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Completing the regulatory marathon with the help of modern IT systems

Whether at European or national level, much legislation has been passed in recent years imposing new regulatory burdens on the insurance industry:

  • following extensive changes to implement the German Life Insurance Reform Act (Lebensversicherungsreformgesetzes – LVRG), insurance companies had another steep hill to climb at the beginning of 2016 with the introduction of Solvency II.
  • The Insurance Distribution Directive (IDD) came into effect at the end of February 2016. The directive has to be transposed into national law by the end of February 2018.
  • And finally: extensive changes are also planned to accounting standards. The International Accounting Standards Board (IASB) is currently revising the International Financial Reporting Standard relevant to the insurance industry, IFRS 4, and companies will not have much time to comply with the new regulations.

The list goes on, with the planned multilateral OECD agreement on the automatic exchange of tax information, the German law on the automatic exchange of information about financial accounts in tax matters and the US Foreign Account Tax Compliance Act, known as FATCA.

High costs without any competitive advantage

Whatever the new rules are called, the bottom line is that insurance companies have to be more transparent, comply with complex new rules and implement expensive regulatory requirements without deriving any competitive benefits from doing so. All this poses great functional and technical challenges for the industry, which is going through a difficult period in any case. Implementing these obligations requires extensive adjustments to IT systems and business processes. Furthermore, some insurers are using outdated IT systems that can only be expanded to include the new functionalities required by law requiring a great amount of time and at great expense. All this puts massive pressure on earnings and so on the efficiency and competitiveness of companies.

High-performance standard software is indispensable for implementation

Many companies are faced with the question: how can we implement this wave of new regulations on time and with legal certainty, but effectively and cost-consciously at the same time? It is only feasible with high-performance and state-of-the-art IT solutions. The deployment of upgradeable standard software that can be easily integrated is an enormous relief, because this shifts most of the tasks created by implementing new regulatory demands onto the software provider. And here there are significant cost benefits compared with an in-house development. The development, timing and liability risks associated with an internal development also do not apply. So insurance companies finally get the room for manoeuvre they need to concentrate on generating competitive advantages in the market.

As a leading provider of software and advisory services for the European insurance industry, msg life offers a range of standard solutions for life insurance companies and providers of private pension schemes. The upgradeable software products are continuously developed in cooperation with customers. And of course the timely and complete implementation of regulatory requirements has top priority. The solutions from msg life are highly automated and highly efficient. They can be deployed flexibly and can be integrated smoothly into existing IT environments thanks to numerous interfaces. The software solutions have already proved their worth in practice and are in operation at many well-known companies.

The solutions from msg life

  • msg.Life Factory
    Upgradeable, state-of-the-art policy management system that covers all relevant business processes in a life insurer’s core business and combines them with extensive product development options.
  • msg.RAN (pension settlement and documentation system)
    Upgradeable standard solution that manages and records all business processes related to the management, payment and documentation of private and company pensions and other benefits. All the statutory documentation is sent on time and automatically to the competent authorities. The system also takes care of communications with the ZfA and the health insurance companies.
  • msg.Zulagenverwaltung
    Upgradeable standard software that enables the transparent and largely automated processing of state subsidies for Riester contracts. The system manages the individual workflows from the application to the payment of subsidies. The system also takes care of all communications between the provider of the Riester contract, the ZfA and the beneficiaries of the subsidies.
  • msg.Tax Connect
    Upgradeable standard software for the electronic transmission of contribution data to the ZfA, the implementation of the KiStAM procedure and the implementation of CRS requirements.

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Our solutions

Policy administration systems for life insurers msg.Life Factory

Pension settlement and documentation system msg.Ran

Tax reporting processes msg.Tax Connect

Subsidy management msg.Zulagenverwaltung