Insurance payments — collection and reconciliation
SEPA SCT/SDD for premium collection, automatic camt.053 reconciliation and refund management.
What is the Insurance Payments module?
The Insurance Payments module automates premium collection, claim payouts, commission disbursements and bank reconciliation using the SEPA ISO 20022 standard. For collection it supports inbound SEPA SCT (spontaneous principal transfer) and outbound SEPA SDD (direct debit with mandate). For payouts it generates SCT batches to claim beneficiaries, brokers for commissions, reinsurers for cessions. Reconciliation works by reading the daily camt.053 from the bank: 90-95% automatic policy ↔ payment match, review workflow for ambiguous cases. Manages installment payment plans with automatic reminders and policy suspension on default.
Who uses the payments module
What the payments module does
- Premium collection via SEPA SCT (transfer) and SEPA SDD (direct debit)
- SDD mandate signing workflow via FEA
- 14-day SDD pre-notification (EPC Rulebook compliance)
- Installment payment plans with configurable schedule
- Automatic reminders 5/3/1 days before due date
- Automatic policy suspension on overdue default
- SCT pain.001 batches for claims, commissions, refunds
- Multi-bank: integration with N customer banks
- Automatic reconciliation via camt.053
- Exact / partial / ambiguous match with review workflow
- Pro-rata premium refund on policy cancellation
- Complete financial-movement audit trail
From policy issuance to reconciled collection
Policy payment setup
At issuance: plan choice (lump-sum vs installments), mode (SCT/SDD), SDD mandate signing if needed. Schedule generation.
Due-date notification
Automatic reminders to principal via email/SMS 5/3/1 days before. For SDD: formal pre-notification 14 days before debit.
Collection execution
SCT: principal makes the transfer spontaneously. SDD: module generates pain.008 and sends it to the bank for debit on the planned date.
camt.053 ingestion
Bank returns the daily statement. Module reads the file, extracts entries, runs match against expected policies.
Reconciliation
Exact match on remittance + IBAN + amount = automatic reconciliation + policy status update. Partial match = accounting review workflow.
Exception handling
SDD refusal: re-debit attempt + alert. Unidentified transfer: parking in accounting for investigation. Overdue default: automatic policy suspension.
Technical stack
Impact on technical accounting
Frequently asked questions about insurance payments
What's the difference between SEPA SCT and SEPA SDD?
SCT (SEPA Credit Transfer) is an outbound transfer: the originator (e.g. the insurer paying a claim) transfers funds to the beneficiary. SDD (SEPA Direct Debit) is a direct debit: the creditor (e.g. the insurer collecting a premium) pulls from the debtor's account upon authorisation (mandate). For periodic premium collection SDD is more efficient; for claim payouts and commissions SCT is used.
What are pain.001 and camt.053?
pain.001 is the ISO 20022 message the insurer sends to the bank to execute a batch of SEPA SCT transfers. camt.053 is the reverse message the bank sends back to the insurer with the daily account statement (balances, credits, debits). NewPicass 14.Net generates outbound pain.001 and processes inbound camt.053 for automatic reconciliation.
How does automatic premium-collection reconciliation work?
Every day the bank returns the camt.053 with all received transfers. The module reads the file, extracts the remittance information and originator IBAN for each entry, and seeks a match against pending policies. Exact match = automatic reconciliation. Partial or ambiguous match = review workflow for accounting. Typical automatic match rate: 90-95% for known IBANs, 70-80% for new IBANs.
Can you handle installment payment plans?
Yes. For high-premium policies the module supports semi-annual, quarterly or monthly installments with automatic schedule generation. Automatic reminders to the principal via email/SMS 5 days before due date. Missed payment beyond contractual terms = policy suspension + underwriter alert.
How is a premium refund handled?
When a policy is cancelled or reduced within terms, the system computes the premium share to refund (pro-rata temporis), generates an SCT to the principal's IBAN, records the credit note, syncs to the delegating insurer. Everything logged in audit trail. Typical time from request to refund: 2-3 business days.
Does the module manage SDD mandates for collection?
Yes. Complete mandate onboarding workflow: principal electronically signs (FEA) the SDD mandate, the module transmits it to the bank via SEPA Mandate, handles the first/recurring sequence, the 14-day pre-notification before debit, refusal and revocation handling. Compliant with the EPC SEPA Rulebook.
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