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As insurance companies invest in more complex assets, they can benefit from upgraded technology capabilities.

As interest rates have dropped and remained low over the past decade, insurers have turned to more complex investing strategies like derivatives and alternatives to generate higher returns. As they’ve found their way in these high-yield investments, many haven’t changed their back-office systems to support them.

Technology has advanced to provide the possibility of one back-office platform with one dataset that covers all financial product types. Modern cloud-based suites allow asset managers to track all data in one place, negating the need for multiple systems.

The digital transformation of insurance asset management systems and strategies comes down to two main benefits that stand to make back-office operations more efficient, allowing insurers to find greater overall success in terms of returns and industry competition.

  • Increased productivity – Modern fintech solutions allow for less staff time invested in carrying out asset administration needs.
  • Decreased risk – By turning to automation for carrying out the recording of asset data and merging of different datasets, the risk for human error is greatly reduced.

As insurers begin to seek out the right cloud-based solution they should engage with a technology partner that offers service alongside their tech solution so they are not left in the dark for maintenance or troubleshooting. Committing to digital transformation by upgrading the tools that drive investment strategies will set insurers on a track to decrease risk, generate alpha and outperform competitors.

Committing to digital transformation by upgrading the tools that drive investment strategies will set insurers on a track to decrease risk, generate alpha and outperform competitors.

Download the full whitepaper to learn more.

  

Christopher Dvorak

Christopher Dvorak

Head of Insurance Solutions
As the Head of Insurance Solutions, Chris leads all aspects of Northern Trust’s relationships with insurance companies, including their insurance asset bases, as well as their defined benefit and defined contribution plans.