The 2024 InvestOps report revealed that the buy side’s top strategies for growing and maintaining AUM in the short term is both focusing on core activities by outsourcing standardized tasks (60%) and innovation in emerging tech (60%). 

Outsourcing as we know it, where we take an existing task and lift and shift it to an external provider, is riddled with its own challenges.

However, a new option emerges with the introduction of Business Process as a Service (BPaaS). Here services are offered on top of your core technology platform, enabling you to benefit from complete transparency, keep control of your technology and data and benefit from a scalable operating model. Insurance firms are looking to this option for labor intensive yet critical tasks, such as investment accounting and reporting. 

Here are the four essentials to consider if you’re evaluating a managed service partner for investment accounting and reporting.

In conclusion, embracing a true managed services for investment accounting and reporting in the insurance industry presents a strategic opportunity. However, careful consideration of regional complexities, financial instrument coverage, control mechanisms, and the track record of the tech partner is essential for a successful implementation that aligns with your organization's long-term goals.