Improving Efficiency

DTCC Solves Critical Challenge for Asset Managers with New Insurance Service

Barbara Smith, Head of Insurance & Retirement Services | Nov 28, 2018

DTCC Solves Critical Challenge for Asset Managers with New Insurance Service

Early this year, my team set out to address the challenges asset managers face when offering their mutual funds lineup within variable insurance products. Our goal was to deliver a solution that would provide a clearer, consistent breakdown of information and help them streamline and gain insight into these complex transactions. The final design needed to be more intuitive to use for processing and receiving data. After gathering input from an industry group of 11 asset managers over the past 7 months, we’re excited to introduce a new service, Financial Activity for Asset Managers (FAM).

The new service brings the efficiency and reliability of DTCC’s centralized network to asset managers in the insurance industry. Most significantly, FAM gives asset managers the ability to track money movement within the investment portfolios of variable annuity products, and provides financial transactional details within a variable contract from the insurance carriers to their distribution partners on a daily basis.

Consequently, we designed FAM to ingest data from Financial Activity Reporting (FAR), one of our longest-running services in the I&RS family. For nearly 20 years, FAR has provided carriers with an accurate picture of their group annuity and life accounts. By tapping into this established database, we are able to track financial transactions within the product sub-accounts that contain the asset managers’ mutual fund investment options, like new or subsequent premium, asset rebalancing, full or partial surrenders, or death claims, and provide asset managers with more cohesive information.

The depth of this data and level of transparency is immensely powerful, and will provide deeper and more powerful insights to the non-retail side of the insurance market. We’re excited to offer FAM, and to continue to work in tandem with the industry to adapt the service as needs evolve.

Learn more about FAM.


 

 

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