By: Luke Jones, Published on September 12, 2017 12:12 PM, Last Update on September 12, 2017 09:13 AM
Insurance companies are increasingly struggling to keep pace with regulatory reporting requirements, a new study shows. Investment in complex securities is on the rise, but data management is becoming a challenge for insurance companies as they try to meet regulatory demands.
A survey titled 2017 Insurance Asset Management Technology Outlook was released on Monday and finds meeting local regulation and accounting standards is the biggest operational challenge facing insurance companies going through expansion.
The survey was commissioned by SS&C Technologies Holdings Inc., a Windsor based company that provides financial services software. In the study, the company surveyed 145 global insurance and assets professionals. Each respondent was asked seven questions on challenges they currently face and concerns they have for future investment management operations.
Christy Bremner, senior vice president of SS&C institutional and investment management, says the survey shows companies are now happy to expand investment strategies. “Processing new security types, ranked as the number one operational challenge of 2016, has become less significant in 2017,” she says. “In fact, the percentage of participants that selected this as a top challenge dropped by more than half.”
“However, as global regulatory regimes grow more complex, insurance firms are required to produce more frequent and detailed disclosures on holdings and exposures,” Bremner continued. “A single system capable of accounting for and reporting on a broad range of asset classes significantly reduces the operational risks posed by a patchwork of systems. Our survey shows that firms are responding by increasing both technology spend as well as adoption of cloud and hosting providers.”