IS/Industry Collaboration Strengthened in SAB Meetings
The next meeting of the Senior Advisory Board (SAB) for Insurance Services scheduled for June 2008 already promises more of the “roll-up-our-sleeves-and-tackle-the-problems-before-us” spirit very much in evidence at the first two meetings of the group convened in May and November of 2007.
The first meeting in May 2007 prepared the groundwork for the work of the SAB made up initially of senior-level representatives of 13 carriers and 12 broker/dealers established to address automation and standardization issues facing the insurance industry. At the second meeting, a nearly full house and a substantial exchange of ideas and information underscored the value of the high-level collaborative process at the new forum.
With John Ziambras, DTCC managing director and general manager, Insurance Services, acting as moderator, the Board quickly turned to key items raised at its May inaugural meeting, including new Insurance Services products and expanded usage of existing products. DTCC staff provided updates on product development and usage and led an exchange of views on the issues surrounding the plans for 2008.
“The high-level participation, the energy and commitment of participants and the open, frank nature of the dialogue underscores the urgency of the issues facing the industry and the value of the work by the Senior Advisory Board and the Carrier Steering Committee,” said John Ziambras, managing director. “We envisioned the Board to be an industry forum to provide DTCC with feedback and guidance as we continue to automate and standardize the processing of insurance product transactions. The group’s work has surpassed our expectations.”
Key issues
SAB representatives offered candid assessments of the status of the industry’s straight-through-processing initiative. They cited vendor dependency in implementing order entry applications as a factor that has and may continue to slow the expansion of newer insurance services such as Licensing & Appointments (LNA) and ACATS for Insurance. The group reviewed the 2007-08 plans for roll-out of new Fund Transfers, Replacements and Attachments services.
The development of LNA AccessSM as a front-end application for the full LNA service received substantial support as a “proof-of-concept” model for other possible front-end products to increase product utilization.
The meeting also dealt with developments in the retirement income area, regulatory issues, expanding distribution channels and new partnership opportunities for DTCC with other solution and service providers.Expanding DTCC’s role
Acknowledging DTCC’s significant progress to date, participants in the SAB forum expressed strong support for strengthening DTCC’s leadership role in the effort to centralize automation and standardization of annuities processing. The industry representatives requested that Insurance Services continue its strategic planning for the implementation of automation for insurance processing, further defining the DTCC leadership role in realizing the NAVA STP initiative. The June 2008 meeting is expected to move this process forward.
Watch for the news from the June 2008 Senior Advisory Board Meetings in a new version of Insurance Services coming in June 2008.
“The industry recognizes and appreciates the value of our at-cost business model and customer focus,” Ziambras said. “The 25 firms represented on the SAB produce more than 75% of our volume and two-thirds of our revenue. They are well-positioned to drive usage of our services through more distribution channels and to validate our future role as a central utility for the insurance industry.”
The SAB meeting in November 2007 was followed the next day by the second meeting of Insurance Services’ Carrier Steering Committee, formed in conjunction with the Senior Advisory Board.