Fraud & Identity Fraud & Identity



Fraud & Identity Industry News

TMCNet:  SS&C Survey Reveals Insurers' Struggle with Regulatory and Accounting Compliance

[September 11, 2017]

SS&C Survey Reveals Insurers' Struggle with Regulatory and Accounting Compliance

WINDSOR, Conn., Sept. 11, 2017 /CNW/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), a global provider of financial services software and software-enabled services, today reported the results of its "2017 Insurance Asset Management Technology Outlook."  One of the key findings of the survey revealed that addressing local regulation and accounting standards was the leading operational challenge when it comes to firms' expansion strategies.

SS&C Technologies (PRNewsFoto/SS&C Technologies)

The survey was conducted among a global audience of over 145 insurance asset management professionals. Participants were asked to respond to seven questions on current challenges, concerns, and the future direction of their investment management operations.

"This year's survey signifies that insurers are becoming more comfortable with expanding their investment strategies. Processing new security types, ranked as the number one operational challenge of 2016, has become less significant in 2017. In fact, the percentage of participants that selected this as a top challenge dropped by more than half1," said Christy Bremner, Senior Vice President, SS&C Institutional and Investment Management. "However  as  global regulatory regimes grow more complex, insurance firms are required to produce more frequent and detailed disclosures on holdings and exposures. 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."

Operational Challenges

As firms employ new investment strategies, they require accounting for an expanding array of non-traditional instruments which present some challenges.Addressing regulatory and accounting standards (44 percent), lack of knowledge and talent (32 percent), processing new security types (17 percent), and coordinating with global entities (7 percent) are some the operational challenges faced. To help alleviate the burden on staff, firms are adding to their roster of external portfolio managers. In fact, 46 percent of those polled plan to increase use of external investment management over the next three years.


Firms in search of higher yields and greater portfolio diversification are gravitating toward private equity, hedge funds and other partnership investments (42 percent), as well as alternatives (22 percent). With new strategies and asset classes come new risks. Survey respondents cited overall operational risk (29 percent), cybersecurity (22 percent), and regulatory risk (18 percent) as their chief risk concerns. Market (17 percent), talent (10 percent) and model (4 percent) risks ranked low on the list of things keeping asset managers up at night.

The Data Explosion

Global asset growth, escalating trading volumes and increased reporting requirements have led to an explosion of data that needs to be organized, filtered and managed for analysis and reporting. Many firms are finding that large data infrastructures are increasingly difficult to maintain. As a result, the majority of insurance and asset management executives polled (61 percent) intend to increase technology spend within the next year to support investment operations.

"Maintaining data is a major hurdle for firms as it needs to be organized, accessible, and easily managed. Forward-thinking firms are looking ahead to solve this by increasing technology budgets to ease data management challenges," said David LaMonica, Head of U.S. Insurance at SS&C. "While the insurance industry has been slow to adopt technologies to manage data when compared to other industries, the survey shows that year-over-year progress is being made."

Over half of asset managers (58 percent) anticipate increasing use of cloud technology and hosting providers, a trend consistent with last year's study. Cloud-based technology hosting enables firms to not only improve accessibility of data, but also reduce their IT footprint and overhead. As operational models continue to evolve, insurance firms are taking a closer look at the overhead needed to support their core investment activities, while also driving greater efficiency. Rather than bolting on to legacy systems, many firms are choosing to partner with technology hosting and service providers to leverage innovative technologies and streamline processes.  

The complete report is available for download here.

1 Percentage of respondents that cited processing new security types as a top challenge dropped from 48 percent in 2016, to 17 percent in 2017.

About SS&C Technologies

SS&C is a global provider of investment and financial software-enabled services and software for the global financial services industry. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 11,000 financial services organizations, from the world's largest institutions to local firms, manage and account for their investments using SS&C's products and services.

Additional information about
SS&C (Nasdaq:SSNC) is available at www.ssctech.com.
Follow SS&C on Twitter, Linkedin and Facebook.

View original content with multimedia:http://www.prnewswire.com/news-releases/ssc-survey-reveals-insurers-struggle-with-regulatory-and-accounting-compliance-300516710.html

SOURCE SS&C


[ Back To Fraud & Identity's Homepage ]




Industry Insights

(MobileID) Proactive Fraud Prevention

Interconnect-related fraud such as International Revenue Share Fraud (IRSF) and PBX hacking fraud continue to be a billion dollar problem to the telecom industry.

(Defender Shield) Defense solutions for the modern SMS ecosystem

SMS is a ubiquitous communication method for person-to-person (P2P) text messaging, which has been in use globally for nearly 20 years.

(Defender Shield) Preventing Grey Routes and the Multi-billion dollar Threat

The convenience of mobile messaging has brought communication efficiency to billions of consumers worldwide. As is often the case with widely accepted technologies; however, convenience can provide a vulnerable gateway to fraudulent activity.

Product Documents

Asset Protect

While unlimited or high-volume voice and SMS plans offer great value to subscribers, sometimes fraudsters exploit these plans to avoid paying termination and interconnect fees.

Defender Shield

In a world with ever-increasing Application-to-Person (A2P) messaging needs and competition, improving customer satisfaction and eliminating revenue leakage is key for protecting SMS profits.

MobileID

Accurate and cost-efficient routing of voice calls and SMS is critical. Unfortunately, gathering reliable routing data on ported numbers and keeping up with constant changes in number plans is expensive and time-consuming.

Fraud Solutions

Communications fraud is a $20B annual global problem and growing. Companies are looking for peace of mind so that their business and their customers are protected from the onslaught of technology crime that is damaging their reputations and their balance sheets.