires will increase the pressures faced by finance and accounting teams at California insurers. With possible new state regulations, there is more need than ever for insurance companies to have robust audit trail functionalities that meet regulatory requirements.
Insurance companies are being scrutinized and must adhere to strict financial reporting requirements set by the California Department of Insurance (CDI).
The increase in severe weather events across the U.S. will continue to create financial challenges for FAIR Plans and private insurers. Strong financial systems and controls will be essential to help insurers react to these market dislocations and attendant regulatory changes.
Accounting technology has a major role to play:
With increased calls for FAIR Plan and private insurer transparency, robust accounting systems that produce audit-ready financial statements will be key to public trust, particularly as insurers seek to justify rate adjustments and other business changes in response to new market realities.
Flexi has been a technology innovator in the insurance industry for more than 30 years.
Its general ledger and comprehensive accounting platform are purpose-built for insurance companies with special features that simplify statutory reporting, including:
See how Flexi’s software can streamline accounting for your business.
In part 1 of our ongoing Flexi Education Series, we sit down and talk to Schuyler Ryan CPA, AIAF – Assistant Vice President, Finance at Union Mutual
Marc Meyer: Hi Schuyler thanks for jumping on a quick call to talk about all-things insurance and accounting. You ready to do this?
Schuyler Ryan: I am!
MM: What do you see as the top accounting challenge(s) for insurance companies?
SR: One of the challenges we face in the Accounting field is being stuck in the past which hinders us from looking toward the future. To some extent, this will never change as we cannot report financials on a period before the period ends. Our role as accountants is often looking in the rearview mirror.
As an example, while the calendar year changes, the accounting department does not turn the calendar until late in the first quarter. For the insurance industry, this is largely due to the annual statement filing deadline of March 1st and continued prior year related filings through June 1st.
MM: Is this feeling that you are “stuck in the past” more of an accounting problem, or is it a process problem?
SR: I would say it is a mix. The accounting part of it is just the nature of our role. You cannot report on a period until it is closed, for example you cannot report on 12/31 financials until 1/1 because you have to close all of that activity. But there is also a process piece to it.
MM: Can it be “fixed?”
SR: There is certainly the opportunity to streamline our processes to close a financial period and complete required reporting more efficiently. By completing the close process sooner, we would have the opportunity to move on to the next period sooner. If we can move on to the next period sooner and have more real time information available, we would be better business partners to the rest of the Company.
MM: From a process standpoint, are there ways to speed that up?
SR: Yes, for us, we work on trying to get our entries in by the 5th business day after the close of the month. This has been an improvement for us – just a couple of years ago this was a real struggle. However, we continue to work toward improved efficiency in our processes for financial closing and reporting.
One example where Flexi has helped us to implement process efficiencies is in the realm of invoice processing and accruing for invoices at period-end. Once invoices are entered in the system, they’re automatically being accrued in our financials without having to do a manual entry.
MM: That is a great lead-in to my next question. Because of the proliferation of new tools and technologies, is it safe to say that your job is getting easier?
SR: I would say new tools and technologies make some of the more run of the mill bookkeeping tasks easier and more efficient. Overall, as referenced previously, we’ve seen a lot of improvement particularly in some more of the basic areas like creating journal entries and entering/processing invoices.
The automated workflow within Flexi for invoice processing and approvals is a time saver as is the ability to copy and paste journal entries. However, there are still complex accounting processes that require the skills of an Accountant. Being able to streamline some of the more basic tasks have helped to free up members of the team to take on more complex tasks that help them to develop and grow professionally.
MM: There could never be too much automation, could there be?
SR: In general, I would say no. But it must be careful automation. You do not want to automate a process that has so many nuances that you end up spending more time correcting automation (that’s done incorrectly) than if you had just done it manually. The goal is to automate things in a way that is effective.
We’re not able to automate everything and I think it’s because of all those nuances, but if you can get it to a good place then I don’t think there can be too much automation if it’s working effectively.
