Insurance management and reinsurance transform organisation, Nascent Group, has unveiled a new collateral monitoring feature to facilitate smoother and more transparent insurance-linked-securities (ILS) transactions to the benefit of fund managers and investors in the space.
The company explained that the implementation of this new feature is aimed at “supporting the health and growth of the ILS sector.”
It also aligns with the company’s mission of being a tech-driven service provider.
From what we understand, the collateral management feature is a new addition to the firm’s proprietary policy management platform – RUDDR, and it has been designed to address collateral transparency issues.
Nascent explained that it is tackling this issue by integrating trustee banks’ APIs into RUDDR.
The firm also noted that by leveraging live data to automate a variety of insurance management processes, and combining trustee banks’ API capabilities with RUDDR, it enables automatic tracking of premium payments, compliance checks with investment directives, monitoring of investment maturity, and accrued interest, among other functions.
Andre Perez, Chairman of Nascent Group, commented: “There is no reason why ILS investment managers and investors should remain in the dark on their investments, especially when technology allows us to provide instant clarity. Finding a solution to this is paramount for us and will continue to be a major initiative.”
Adding: “Our view is that collateral insights provided by our system are a minimum requirement for modern investors. The real advantage lies in the synergy with our policy management system, which enables us to eliminate layers of manual internal processes, providing a better and more streamlined service.”
Nascent also explained that this initiative represents the first integration of such technology with a policy management platform by an insurance manager and transformer, tapping into previously unused synergies.
Further, the company also states that it will deliver NAV Lite reports in a fraction of the time typically required, thereby significantly cutting the current timeline.
By striving for increased efficiency through innovation, Nascent also said that this development aims to facilitate “smoother and more transparent ILS transactions, benefiting both fund managers and investors.”
Lastly, while the organisation has developed the API communication protocol initially with BNY Mellon, it aims to expand this API integration with other trustee banks in the near future too.
