November 15, 2004
The Indian Insurance industry has been witness to a large number of changes in the recent past. The entry of private and foreign players has drastically altered the face of the insurance industry and the market dynamics. The market for insurance products has become increasingly demanding and there is a conscious need to offer a variety of products to suit all kinds of needs.
This has resulted in the increase in the number of funds under management of these firms. The regulatory authority, IRDA, has been keeping a strict vigil on the players in the sector to ensure that the insurers have financial soundness and viability.
The players have found it very important to strictly monitor the investments portfolio, given the volatility in the financial markets, to ensure safety of investments and returns.
Formerly, the insurance companies did not feel the need for any formal integrated investments management solutions. A few companies were using either an independent front office solution or a valuation tool but not a completely integrated investments management solution. With the increase in size of portfolios, rigid IRDA reporting norms and the launch of complex products (e.g. ULIPs), a few firms have decided to have a single solution to manage the entire investment management activities. An insurance company would expect such an integrated solution to address the functionalities including investment modeling, investment mandate management, tracking of exposures, risk and investment restrictions, transaction life-cycle management, portfolio allocations, funds tracking, stock management, income & redemption management, valuation, amortisation and accretion, investment accounting, NAV computation, IRDA reporting, etc.
Credence Analytics is India's leading treasury solutions provider to the banking sector. Their flagship product, iDEAL for investments management, was reconfigured to address the complete requirements of the insurance sector. Currently, Credence has four insurance clients across the private and public sector for the insurance industry version of iDEAL. This makes iDEAL the leading investment management solution in the insurance sector as well. iDEAL for insurance is thus a one stop solution for the investments management department of an insurance company.
"Credence iDEAL is among the first tailor-made products to suit the complete investment management requirements of an insurance company from the industry, regulatory and internal requirements perspective. iDEAL can be therefore termed as a credible, compliant, comprehensive and a configurable solution for investment management in insurance companies. We are in talks with a few more insurance firms and we see our product installed at most leading insurance firms before the end of the financial year 04-05.' says Mr. C.K Guruprasad, the marketing director at Credence Analytics.