MM: You talked earlier about your staff and how you want them to employ more critical thinking and problem-solving skills. From your standpoint, are they embracing that mindset?
SR: I am incredibly proud of how our accounting department has embraced this growth mindset. I really want people who are visionaries, who are innovative, and who are thinking about things like, “How can we streamline this process? How can we help the company be the best that it can be?”
This has shifted over recent years and actually points back to an earlier interview on accounting automation that you did with Spencer Kuo in which he talked about that “bookkeeper mentality.” That mentality is gone. Accountants are no longer just “bean counters” anymore. We really need to be analytical and help the larger organization to make strategic decisions.
That transition of the person who wants to do the bookkeeping to someone who needs to be a problem solver is important. It’s critical to have a finance team full of critical thinkers and individuals who can embrace change and innovation.
MM: Do you think we are at the crossroads when it comes to the role of the accountant? When you interview new job candidates, do they know that is what you’re looking for? Do they realize the expectations in accounting have changed?
SR: That is a good question. I do think we are at the crossroads and we do need to make that shift. In terms of interviewing candidates, I am looking for someone who is a critical thinker, a problem solver, and who is not content with doing the same thing every day.
When you have these interviews and meet candidates, you can get a sense from people when you simply ask them, “What made you get into accounting?” Do they want to manage debits and credits, or do they want to think through and solve problems? There is a definite difference.
MM: That is an interesting question to ask because I would not even know what a typical response would be. But I guess it is safe to say that everyone gets in it for different reasons.
SR: When I first started in accounting, my thinking was, “I like the concept of everything balancing,” and that makes/made sense to me because accounting was very black and white. But now, it has really shifted to the fact that I feel like I am doing a different thing every day, I am forecasting, and I’m really thinking about how different decisions will impact the financials. So, my perspective has shifted for me throughout my career as I have learned that it is not so black and white after all.
MM: So, today’s accountant needs to be more well-rounded? Skilled?
SR: Skilled is a good way of phrasing it. Simply put, people must be smart. You cannot do this job by just following step-by-step instructions. I look for people who I know are going to be smart and who can think critically about the task at hand. I like members of the team to have diverse skills and backgrounds because they can challenge and encourage each other by offering different perspectives.
MM: Is it hard to find talent these days?
SR: Yes, it certainly can be. It is not as easy as you might think. Often, people see a job opening for an accountant and they think bookkeeper but that is not what I am looking for. There are more simplistic roles that are suitable for someone who fits into that role, so I don’t mean to discredit that. It is just that, for our team – in corporate accounting for insurance, for example – I am looking for someone who has a different skill set- analytical and forward-thinking.
MM: So, the notion of automation taking everyone’s jobs is not exactly happening anytime soon?
SR: No. 
MM: We are almost done. This has been great, by the way. So, challenge wise, what happens in the industry in five to ten years? Are we poised for a technical tsunami in which AI and automation just turn the industry upside down?
SR: When you say industry, are you speaking of Insurance or Accounting?
MM: Let’s make it a two-fold question then. Let’s talk first about accounting and then how accounting is affecting insurance.
SR: Got it. As far as AI and Automation, I do think they are both going to continue to shape the accounting field and again, it redefines the type of person you want to hire. Regarding what it means to the overall finance and accounting departments, if you can automate some of the more basic functions, we’re still going to have people working in accounting. It is just going to be different in terms of the problems we’re solving and the goals we’re trying to achieve.
In terms of insurance, it is probably not much different from other industries from an accounting perspective. But the insurance industry, as a whole, is seeing so much change in terms of automation and AI. When technology moves throughout the company it sort of pulls accounting along. So, when we’re automating other areas, it gets you thinking about how you can make these improvements in other departments. Accounting is no exception there.
MM: What’s on your wish list that could make your job easier?
