Revenue budgeting per business area and letter item
At the beginning of the project, the focus was to develop models for the budget process. Responsibility for revenue budgeting lies on the market side and is divided into the business areas Sak, Bank, and Liv.
It is important that the input in Mercur Business Control can be customized in different forms that reflect the business model for three different business areas. Within the non-life insurance part, Dalarnas Insurance Company is based on the current portfolio per type of insurance, so-called letter object, namely. traffic, hull, villa, home, business, agriculture, and so on, and indicate the number and amount. Furthermore, the stock change is calculated by entering index increases, premium adjustments, stock increases, and cancellations.
After the automatic calculation of various discounts, budgeted premium income is generated. Similarly, within Bank, the budget specifies volume and marginal per financial service that generates the bank's budgeted net interest income, and within the business area, Life Budget sells the new generates the compensation received from Länsförsäkringar Liv for the brokered transaction.
Also, the system is designed to budget the various reinsurance pools for both received and departed businesses.