For Immediate Release
SS&C Survey Finds Insurance Firms To Increase Technology Spend Over Next 12 Months
WINDSOR, CT, September 12, 2018 (PR NEWSWIRE) – SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), a global provider of financial services software and software-enabled services, today reported the results of its “2018 Insurance Asset Management Technology Outlook.” The survey revealed that almost half of investment managers (44 percent) are increasing technology spend over the next 12 months. Only four percent of respondents cited a decrease in technology spend over the next year, making it clear that technology continues to play an important role in investment operations.
Key takeaways from the Insurance Asset Management Technology Outlook reveal:
- Risk Focus: As more firms turn to technology to help with daily operations, cybersecurity risks were cited as the top concern (37 percent), followed by operational risk (22 percent) and regulatory risk (15 percent).
- Asset Class Preferences: Insurance asset managers are seeking to boost portfolio allocations in private equity, hedge funds and other partnership investments (36 percent), while also looking to diversify by investing in alternatives (22 percent) and commercial loans (16 percent).
- Outsourcing: A majority of respondents (75 percent) are staying at current levels as it relates to outsourcing investment operations functions, with 20 percent reporting an increase in outsourcing over the next year. Additionally, about a third of respondents (29 percent), plan on increased use of external investment management.
- Operational Challenges: Almost half of respondents (41 percent) found the biggest operational challenge to expansion to be local regulations and accounting standards, followed by lack of knowledge and talent (28 percent) and processing new security types (21 percent).
“As more insurance companies seek to diversify their portfolio allocations across asset classes, it highlights the need to have a single platform in place that’s capable of accounting for and reporting on a broad range of investments,” said Christy Bremner, Senior Vice President, SS&C Institutional and Investment Management. “This directly correlates with the uptick in technology spend we’re seeing from firms as they look to streamline operations and have a holistic view of their data plus risk factors within each portfolio.”
The survey was conducted in Q2 2018 among a global audience of 128 insurance asset management professionals at a gathering hosted by the Insurance Accounting & Systems Association (IASA). Participants were asked to respond to seven questions on current challenges, concerns, and the future direction of their investment management operations.
The complete report is available for download here.
About SS&C Technologies
SS&C is a global provider of investment and financial software-enabled services and software for the global financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 13,000 financial services and healthcare organizations, from the world's largest institutions to local firms, manage and account for their investments using SS&C's products and services.
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