Today, technology plays an invaluable role in insurance investment accounting and operations, yet many insurers remain challenged by legacy technology platforms that are outdated, underutilized and lacking in required functionality. With multiple overlapping and redundant systems that each do part or most of what is needed, the end result is significant offline processes and manual workarounds that introduce human error, risk, extra reconciliation work and audit scrutiny. Compounded by existing system limitations, empty vendor promises and missed deliverables, there is also the uncertainty about the long-term viability and integration capabilities of their current investment accounting solutions.
The insurance investment industry maintains investment portfolios that range in both size and complexity, including those that are internally managed and those that are managed by multiple, third-party asset managers; company structures that include multiple levels of accounting and consolidation across different jurisdictions; and investment accounting requirements that include multiple currencies and accounting bases.
SS&C has utilized its position as a leading software and outsourcing services provider as well as its active trade group participation and industry involvement to listen to the insurance community. Regardless of size or complexity, some of the common themes we hear every day from non-SS&C customers include the desire to:
- Implement an automated straight-through-processing environment with single point of data entry
- Quickly respond to market conditions, pursue new investment opportunities and address regulatory changes without limitations or delays
- Mitigate risk and audit scrutiny by significantly reducing reliance on spreadsheets and manual processes to account for complex asset classes
- Simplify data access with easy-to-use data inquiry tools and modern API-based integration approaches
- Achieve a consolidated view of the entire investment portfolio across all asset classes, including core fixed income and equities, commercial mortgage loans, derivatives, and alternatives
- Provide more timely, accurate and meaningful reporting and analytics to management, the board of directors and other key internal stakeholders
Given current market conditions, more and more insurance companies are looking to increase their exposure to commercial mortgage loans and complex alternative investments, implement innovative technologies to enable their remote workforce and leverage data to drive their strategic decision-making. Insurance companies need a partner that will not only help them navigate these uncertain times but that over the long-term will also provide them with the most flexibility without having to give up control of the critical investment operations and accounting functions that are core to their business.
The original market served by SS&C was insurance, and we have continued this focus and commitment through our 34-year history. We feel strongly that SS&C is in a unique position to offer the global insurance community not only high-quality software, but also operational support services and access to expertise to help run our clients’ insurance investment business more effectively.
American Fidelity Assurance Company recently selected SS&C Singularity for its unique, AI-driven investment operations and accounting capabilities, broad asset coverage, cloud-based mobile accessibility and strong embedded analytics, coupled with Precision LM for the origination, servicing and accounting of its commercial mortgage loans. SS&C’s ability to provide a single, flexible, multi-basis accounting platform and strong support for all core and alternative assets is expected to significantly enhance American Fidelity’s operational efficiency (read the full press release).
To learn about how the insurance investment industry is evolving and how SS&C can help you stay ahead, we encourage you to download our whitepaper: 5 Trends Insurers Can’t Ignore. You can also provide your input and feedback by completing our short online survey and receive a $25 Amazon gift card.
Alternative Investments, Insurance