Transformation for the insurance industry

The five mission critical challenges driving insurance firms to transform

The insurance industry is at an inflection point. The responsibility of managing liabilities and capital requirements, combined with a challenging external environment, is driving the need for insurers to transform.

Your operating landscape has changed significantly in the past years. Partly driven by a continuous low-yield environment, a tsunami of regulations and new accounting frameworks, but also by evolving client investment preferences (ESG), increased competition, the emergence of new technologies, and continued M&A activity. This environment has created a situation where the current operating model is often too complex, or even inefficient. Simply maintaining the status quo is no longer an option.

SimCorp is a trusted partner for insurance firms who want to transform their operating model and technology infrastructure. Whether you're a global firm operating across multiple regions and jurisdictions, or a regional specialist organization, our blend of software, services and expertise will empower you to tackle these five critical challenges.





A continued low-yield environment has put pressure on investment teams within insurance firms. Returns from traditional fixed-income investments are no longer matching the long-term obligations needed to safeguard the interests of your clients across life, annuities, and retirement planning business lines.

This has driven a move towards more diversification, both in terms of new asset classes like alternative investments, but also in terms of geographical allocation.

Furthermore the pressure on yields and solvency ratios has led to a shift away from guaranteed rate products towards unit-linked products.

These developments have brought several significant challenges. They have created more scrutiny on the cost of capital, the management of assets and liabilities and data quality. In turn, they have put pressure on the operating models, people, processes, and the technology which underpins business.


Why partner with SimCorp

SimCorp can enable insurance firms to easily diversify asset allocation through the provision of a single, integrated platform to handle all aspects of a multi-asset strategy, including alternatives. Therefore Portfolio Managers can focus on generating alpha and not spend valuable time on reconciling data and positions from disparate systems, or separately handling the various operational complexities of each asset class.

Ibor 3D


If you're looking to balance your obligations by diversifying to alternatives, then you know they can be more operationally challenging. In this white paper, you'll learn how to tackle these operational challenges, efficiently and cost-effectively.

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A tsunami of regulatory initiatives and new accounting frameworks has put pressure on insurance firms. In just the past seven years, we’ve seen the introduction of Solvency II, IFRS 9 and 17, EMIR, SFTR, the phasing out of LIBOR.

To address the regulatory challenges, insurance companies must be able to better control risk and capital requirements. Each new piece of legislation requires time, resources, significant cost and often spans numerous areas of your business, which all use their own technology, processes, and data sources. As a result, firms often take a piecemeal approach to solving the problem, instead of holistic, and then have to spend valuable time on reconciliations between different systems.

Why partner with SimCorp

With offices in over 20 countries, we understand each geographical region and its specific regulatory constraints. Our clients have a range of regulatory services at their disposal, including up-to-date solution functionalities that address a multitude of requirements. We can help you turn regulatory compliance into a competitive advantage.

Trends in insurance asset management


In a recent roundtable hosted by Option Finance, experts from leading insurance firms shared their views on the industry in the face of increased regulations.

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To lower the cost of doing business, insurance firms like yours are looking to scale efficiently and cost-effectively.

To access new markets and customer bases, achieve cost synergies, and gain specialist expertise not available in-house, many insurance firms are looking to expand. In the news recently, larger firms have looked towards M&A activity, including acquisitions or partnerships with alternative, private asset, or multi-asset boutiques to achieve this growth and scale.

These approaches create new challenges, including the costly and inefficient duplication of tasks. Different regions have their own distinct accounting frameworks, their own technology, teams and processes. Additionally, it can create complexities when pulling together a consolidated view of data, which is required in a fast-moving market to perform other requisite tasks.  

If you’re on a growth journey, you’ll need to have a good view on how capital requirements will evolve and also the opportunities from investment forecasting functionalities, which only a single, integrated platform can deliver.


Why partner with SimCorp

SimCorp offers a consolidated and integrated platform for growth for insurers. A consistent set of workflows, business tools and single view of data, helps you increase operational efficiency and reduce risks when expanding into different geographies, or diversifying your business.


As a fast growing global asset manager, Aegon Asset Management identified that their investment management infrastructure was simply not capable of supporting the company’s growth ambitions. Learn how they turned to SimCorp Dimension to address their challenges with manual processes and positioned the business to pursue new growth strategies, while reducing operating costs, and mitigating operational risk.

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Insurers are now under pressure to deliver more transparent and real-time information to both clients and regulators. Digitization is a key component to deliver on these expectations.

To achieve this, the fundamental basics need to be addressed. Automating manual, repetitive tasks, standardizing investment processes, consolidating data sources, and removing legacy technologies are crucial steps to take.

As you shift into unit-linked funds you'll compete more with traditional asset managers – who are facing fee pressure and increased demands from clients. The ability to provide better client experiences through digital channels will be key in the battle to differentiate.


Why partner with SimCorp

SimCorp helps you streamline and automate operational processes and consolidate all asset classes onto a single front-to-back platform, so you can embrace innovative digital solutions.


Explore how you can apply standardization to increase competitive advantage and profitability, and also lay the foundation for new, disruptive technologies.

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Mirroring the rest of the buy-side community, insurers are required to handle increasing volumes of data. Traditionally, this has been handled in spreadsheets and multiple disparate systems that do not allow information to flow easily across the whole organization.

Yet, data volumes will only increase. Market trends such as ESG, will require the integration of additional data sets in the investment and risk management process and create more challenges for the aggregation, analysis and reporting of data to clients, prospective clients and regulators.


Why partner with SimCorp

SimCorp supports the end-to-end workflow of data management – from financial data management software, hosted and managed data services through to data analytics modules and a reporting platform.


CNP Assurances was facing increasing data management and reporting demands as the company expanded its business. Read about their journey to meet these demands with a more centralized and efficient solution.

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A strategic and trusted transformation partner to the insurance industry