Investment data management solutions company MoneyMate has launched the Fund Price and Information Exchange, a ‘look-through’ and reporting utility, to help insurers and asset managers tackle Solvency II requirements.
MoneyMate’s exchange is a result of the need for insurance companies to prove that they have enough capital funding to prevent them from failing. Solvency II requires insurers to develop 'look-through’ transparency over their investments, placing pressure on asset managers that will be required to provide levels of transparency on the investments of their insurance company clients.
Like other members of the insurance industry, captive insurers also have concerns about the level of capital that will be required under Solvency II.
In an email interview, John Dowdall, global business development, at MoneyMate, said: “Of particular concern [to captive insurers] is the ability to access the required level of granular data from their asset managers with whom they invest. Access to this data for funds is not currently available in the timeframes required and sourcing such data can be problematic as asset managers feel that releasing this IP & investment strategy to their investor is of great concern."
“For captives with large investments in the funds area, there will also be a requirement to source data from tens if not hundreds of asset managers in different formats and integrate each into their systems.”
The exchange creates connectivity between captive insurers and their asset managers to enable better compliance with Solvency II by providing access to holdings data in a controlled environment.
“This environment is designed to provide the security that will allow them to make the policy decision to provide the required transparency captives want in order to seek the lowest possible solvency capital requirement,” added Dowdall.
MoneyMate's chief technology officer, Ronan Brennan, said: “Our look-through and reporting utility provides an industry-connected infrastructure and tackles the fundamental challenges for asset managers, third party administrators and their insurance clients under Solvency II: data ownership, opaque investment structures and security for intellectual property,”
“The utility provides connectivity between parties involved in addressing the issues of Solvency II—the regulated investor, their asset manager and their service providers. A landscape-altering regulatory move like this requires a completely new model, and that’s what we’ve done at MoneyMate.”