SR: One of the reasons we implemented Flexi was to try and reduce our reliance on excel in our processes. I would like to see us continue to explore the capabilities of Flexi and optimizing it to reduce our reliance on Excel and improve our overall financial reporting structure. Any way that we can automate things that tend to be repetitive and that aren’t worth the brainpower of our team, I’m all for it.
MM: Schuyler, believe it or not, we are done! That went super quick. Thank you so much for your time. Have a great rest of your week!
SR: Thank you- you’re welcome!
In Part II of our ongoing Flexi Education Series, we sit down and talk to Michelle Lucero, Senior Accountant at New Mexico Mutual
Marc Meyer: Hi Michelle, thanks for taking the time to talk all things insurance and accounting, I really appreciate it.
Michelle Lucero: No problem
MM: How long have you been working at New Mexico Mutual?
ML: About 4.5 years.
MM: What’s one of your main challenges?
ML: Right now, my main challenge is that I do everything! We do not have a single focus such as AP or AR. We do it all.
We have ten companies, and we are responsible for the full close cycle of those companies, from beginning to end every month, quarter, and annual closing. Each of our accountants is responsible for at least two companies, sometimes up to four.
So, it is easy to say what our biggest challenge is, not just for me and my team but for the insurance industry as a whole and probably many industries. It is moving away from all the manual work and finding ways to automate our accounting!
MM: Would you say you are at the crossroads of manual processes and automation?
ML: Actually, we are at the very beginning. We are in talks now of how we can do it. With 150 employees, we are still a relatively small company. So unlike large companies that can more quickly “just do it,” we are at the beginning of discussions: what it looks like, how it can work for us, and how to implement.
MM: What about on a day-to-day level. What keeps you in the weeds? What are those things that come up every day that you cannot escape?
ML: Definitely manual processes, especially recons. I handle all of our bank account reconciliations, and everything is manual. As any accountant knows, reconciliations are extremely time consuming. With no automation behind it, it can be a very tedious process, like “copy the GL, paste it in here, and then manually compare your expenses against your bank data.
In addition to our big accounts, I also do all the benefit reconciliations too. And it’s pretty much the same process, including all the manual work.
MM: A couple of years ago I did some consulting work with a company in the RPA space. The ongoing concern or belief at the time was that RPA was going to eliminate jobs, but in your case, it sounds like automation would be a good thing for your company. Do you feel that way?
ML: I do. I agree with that. RPA and automation will provide opportunities for data analysis and enable us to actually look at the big picture. Right now, we can’t do that because we’re so busy looking at the small picture and the details of the constant manual work, we don’t have the time to look beyond that.
If anything, I think the bigger problem is that people are automated (robotic) in their thinking. When our thoughts are, “this is what I’ve got to do and this is why I’ve got to do it and this is when it’s got to be done,” there is nobody looking at the bigger things that matter more. So yes, there are a lot of opportunities for automation, not just in our processes but also changing mindsets.
MM: Ok, let’s talk more about the challenges. We discussed how adopting automation is a challenge for your company and probably many others. Are there any other (challenges) you face, for example, trying to juggle ten different companies? Is it trying to automate processes across the board?
ML: I think the challenges are one in the same. It’s the automation part for sure. But, because we have ten companies, our largeness mitigates a lot of problems that we might have.
One thing to keep in mind is that because we have ten companies, there is a lot of repetition in our accounting. We’re doing the same thing but for a different company, over and over again. It’s the same reports, just different numbers. Thus, if we had automation in place it would help exponentially. We could apply those time savings across all our companies!
MM: Interesting. So, after all is said and done, it does come down to automation as the main challenge. That’s awesome that you can identify it without doubt, or at least it is if you are going to do something about it.
ML: Right. But I also think the challenge of automation is that it deters other employees from wanting to learn the job. They don’t want to get down in the weeds and perform all this manual work.
For example, I’m going to be on maternity leave soon, so I am trying to teach somebody else the job and she doesn’t want to have anything to do with it because of the manual part of it. It scares her.
