CARSTM Audit and Reconciliation

CARSTM – Reconciliation – Accuracy to 0.001%

You have carefully implemented processes and procedures in order to ensure the accuracy of your financial statements.  But who checks the accuracy of policy values provided by your BOLI carriers?  Manual reasonableness checks may provide limited comfort, but can leave money on the table.  We are the only BOLI/COLI administrator with a proprietary, automated reconciliation system that mimics the idiosyncrasies of the systems used by five major insurance companies – down to each certificate, Unit Value and Net Asset Value.

Our system, COLI Administration and Reconciliation System (CARS™), independently reconciles every charge and transaction– with a benchmark accuracy to 1/1000th of one percent (0.001%).  This includes variable separate account BOLI with Stable Value Protection. As a result, you don’t have to worry whether or not monthly values reported by the insurer contain material errors.


The Value of CARS™ Hits Your Bottom Line

Client Example

A BOLI administrator had assured a bank that values reported by its insurer were accurate.  Using CARSTM, we discovered a small calculation error that had been compounding for several years, adding up to a $5 million overcharge. 

Our client received a full refund, including interest, with our help.


CARS™ Key Statistics

  • Compatible with pricing and administrative practices of 5 major BOLI carriers
  • 129 separate account investment sub-accounts supported
  • 55,000 certificates installed
  • More than 150 million transactions reconciled
  • Over $20 billion of BOLI assets reconciled monthly

The CARSTM audit process is far more detailed, automated, cost-effective and reliable than spreadsheet-based checks.  Therefore, it is more responsive to the increased operational risk characteristics of separate account BOLI plans, and is consistent with the requirements of Sarbanes Oxley.

When meaningful discrepancies are identified, resulting in a miscalculation of a given charge or credit, we notify our client and the carrier and immediately commence an investigation into the source of the problem.

To learn more about CARSTM and our methodology, contact us by clicking here.