Message from Insurance Services
Our second decade of service to the insurance industry has started the best way possible as we delivered on our core commitment to our customers to reduce costs. Our largest fee reduction to date went into effect on January 2 with the end of all file fees associated with insurance products. These fees had been linked to all of the older core products. With the end of file fees, customers will pay only per transaction costs for the services. The change is projected to deliver to customers across the board over $6 million in total annual savings.
A Big Year Ahead
This year has the potential to be the best yet for our customers and the industry. We have dedicated more resources to provide more direct customer information services, such as new Web site information, and our new P.I.E.R. reports capability to keep you updated monthly on your usage of DTCC services with your key trading partners.
Our relationship managers continue to build stronger links with each of you to ensure that all of your concerns, questions and needs are resolved in a timely manner. In that regard, we began the year with two important organizational changes to our Insurance Services team. Lenny Schmitt, former Executive Director of Morgan Stanley’s Insurance Operations, has joined us to head up the customer relationship management area. In addition, Lana Macumber, a key part of our management lineup since joining us in 2003, has assumed the leadership of Strategy and Business Development, an important new initiative to further develop our automation strategy with the industry.
The Power of Collaboration
A new level of collaboration is emerging between Insurance Services and our customers as we expand our strategic planning for the implementation of automation, standardization and centralization for insurance transactions and information exchange.
At the industry level, our work with the Senior Advisory Board (SAB) and the Carrier Steering Committee (CSC) and our strong relationship with the Association of Insured Retirement Solutions (NAVA) are instrumental in identifying new ways to support the NAVA STP initiative for the industry. We look forward to the next meetings of the SAB in June 2008.
New Product Lineup
While we collaborate to build a long-term view of strategic goals, our development of new services continues in response to the prioritized needs identified by our customers through the SAB and CSC. Fund Transfers, the newest addition to DTCC’s family of Insurance Services, began integrated pilot testing on October 8, 2007 and we anticipate customer integration in 2Q 2008. This new Web-based solution allows distributors to monitor rep-initiated transfers, reduces the risk of unauthorized transactions, creates a single solution for communicating with trading partners and improves the rep experience.
Fund Transfers is our first of several services being developed using ACORD XML standard data messaging in a real time environment. In 2008, the next additions to our family of services, Attachments and Replacements, will incorporate ACORD XML standards, demonstrating our continued commitment to open standards and to the NAVA straight-through processing initiative for annuities.
We are also excited about the development of LNA AccessSM – our new standalone tool that will enhance the critical Licensing & Appointments (LNA) service by allowing distributors easy, Web-based access to submit requests and receive confirmations regarding their producers. The new capability is part of our on-going effort to mitigate vendor dependencies and expand access and usage of our services by additional distribution channels.
Strengthening Our Role
In the months ahead at DTCC, we are prepared to strengthen our role as the industry utility with all of the processing and storage capabilities that have transformed other major financial sectors. We confirm our commitment to the business goals of our customers, helping to grow your business, reduce risk and lower costs.
John Ziambras
Managing Director and General Manager
Insurance Services at DTCC