Overview

Currently, the insurance industry relies on manual processing for transferring insurance funds between carriers and contra-side brokerage accounts, increasing risks for misrouted money and inefficiently utilizing resources. With increased focus on compliance and risk management, and an exponential increase in withdrawals expected due to rising numbers of baby boomer retirements, there is a great need to have an effective means for coordinating the movement of insurance withdrawals for systematic withdrawals, partial surrenders, and mandatory required distributions back to the client’s brokerage account.

STL, an expansion of the InForce Transactions suite of products, leverages the one-of-a-kind Money Settlement Service to report activity — including the Money Settlement Detail (MSD) data file and the net settlement obligation Money Settlement Summary (MSS) data file — to both parties of a transaction.

Who Can Use The Service

This service is available to all eligible full-service Insurance & Retirement Services (I&RS) carrier and distributor members.

Benefits

• Helps carriers and distributors better manage and automate settlement withdrawal responsibilities, including the settlement of Life renewal premiums
• Mitigates potential for misrouted money by giving members the means to automate in an efficient environment with reduced manual intervention
• Provides straight forward instruction for withdrawn Insurance funds — including systemic withdrawals, partial surrenders and mandatory distributions, to name a few — into the brokerage account for future investment opportunities…allowing for greater retention of assets
• Lowers processing costs and elapsed time for settlement services
• Enhances ability to support expected increase of retiring baby boomer transactions
• Standardized record layout format
• Minimal development requirements
• Integrates with the National Securities Clearing Corporation’s (NSCC’s) Money Settlement Service, with same-day settlement available
• Provides secure data processing through DTCC’s Securely Managed and Reliable Technology (SMART) network

For More Information

Email us at insurance@dtcc.com or contact your I&RS relationship manager.