This is one of the hidden problems associated with NOT automating and continuing to do manual work. It can become a problem for companies in attracting new talent, especially with a younger generation and potential employees who are looking at a business as “all manual.”
MM: Chicken or the egg, right? Ok, so you got two questions left and you’re doing great! So, in your four years there, how have newer technologies and data security affected your world? What has changed from day one to now for you?
ML: Our reporting software. We used to use this really, old school software but that has changed for the better. That was a big change because it allowed us to reduce our manual work. Also moving to cloud-based services, like I know Flexi has one and we plan on utilizing that later this year when I get back from my leave. From a security standpoint, moving to cloud-based services is a great thing. It also allows our IT department to focus on other security issues.
MM: You know it’s interesting to see how cloud computing is rolling in like a fog into the accounting industry but there are still some on-prem hold-outs out there. But in the end, the cloud is the way to go. It’s pretty evident right?
ML: Yes, it frees up a lot of our servers and we spend a lot of money on servers. It’s even affected our AP function – we no longer use paper. Nobody is turning in paper anymore. Within my four years that’s been a big change. For example, I sit next to the AP Clerk and I used to see stacks of check requests but now we’re using Flexi Workflow and now everything is more automated and more organized, with much less room for error. It all really helps and that’s another automation perk that’s really beneficial.
MM: What’s on your wish list? What are you looking forward to when you come back from maternity leave?
ML: Ironically, I just got promoted last week and my boss mentioned that she wants me to drive the automation push. So, my first thing I want to do when I come back is move to Flexi’s cloud accounting software. That will be my first project.
After that, I want to work with our BA team so that we can look at where do we begin with the automation of our reports and possibly working with Flexi to see if we can do some type of accounting automation with our monthly entries. So those are my two biggies when I get back.
MM: How do you feel about AI?
ML: I’d welcome it, but I think we’re years away. Though I do think AI in accounting is applicable, or will be. You were talking about fraud earlier, I think that given that people are so in the weeds with work it’s easy for things to get overlooked or for people to game the system. So I think AI would be helpful in recognizing fraud. It would also again, allow people to focus on other things. So, it’s not taking jobs away but rather expanding knowledge and expanding the job.
MM: Two minutes left. What do you love about your job?
ML: My manager and my department. They are wonderful. Like, they’re awesome. I have a great team, great manager and great co-workers. I love that I’m given the opportunity to look for other ways of becoming more efficient and/or change things. They’re always open to new ideas. I love that I’m able to learn everything, it’s not just one section, my knowledge base increases constantly.
MM: You’ve been working from home since Covid hit?
ML: Yes and honestly, working from home has increased my productivity and my focus; no distractions. In fact, I’m amazed what I’ve done from home in a year versus what I could have done in the office.
MM: Michelle, we are done. I want to thank you for your time, your answers were awesome. Good luck on maternity leave and we will talk to you soon. Thank you so much.
ML: Thank you!
A Research study on Insurance Accounting Software Market analyzes and offers ideas of exhaustive research on ancient and recent Insurance Accounting Software market size. Along with the estimated future possibilities of the market and emerging trends in the Insurance Accounting Software market.
As per the report, the Insurance Accounting Software market is predicted to gain significant returns while registering a lucrative annual growth rate during the foreseen time period.
Flexi is among the leading providers of Insurance Accounting Software covered in the report. Request a copy from Express Journal.
Flexi automates the entire accounting workflow process and delivers ROI in months. As a result, your finance team can spend far less time on the close, consolidation, and reporting processes, instead focusing their efforts on being proactive and strategic.
With Flexi, you won’t be stuck with a costly system that leaves you unable to adapt to changing market or business needs. Flexi offers extreme flexibility in every way.
As such, insurance companies love using Flexi’s flexible financial management software for a variety of reasons. Here are just a few.
