Posted on 02 May 2022

Tailored Arrangements for Insurance Companies Create Complexity


With insurers forming more separately managed account arrangements with mid-market managers, fund administrators are dealing with greater data complexity than ever. It doesn’t help that insurance companies, fund managers, and investors all have different systems that aren’t in sync, making data collection, sharing, and reporting even more difficult. Add in the fact that insurers are starting direct lending platforms and originating their own transactions, and data management can become overwhelming.

In an Expert Q&A in PDI, Group Sector Head, Debt & Capital Markets Greg Myers and Laurent Fudvoye, Director, take on this multifaceted topic.

“Insurance companies don’t want their SMAs to be in a co-mingled fund, but they do want to aggregate all of their portfolio level and performance data into their in-house systems,” Myers says. “That poses interesting challenges on a number of fronts, from a conformity perspective to feeding data at the appropriate frequency.”

Fudvoye sees another factor making reporting even thornier: An increasing volume of data is non-financial, pertaining to ESG. “When direct lending players invest in SMAs that don’t track ESG elements in a routine way, it makes data collection and reporting more difficult,” Fudvoye says.

Proper monitoring and interaction are possible. For more insight, download the full article below.