Cloud-Based Tool Enables Insurer to Meet Challenges of March 1 Regulatory Deadline
RSA Insurance Group plc, a leading multinational insurer, has deployed the multi-award winning CloudMargin platform for its over-the-counter (OTC) derivatives and Repo portfolios. CloudMargin is the world’s first cloud-based, end-to-end collateral and margin management tool.
Dan Ferguson, Group Treasurer of RSA Group, said: “This innovative tool is a great fit for RSA as we have a variety of instruments we need to collateralise on a daily basis. It is helping us address the significant operational challenges we will face from impending regulations effective March 1 for users of non-cleared derivatives. RSA’s infrastructure for managing derivatives must keep pace with our strategic and operational objectives as well as changes in the regulatory environment. As a result of implementing CloudMargin, RSA has been able to automate the derivative and collateral management work flow, saving valuable resources, enhancing controls and protecting the business against changes in the regulatory landscape.”
It took less than two weeks to get RSA Insurance Group onboarded and fully functioning on the platform.
The Software-as-a-Service (SaaS) based technology behind CloudMargin allows firms to automate and optimise their collateral management processes at a fraction of the cost of other solutions available in the marketplace. CloudMargin also supports regulatory compliance through enhancements which deliver automated reconciliation and reporting solutions via approved vendors.
Steve Husk, CEO of CloudMargin, said: “Insurers, which have long used derivatives to hedge their risks, are experiencing the same pressures to cut costs and create efficiencies as other financial institutions. CloudMargin’s ability to aggregate data, automate margin calls and streamline communication is ideal for forward-thinking insurance companies like RSA Insurance Group that demand best-in-class solutions to support compliance and efficiency requirements.”
He added: “RSA’s strategic step of onboarding CloudMargin means it has laid a foundation for the future. Those insurers who move more quickly to embrace the cloud will gain a competitive advantage that others may struggle to match, especially as firms look to operate within the new regulatory landscape.”
CloudMargin is built to handle complex collateral requirements with multiple counterparties. The platform also provides automated connectivity to global custodians, banks, clearing brokers and clearing houses in order to manage collateral across all asset types and instruments.
With a 300 year heritage, RSA is a multinational quoted insurance group. Focusing on general insurance, RSA’s core markets are the UK & Ireland, Scandinavia and Canada, with the capability to write insurance business in over 100 countries. RSA’s core businesses have around 13,500 employees with net written premiums of £6.3bn in 2016.
Headquartered in London, CloudMargin created the world’s first cloud-based collateral management workflow tool, which has earned eight different industry awards since 2015 for innovation and best-in-class technology. The firm’s Software-as-a-Service (SaaS) model is helping many of the leading financial institutions globally – including exchanges, brokerage firms, banks, asset management firms and insurance companies – meet time-critical regulatory deadlines and reduce costs associated with collateral requirements that are growing dramatically. CloudMargin bypasses many of the shortfalls of legacy, on-premise software, enabling clients to experience rapid implementation and access to robust and secure collateral management workflow software.