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In today’s insurance landscape, insurers expect far more from their asset managers than just solid investment returns. As regulatory scrutiny intensifies and portfolio complexity grows, insurers are increasingly demanding deeper operational, analytical and compliance support. For asset managers, this shift represents both a challenge and an opportunity to build stronger, value-added relationships with insurance clients.

Beyond Performance: Meeting Expanding Expectations

Gone are the days when outperformance alone secured mandates from insurance clients. Modern insurers require a suite of specialized services, including:

• Regulatory Compliance & Reporting: Full support for NAIC statutory reporting and alignment with RBC (Risk-Based Capital) requirements.
• Custom Analytics & Data Feeds: Daily delivery of statutory book values, yields and risk analytics tailored to insurer portfolios.
• Integrated Accounting & Valuation: Cross-basis investment accounting and valuation policies that reflect both GAAP and statutory frameworks.

Delivering on these expectations means having the operational infrastructure to align investment data with insurance-specific reporting and compliance needs.

Key Challenges Faced by Asset Managers

To meet these evolving demands, asset managers must overcome significant operational hurdles:

• Disparate Data Sources: Aligning investment book of record (IBOR) data with statutory accounting views can be complex, especially when multiple systems are involved.
• Manual Reconciliation: Repetitive and manual reconciliation of data for NAIC compliance leads to inefficiency and risk.
• RBC Complexity: Determining accurate risk-based capital treatment for each position requires real-time access to ratings, designations and look-through data.

High-Value Opportunities for Asset Managers

Asset managers who build platforms to support insurance-specific needs gain a competitive edge. Here are three core capabilities insurers now expect:

• Regulatory & RBC Alignment
  Insurers expect asset managers to provide NAIC-aligned ratings and designations, tailored valuation for private assets and projections for income and cash flow.
• Customized Reporting
  Insurers demand real-time access to statutory book values and yields, public and private investment analytics, and online customizable portfolio dashboards.
• Tailored Expertise
  Winning managers offer multi-basis investment accounting, NAIC statement preparation and filing assistance, and fully outsourced reporting solutions.

The Solution: A Modern Operational Platform

To meet these demands, asset managers are turning to integrated platforms like ÌìÃÀ´«Ã½â€™s Singularity to streamline accounting and compliance, enrich data and enhance client service.

ÌìÃÀ´«Ã½ Singularity Architecture for Insurance-Focused Asset Managers

ÌìÃÀ´«Ã½â€™s platform offers a range of features. Daily position and income data can be imported from the asset manager’s IBOR/OMS. The platform then automatically calculates STAT book values, yields, impairments and RBC. Real-time analytics at both security and portfolio levels are also calculated and passed back to the asset manager’s IBOR/OMS for better alignment with their insurance clients’ investment policies and strategic asset allocation requirements. Lastly, Singularity provides custom exports for downstream insurer systems, as well as NAIC quarterly and annual regulatory filing schedules and packages.

Advanced Risk & Performance Analytics

With ÌìÃÀ´«Ã½â€™s advanced risk analytics, asset managers can also:

• Run what-if, stress test and scenario analysis.
• Calculate exposures like duration, convexity and PVO1.
• Model historical and forward-looking portfolio impacts.

These capabilities empower asset managers to become true risk partners to their insurance clients—not just investment providers.

Final Thoughts

Insurers now evaluate asset managers not only on their ability to generate returns, but also on their ability to support the entire operational lifecycle of insurance asset management. From regulatory compliance and risk analytics to valuation alignment and data automation, expectations have grown.

Asset managers who invest in integrated platforms and insurance-specific expertise will not only deepen existing relationships, but also win new mandates in an increasingly competitive market.

Interested in learning more about how operational platforms like ÌìÃÀ´«Ã½ Singularity are reshaping the asset management landscape for insurers? Contact us to explore how your firm can elevate its insurance offering.