When a Customer Comes to Work at DTCC…

Leonard Schmitt, standing far right, joins the 2008 Insurance Services Team at DTCC. Front row seated (left to right): Craig Gurien, Briana Moskovic, Susan Nugent, John Ziambras. Back row (left to right) Christopher Poisella, Jamie Taylor, Lana Macumber, Sheryl Thomas, Steven Acosta, Jeanann Smith, Randi Gordon and Cory Stark, Leonard Schmitt.

"The story of my arrival at DTCC could be titled ‘Things I Didn’t Know’,” said the new head of Customer Relationship Management for Insurance Services, Leonard Schmitt.

The former executive director of Morgan Stanley’s Insurance Operations, Schmitt brings 19 years of experience in operations and technology to his role at DTCC. In his new position, Schmitt will focus on relationship-building and helping IS to expand its role as the industry utility for transaction processing.

Change of perspective

Even with Schmitt’s extensive knowledge of the insurance industry, joining DTCC has been an eye-opener. “The breadth and depth of the organization and its responsibilities boggle the mind,” he said.

At Morgan Stanley, Schmitt’s view of post-transaction processing was that of a satisfied customer. Insurance Services reliably delivered seamless, low-cost execution, and thus didn’t really register on the radar screen. “Everything worked so well that, from a business perspective, there was little need to focus on the details of what was actually being done,” he said.

Then came Schmitt’s move to the infrastructure side of the business. From his first day on the job, Schmitt was struck by the magnitude of the work necessary for DTCC to deliver the myriad “seamless” tasks that underpin the industry, along with the responsibility.

Also new was the concept of customer service on an industry-wide scale. At DTCC, it is not just a question of serving an individual firm, Schmitt noted. Rather, products and services have to meet the needs of an entire industry.

Different vantage point

Coming from Morgan Stanley, Schmitt is no stranger to the culture of service that characterizes DTCC subsidiaries. A significant difference, however, exists in the way a product or service is brought to market.

The development of a solution for Insurance Services requires a collaborative, industry-wide effort. Indeed, the Insurance Services product development team must forge consensus across the industry and secure the commitment of stakeholders to plan, pilot and produce a successful solution.

The potential reach of a product is equally broad. “The impact of a successful service goes far beyond a single company; it can help to fundamentally change the way the industry does business,” he said. Indeed, the prospect of helping to transform the insurance industry at a time of great change was one of the attractions of moving to an entirely new environment at DTCC, Schmitt noted.

“I am tremendously excited by this new role at DTCC,” he said. “It provides an opportunity to grapple with some of the fundamental issues facing the insurance industry from a very different vantage point. I look forward to working with my colleagues at DTCC to help carriers and distributors develop faster, easier and cheaper ways to sell more products and serve more customers.”

Expanding the franchise

Schmitt assumes his new position as the business begins its second decade of operation with record volumes, solid growth and an expanding roster of customers. He reports to John Ziambras, DTCC managing director and general manager, Insurance Services.

“Lenny joins the organization at a critical point in our history of collaborating with the industry,” said Ziambras. “As we work to increase automation and standardization, and reduce risk in the processing of insurance transactions, Lenny’s long and outstanding record of success with Morgan Stanley and his distinguished reputation in the industry add another dimension to our ability to understand, meet and exceed customers’ needs.”

More on Schmitt

Schmitt started his career with Dean Witter Reynolds in 1988 and served in a variety of management and executive positions. Since 2005, Schmitt served as executive director of Insurance Operations & Financial Reporting for Morgan Stanley and most recently was responsible for the financial advisor experience and platform for Insurance and Annuity Services.