Flexi’s insurance accounting software comes with the following benefits:
Flexi’s open architecture allows flexibility to choose stand-alone modules as business needs dictate. But insurance companies will gain the ultimate speed and power with Flexi’s entire financial management software platform, uniquely designed to allow financial data to flow securely wherever it is needed, with full integration into policy, billing, and claims systems.
Flexi’s 25+ year history is rooted in serving industries where security, compliance, speed, and performance are paramount; industries such as insurance, banking, and healthcare.
Nearly 2,000 insurance and healthcare company sites rely on Flexi’s accounting software. Flexi’s integration with policy, billing, and claims systems creates superior efficiency and accuracy. Government entities also rely on Flexi to efficiently manage claim processing needs associated with healthcare programs and disaster relief assistance.
Flexi is uniquely designed to help insurance companies manage complex regulatory requirements and adapt to changing market demands.
There are many reasons to trust Flexi. Learn more about Flexi accounting software solutions to see why Flexi is a great fit for your insurance company. Call 800-353-9492 to set up a demo today.
The insurance industry depends on adept accounting software, and Flexi’s software currently supports nearly 2,000 insurance and healthcare companies. Flexi’s 25+ year history is rooted in serving industries where security, compliance, speed and performance are paramount; industries including the insurance field.
Flexi’s software integrates with policy, billing, and claims systems, creating superior efficiency and accuracy. Government entities also rely on Flexi to efficiently manage claim processing needs associated with healthcare programs and disaster relief assistance.
Watch a video to learn how Flexi is uniquely designed to help insurance companies manage complex regulatory requirements and adapt to changing market demands.
Flexi’s insurance accounting software offers the following capabilities and benefits:
Flexi is aptly named for its flexible software capabilities. Flexi’s open architecture allows flexibility to choose stand-alone modules as business needs dictate. But insurance companies will gain the ultimate speed and power with Flexi’s financial management software platform, uniquely designed to allow financial data to flow securely wherever it is needed.
Flexi offers a full suite of products to help your accounting staff perform and deliver–and save time while doing it.
With Flexi, you can streamline and automate labor-intensive financial management functions using accounts payable, general ledger, project management, and fixed asset solutions.
Flexi is an industry leader for a reason. With expertise in all aspects of accounting and 25 years experience, the Flexi team can offer the best of the best. Even better, Flexi offers cloud-based web services that not only streamline processes, but also make data accessible 24/7 from any device with an internet connection.
Learn more about Flexi accounting software solutions, or call 800-353-9492 to set up a demo today.
Flexi produces cloud-based financial management software built specifically for insurance companies. The software integrates with most policy, billing and claims systems, helping organizations in the insurance industry automate and streamline processes while staying compliant with regulatory requirements.
Flexi insurance accounting software solutions increase the overall efficiency of accounting processes. These software solutions allow users to remain competitive with the accounting tools and controls needed to manage complex regulatory requirements and adapt to changing market demands.
Flexi’s solutions simplify complex financial management with a fully-integrated suite of financial management software, professional services, and an experienced support staff.
Flexi’s insurance accounting software…
Flexi’s insurance accounting software solutions are proven for insurance companies. Some of the many features of the software include:
With Flexi’s insurance accounting software, it’s easy to automate and streamline both your accounting workflow processes and statutory reports with flexible financial management software.
Flexi’s solutions enable your organization to successfully compete in the dynamic insurance market. Automate and streamline your financial processes with the tools and controls to support complex regulatory requirements and changing market demands.
Flexi’s comprehensive financial management software simplifies and automates the entire accounting workflow process without compromising security. Open architecture meets even the most stringent security requirements yet allows data to flow seamlessly with any system.
Flexi delivers all the rich features you’d expect in a top tier accounting solution, but without the high cost. With quick implementation that can be deployed on-premises, in the cloud or in a hybrid environment, Flexi will not only simplify your accounting processes today, but also will have you ready to adapt quickly to market or business changes in your future.
Learn more about Flexi insurance accounting software solutions, or call 800-353-9492 to set up a demo today.
