Operations and technology evolving quickly for insurers

By: Elena Kulakovska

In today’s low-yield environment, quests for higher returns are making insurers’ portfolios more complex. Firms are investing globally and diversifying their mix of assets, and the accounting of the investments in these non-traditional asset classes is increasingly difficult. Spreadsheets and conventional systems limit the accounting and reporting capabilities, so many insurance companies are turning to outsourcing models.

In addition, the demand for increased transparency also increases pressure to adopt new technologies or outsource middle- and back-office operations.

In-house operations infrastructures often cannot handle middle- and back-office functions for complex instruments. A growing number of insurance companies are increasing their allocations to OTC, derivatives, loans as well as private equity as an asset class which makes operations highly-manual, resource-intensive, and high-risk. Most in-house technology is not straight-through processing.  Hence insurers are increasingly outsourcing these functions to streamline their operations and provide stakeholders with reliable metrics and full transparency.

We learned at the IASA Texas chapter conference that outsourcing certain middle- and back-office functions drives greater efficiency, reduces operational risk, cuts costs and allows companies to focus resources on core investment activities. Insurance companies must consider the impact these trends have on their bottom line so that they can evaluate the operational infrastructure needed to support their core mission and investment activities.

GoTrade+™ from SS&C is a first-class highly flexible service for complex investment portfolios.  Available as a stand-alone OTC derivatives service or as a complete commoditized end-to-end solution, GoTrade+ is designed to fit within existing infrastructure. GoTrade+ “plugs” into the trade source and manages everything “after the trade”, seamlessly delivering clean trade data to the back-office system.

GoTrade+ automates trade capture as trades occur over a real-time web-based portal providing full transparency and instant access to trade life cycle status, relevant documents, valuations, exposures, collateral and cash positions. Clients can trade with confidence, knowing that the most complex trades will be followed through by a highly experienced and expert team.

SS&C Global Gateway gives investment managers the ability to account for and report on any traded asset class and new ones as they arise. With comprehensive investment reporting, combined with portfolio and operational analytics, SS&C Global Gateway delivers performance/attribution reporting, multicurrency reporting, robust tax reporting, global risk assessment, and full Solvency II compliance.

SS&C Global Gateway combines the expertise of our leading investment accounting team with the industry’s best-in-class technology, giving us the speed and agility to service any new market, asset class or regulation. 

For more information please contact Elena Kulakovska at ekulakov@sscinc.com.