Description
One of the key places to start an analysis is to examine
the capabilities of a firm’s IT systems. Some of the common errors SS&C has observed with how firms utilize software investments include:
• Failing to upgrade systems on a regular basis and, as a
result, not taking advantage of new product features
• Upgrading software but continuing to follow old processes, thereby ignoring new features
• Not using product features as intended, which is often easily corrected through training
• Not raising operational pain points with vendors,
many of which can be easily resolved
• Failing to implement new software features due to
upstream or downstream IT complexity
• Not staying current on new technology solutions to
support your specific needs
• Failing to recognize opportunities to outsource portions of your IT and related operations
Today’s technology has greatly enhanced the ability to
outsource not only entire operations, but also select pain
points.
Once a thorough analysis has been completed and opportunities for improvement have been identified, it is important to map the execution plan clearly. The biggest mistake SS&C observes in implementing changes is when firms
try to implement all their improvements at once. This can
be frustrating, destabilizing, slow, and costly.
Instead, SS&C recommends creating an execution plan that achieves incremental improvements in an iterative process. By taking a thoughtful and planned approach, staff won’t be overly burdened, and companies will be able to make adaptations to meet their evolving business requirements. As a result, operations teams will achieve repeated successes. Once a firm’s operations and infrastructure have been fully optimized, we strongly recommend that companies establish comprehensive training programs to ensure that the system remains efficient and controlled.
Whether it is learning new system capabilities, studying regulatory changes and their impact on operations, or re-examining workflows, training employees will prevent firms from falling behind market requirements. If all of the above is done well, firms should be able to observe meaningful changes in their operations. Below are a few of the improvements that SS&C’s insurance clients have realized by following these best practices: • Efficiency, typically measured as output at different stages of a process, but also measured by a reduction in cost drivers tied to operations • Innovation, defined by operations teams as the ability for operations to support business innovation, such as entering new markets, investing in new asset classes, etc. • Control, often measured as a firm’s ability to meet pre-defined internal controls and to reduce operational risks • Compliance, assessed through increased transparency into operations, the ability to convert transparency into information (often through reporting), and overall compliance results • Client service, observed by determining where operations interact with clients and determining metrics for success (for example, the ability to provide data to clients in a timely manner) Lastly, growth and change in insurance markets is creating new opportunities for firms with flexible and robust operations to compete more effectively. Now is the time for companies to study their operations and infrastructure, and determine whether they are adequately prepared for today’s marketplace.
By working with industry experts and following best practices for improving operations, insurance firms can make significant operational improvements in a cost-effective manner that provide real, measurable business results. Tim Reilly joined SS&C in June 2013 and serves as SVP of Institutional and Investment Management. Prior to joining SS&C, he held senior financial roles at PwC for almost 28 years across local, regional and national markets, most recently serving as market leader in its Hartford office. Reilly also has extensive financial management experience with various clients organizations ranging from Fortune 500 companies to smaller entrepreneurial organizations.
He is a graduate of Clarkson University and Certified Public Accountant. Visit us for more information at www.ssctech.com. Posted with permission from Insurance & Technology. Copyright 2014. For more information on the use of this content, contact Wright’s Media at 877-652-5295. 113218 .
Instead, SS&C recommends creating an execution plan that achieves incremental improvements in an iterative process. By taking a thoughtful and planned approach, staff won’t be overly burdened, and companies will be able to make adaptations to meet their evolving business requirements. As a result, operations teams will achieve repeated successes. Once a firm’s operations and infrastructure have been fully optimized, we strongly recommend that companies establish comprehensive training programs to ensure that the system remains efficient and controlled.
Whether it is learning new system capabilities, studying regulatory changes and their impact on operations, or re-examining workflows, training employees will prevent firms from falling behind market requirements. If all of the above is done well, firms should be able to observe meaningful changes in their operations. Below are a few of the improvements that SS&C’s insurance clients have realized by following these best practices: • Efficiency, typically measured as output at different stages of a process, but also measured by a reduction in cost drivers tied to operations • Innovation, defined by operations teams as the ability for operations to support business innovation, such as entering new markets, investing in new asset classes, etc. • Control, often measured as a firm’s ability to meet pre-defined internal controls and to reduce operational risks • Compliance, assessed through increased transparency into operations, the ability to convert transparency into information (often through reporting), and overall compliance results • Client service, observed by determining where operations interact with clients and determining metrics for success (for example, the ability to provide data to clients in a timely manner) Lastly, growth and change in insurance markets is creating new opportunities for firms with flexible and robust operations to compete more effectively. Now is the time for companies to study their operations and infrastructure, and determine whether they are adequately prepared for today’s marketplace.
By working with industry experts and following best practices for improving operations, insurance firms can make significant operational improvements in a cost-effective manner that provide real, measurable business results. Tim Reilly joined SS&C in June 2013 and serves as SVP of Institutional and Investment Management. Prior to joining SS&C, he held senior financial roles at PwC for almost 28 years across local, regional and national markets, most recently serving as market leader in its Hartford office. Reilly also has extensive financial management experience with various clients organizations ranging from Fortune 500 companies to smaller entrepreneurial organizations.
He is a graduate of Clarkson University and Certified Public Accountant. Visit us for more information at www.ssctech.com. Posted with permission from Insurance & Technology. Copyright 2014. For more information on the use of this content, contact Wright’s Media at 877-652-5295. 113218 .
