by Crystal Bueno
DTCC received an “Early Adopter” award from ACORD for its Replacement Processing service. This new system will help insurance carriers and their distributors when investors want to transfer – or, as it is called in the industry, “replace” – their insurance holdings.
For carriers, the new system will eliminate many of the costly and complex manual tasks involved with replacement processing. At the same time, the system will keep distributors – those who market insurance products – updated on their pending replacement contracts with participating trading partners.
Benefits of new service
Winning ACORD’s distinguished “Web Service Profile Award – Early Adopter Accomplishment” aptly demonstrates the benefits and cost savings of this newest product, which will be added to DTCC’s Insurance & Retirement Services suite of insurance processing solutions.
“Replacements – annuity 1035 exchanges, transfers or rollovers – are a significant part of the new business process for the insurance industry. In fact, a Gartner study a few years ago quantified at least 30% of variable annuity sales result from 1035 exchanges and other replacements,” said Adam Bryan, managing director, DTCC Insurance & Retirement Services.
For carriers, the new system will eliminate many of the costly and complex manual tasks involved with replacement processing.
“By enabling insurance companies to process these replacements using standard, automated technologies, we’ve proven in our pilot tests that we can help them reduce operating expenses, deliver higher levels of service to customers and distributors, and meet audit and compliance requirements,” he said.
The ACORD awards focus on the development of innovative implementations that highlight business value and business opportunities between trading partners, and recognize companies whose XML implementations have provided leadership in the way business is processed utilizing ACORD insurance data standards.
“DTCC is to be congratulated not only for earning this Early Adopter Award, but for showing the benefits that can be achieved by implementing ACORD standards,” said Lloyd Chumbley, vice president, Standards, ACORD.
“We are honored that ACORD has recognized DTCC and the Insurance & Retirement Services team with this award,” Bryan said. @