Officials say the updated solution’s features will help annuity carriers coordinate front, middle, and back-office functions.
Financial software solutions provider Finastra has added functionality to its investment management system, Fusion Invest, that is intended to help annuity carriers coordinate front, middle, and back-office functions, officials say.
The upgrade includes enhancements to trade decisioning, hedging and risk monitoring, collateral management, operations, and hedge accounting. The updated system includes “the automation of dynamic hedging of annuity contracts, providing greater transparency and operational efficiency for both traders and risk management teams,” according to the announcement.
Fusion Invest integrates automation to eliminate manual data entry and reconciliation in an effort to help annuity carriers reduce errors and boost efficiency “in tracking collateral positions, valuations, and movements,” officials add. “The solution ensures compliance with the latest derivatives processing regulations, such as Swift ISO 20022, and enhances collateral management workflow efficiency to drive operational costs down.”
The solution can help firms analyze real-time market data and model different scenarios to “identify opportunities to maximize returns within product boundaries, including participation rates, caps and crediting methods,” officials say.
“The current economic climate and state of the retirement nest egg has driven life and annuity carriers to develop a wider range of investment options, including registered index-linked annuities (RILAs). Since RILAs are considered both an insurance product as well as a security, carriers must comply with regulations set by both FINRA and the Securities Exchange Commission,” says Julie Barthés, vice president for the product, treasury and capital markets business unit at Finastra, in a prepared statement.
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