Building solutions that foster efficiency and growth in the life insurance sector and heightened regulatory requirements facing the industry were the key areas of focus at The Depository Trust & Clearing Corporation’s (DTCC) Insurance & Retirement Services (I&RS) Senior Advisory Board (SAB) meeting in April.
The 42-member SAB, which comprises both large and small insurance carrier and distribution firms, plays a key role in guiding development and advocating adoption of DTCC IR&S initiatives in the industry.
Led by members of DTCC’s I&RS, the meeting focused on ways DTCC can support ongoing industry efforts to expand the life insurance business across most distribution firms by: 1) supporting in-force transactions and reporting services; and 2) building greater efficiency into the current sales and order entry process. It was widely agreed that automating those processes will help reduce overhead costs and allow firms to devote more resources to strategic business growth initiatives.
“The SAB recognized that the industry must maintain a focus on providing high quality data and standards specific to the needs of the life insurance segment,” noted Leonard Schmitt, Group Director, I&RS Relationship Management. “At the same time board members noted that it would be critical to also leverage existing platforms and services developed for annuities where it makes sense, in order to more effectively manage development cost and take advantage of lessons learned.”
Another topic of discussion centered on the potential benefits of I&RS providing data repository services to support compliance and regulatory functions, client self-service, and other functional areas.
One board member stressed the effort should “include evaluation of processes and tools for data refinement within a data warehouse environment, including improving conformity and quality of the data prior to industry usage.”
The SAB also agreed that a regulatory reporting service would be valuable to the industry and recommended that moving forward with such an initiative be brought to the SIFMA Compliance group for further discussion.
Calling it critical to the initiative’s success, Adam Bryan, DTCC Managing Director and General Manager, I&RS, urged the Board to socialize and promote the regulatory reporting initiative to the business, compliance, legal and privacy teams within their respective firms.
Summarizing the overall value of the April meeting, Bryan also noted that “bringing together our SAB members provides an excellent opportunity to engage our stakeholders and identify ways DTCC can continue to support industry needs. It also helps us to raise awareness around the work we are doing to mitigate risk, reduce costs and create market efficiencies for our clients.”