Challenge
The client outsources their insurance investment management function to multiple investment managers who use a leading vendor solution as their Investment Book of Record (IBOR). The client utilizes multiple systems to support their accounting book of record (ABOR). Additionally, the client maintained multiple spreadsheets to track private investment activity, securities lending, and actuarial data for their insurance policies. In total, the client had over 20 unique data sources and 50 report templates that were manually compiled on a periodic basis.
As an insurance company, the client is also subject to various regulatory filings and liquidity requirements that are audited on a periodic basis. The client started an initiative to create a central data warehouse to support their internal and external reporting needs with the goal of increasing operational efficiency and establishing better process controls.
The client initially engaged multiple prospective solution providers and ultimately selected Rivvit. Their decision was based on the rapid deployment of a flexible, working prototype and the team’s detailed knowledge of the underlying asset classes and insurance accounting concepts.
Solution
Working closely with the client, Rivvit’s managed data services team:
- Integrated all data sources and developed 50 custom report templates
- Created a centralized data hub across previously siloed systems, personnel, and data providers
- Deployed a portfolio and security master across three legal entities, 30 portfolios, and 6,000 unique securities
- Migrated 12 months of historical data including 20,000 lot-level positions and 180,000 transactions and integrated the client’s ABOR and IBOR to add new risk calculations across complex asset types
- Established a data source hierarchy to provide a single source of truth for each data source
- Automated model calculations to support stress testing and scenario analysis for key liquidity ratios
Results
- In three months, the client went “live,” improving operational efficiency and delivering significant cost savings
- Integrated 20 unique data sources and automated 50 reports
- Increased reporting frequency for reports that were previously too time consuming to produce monthly
- Eliminated the need for 3rd party compliance calculation agent, saving $100,000 annually
- Tripled the number of accurate and available data fields to allow for future reporting enhancements