Insurance-focused asset managers face increased competition in winning portfolio management mandates from insurance companies. Such allocation decisions from insurers are no longer solely based on performance. Many insurers are now looking for additional data, analytical insights and value-added services from their asset management providers.
Insurance companies are increasingly seeking asset managers who can deliver more than just investment expertise—they need partners who excel in accounting, reporting and regulatory compliance. For specialized managers, this presents an opportunity to differentiate themselves, and expand their insurance portfolios, and win more mandates from insurers.
Here are three value-added services that asset managers can offer to win more insurance mandates:
- Regulatory & Risk-Based Capital Alignment
- Asset ratings and classifications that align with insurers’ NAIC Securities Valuation Office (SVO) designations, to ensure optimal capital treatment.
- Tailored valuation policies for private market investments, along with timely valuation updates, cash flow and income projections.
- Customized Reporting:
- Insurance-specific analytics, such as statutory book values and yields on positions.
- Online access to customizable portfolio reporting and analytics across all public and private investments.
- Tailored Expertise:
- Outsourced, multi-basis investment accounting.
- Quarterly and annual NAIC statutory statement preparation, review and filing assistance.
Asset managers who can successfully offer the services above as part of their asset management fee offer a more compelling reason for an insurer to allocate more or even all their capital to the manager, while making the relationship sticky. It’s far easier to switch asset managers if investment accounting services and regulatory filing processes are not provided by the asset manager.
Choosing the Right Partner
To that end, more insurance-focused asset managers are partnering with providers like SS&C to offer these value-added services to their insurance clients and prospects. Through Singularity, SS&C’s state-of-the-art multi-basis insurance accounting platform, managers can provide robust statutory, GAAP and tax basis accounting and financial reporting to their insurance clients, on partial or full investment portfolios. And unlike some other service providers, SS&C’s platform facilitates automated trade capture, processing, reconciliation and accounting for all investment types—public and private, equity and credit—enabling managers to take on larger, more complex and diversified investment portfolios from life & annuity, health and reinsurance clients.
Furthermore, SS&C’s Singularity platform is a cloud-native SaaS platform enabling managers to provide their insurance clients with real-time access to holdings, transactions and events, and tailored reporting through an intuitive online user interface.
SS&C also provides unmatched expertise in insurance accounting and regulatory support, enabling asset managers to meet insurers' complex compliance and regulatory reporting needs. By working with SS&C’s team of outsourcing experts, managers can offer their insurance clients:
- Regulatory Alignment: Ensuring security classifications, valuations, ratings and filings meet strict regulatory standards.
- Risk-Based Capital (RBC) Calculations: Optimizing insurers’ use of capital with accurate RBC calculations, tailored to their portfolios.
- Customized Reporting: Through automated, personalized reporting packages that ensure timely and accurate delivery of relevant information.
- Accounting Services: Leveraging specialized knowledge in multi-basis investment accounting, tax accounting and data integrity to assist insurance clients with audit or regulatory inquiries.
Finally, SS&C’s service model offers flexible, cost-efficient options for asset managers, enabling them to offer their insurance clients and prospects:
- Bundled Pricing: So that managers can incorporate SS&C fees into their own, providing insurers with competitive, vertically integrated solutions.
- Flexible Engagement Models: Whether through SaaS, co-sourcing or outsourcing, SS&C can tailor the operating and service delivery model to fit the unique needs of each manager and insurer.
This affordability, flexibility and scalability make it easier for asset managers to attract and retain insurance clients and assets, regardless of their size or complexity.
Position Yourself for Growth
Insurance-focused asset managers have a unique opportunity to grow their insurance portfolios by partnering with SS&C. The right combination of advanced technology, tailored expertise and cost-effective solutions allows managers to deliver the comprehensive value-added services today’s insurers demand. By addressing operational, regulatory and financial needs, SS&C helps asset managers stand out in a competitive marketplace.
Ready to grow your insurance portfolio? Contact SS&C today to learn how the Singularity platform and SS&C service experts can give you a winning edge.
