This text is based on Evitec Life Savings’ (ELS) Finnish blog article.
Finns’ interest in saving and investing has grown steadily throughout the 2000s. As interest has grown, so has the number of available investment options. The popularity of the equity savings account in Finland shows that the Finns are ready to consider also other investment options than traditional funds and savings accounts. The Insurance Year 2021 report (in Finnish) by Finance Finland, the interest organisation of the financial sector in Finland, reveals a considerable increase in the popularity of capitalisation contracts. It seems that in the current market situation, the stock and interest market offers too limited tools, so there is an apparent demand for alternative investment targets.
Cumbersome management of the contract portfolio can be an obstacle to growth
Many life insurance companies are offering individual investment insurance for large investors. In these, the investment instruments are not very limited, so, in principle, they can be anything the insurance company accepts. In addition, the customer can choose the management model that suits them best based on how closely they want to participate in investment management.
Since large investors are a relatively limited target group and the investment portfolios of individual investment insurances are diverse, managing these contracts has traditionally been laborious. Over time, the number of contracts may have increased so much that the current management model has no longer been sustainable. Furthermore, if the administration were more straightforward and cost-effective, could the minimum investment amount be lowered and the target group offered individual investment insurance expanded?
Furthermore, if the administration were more straightforward and cost-effective, could the minimum investment amount be lowered and the target group offered individual investment insurance expanded?
Efficient investment management with a cloud-based portfolio management system
Evitec Life Savings (ELS) supports the management of interest-, fund- and unit-linked savings and capitalisation contracts. Now Evitec is expanding the functionality to efficiently manage individual investment portfolios, allowing the insurance company to offer a wide range of investment instruments for savings contracts.
Individual investment insurance contracts are managed in Evitec Life Savings, with a focus on automation and the efficiency of daily operations. Policy administration takes care of the policy life-cycle management and the business needs of the entire contract base, covering sales, management phase and claims processing. The comprehensive digital service interfaces of the Evitec Life solution enable a high degree of automation of daily operations and smooth customer service.
The investment portfolio of individual investment insurance is managed in FA Solutions’ cloud-based portfolio management solution, the FA Platform, which automates and centralises a large number of operational processes in one system. The FA Platform enables portfolio management and trading in different currencies in public and private markets, also covering analytics and reporting. FA Solutions offers API interfaces based on an open architecture, making integrating the system into existing web services easy.
“The solution jointly developed by FA Solutions and Evitec, automating laborious manual work steps, enables life insurers to re-evaluate the pricing model for individual investment insurances, giving a significant competitive advantage and the opportunity to expand their service offering to an even wider audience. Finland’s individual investment insurance market is a compelling destination for the growing wealth of Finns, and our joint solution can greatly help insurers to accelerate it.”Jani Boström, VP Product Management at Evitec
Evitec is a Nordic expert in software solutions and consultation services for the financial sector. Evitec Life is an insurance policy management system developed by Evitec, with over 30 years of experience. Evitec Life covers the life insurers’ whole product range, including savings, pension, and life risk insurances.
FA Solutions is a market-leading software provider for Asset & Wealth Managers, helping them manage their investments globally. We offer a cloud-based Portfolio Management solution that automates and centralises a wide range of operational processes into one easy-to-use FA Platform. We believe superior technology enables quality Asset & Wealth Management services for everyone.