Refining your search for an insurance custodian

October 12, 2021

When looking for a partner in a specialized industry, you should consider both their functional capabilities and the customer service experience you'll receive.

Choosing a new service provider can be overwhelming, especially when you’re in a highly regulated industry like insurance. To make sure you’re partnering with a firm that understands the intricacies of the industry and is able to streamline your operations should be your overall objective.

 

Functional capabilities

Core technology platforms and system interfaces will undoubtedly play a role in your decision process. While the bells and whistles of technology platforms are exciting, keep in mind that the security, speed and accuracy of processing your transaction requests should be the number one priority for your custodian. Do you need your custodian to be able to process multiple security types globally or support straight-through processing? Ensure your custodian has the key technology features needed to meet your specific processing requirements.

Your custodian should also be flexible and willing to customize reporting as well as interfaces and feeds to analytics systems. The ability and willingness to work with third-party systems, especially related to regulatory reporting, to establish data integration will be important for your ongoing success.

Additionally, and perhaps the most undervalued functional capability of specialized insurance custodians is the breadth of their statutory deposits capabilities. How expansive is the custodian’s statutory network? Do they have positive relationships with the state departments of insurance? Is there an opportunity for you to consolidate statutory reporting and reduce costs?

 

Commitment to customer service

Once you’ve narrowed down your list of potential custodians to those that will functionally be able to service your business, you’ll want to make sure your customer service expectations are well defined and met. In a complex industry, having a simplified customer service experience with a single point of contact will help ease your operational burden.

Look beyond the technology and reporting to the people and the processes behind them. Who will be partnering with you? Do they have the experience and the specialized industry expertise to be a partner? Are they willing to dig in and understand your business both legally and operationally?

Your custodian should take time to understand your organizational structure and priorities. Once they understand how you run your business, they’ll be able to proactively help you manage your investment risks and adapt to changing regulations. They’ll also be able to streamline your account opening process, providing efficiencies as you make the acquisitions necessary to grow your business.

Your needs will certainly change as your business grows. Partnering with an established financial institution can provide simplified access to value-added services such as securities lending, liquidity management and diversity, and banking support, while maintaining a simplified customer service experience.

At the end of the day, your due diligence in choosing a specialized insurance custodian will help you spend less time managing your service partner and more time growing your business.

 

For information on custody products offered at U.S. Bank, visit usbank.com/itc.

Related content

What is CSDR, and how will you be affected?

Evaluating interest rate risk creating risk management strategy

Employee benefit plan management: trustee vs. custodian

Webinar: CRE technology trends

Avoiding the pitfalls of warehouse lending

Real world advice: How parents are teaching their kids about money

Helpful tips for safe and smart charitable giving

Travel for less: Smart (not cheap) ways to spend less on your next trip

How to reward employees and teams who perform well

Allowance basics for parents and kids

Bank vs. brokerage custody

30-day adulting challenge: Financial wellness tasks to complete in a month

High-yield bond issuance: 5 traits lawyers should look for in a service provider

Preparing for your custodian conversion

Year-end financial checklist

Putting home ownership within reach for a diverse workforce

Administrator accountability: 5 questions to evaluate outsourcing risks

The ongoing evolution of custody: Tips for renewing your custody contract

Case study: U.S. asset manager expands to Europe

Alternative assets: Advice for advisors

The role of a custodian

Custody or safekeeping: What’s the right solution for government investments?

Easier onboarding: What to look for in an administrator

5 questions you should ask your custodian about outsourcing

Insource or outsource? 10 considerations

10 ways a global custodian can support your growth

The reciprocal benefits of a custodial partnership: A case study

The benefits of a full-service warehouse custodian

The unsung heroes of exchange-traded funds

4 questions you should ask about your custodian

Refining your search for an insurance custodian

Service provider due diligence and selection best practices

Complying with changes in fund regulations

Business risk management for owners of small companies

Evaluating interest rate risk creating risk management strategy

Webinar: CSM corporation re-thinks AP

Webinar: AP automation for commercial real estate

Addressing financial uncertainty in international business

5 winning strategies for managing liquidity in volatile times

The future of financial leadership: More strategy, fewer spreadsheets

Protecting cash balances with sweep vehicles

Choosing your M&A escrow partner

Delivering powerful results with SWIFT messaging and services

Look to your custodian in times of change

High-cost housing and down payment options in relocation

Why retail merchandise returns will be a differentiator in 2022

Middle-market direct lending: Obstacles and opportunities

How RIAs can embrace technology to enhance personal touch

Crypto + Relo: Mobility industry impacts

For today's relocating home buyers, time and money are everything

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Empowering team members

10 tips on how to run a successful family business

Business tips and advice for Black entrepreneurs

How to test new business ideas

The role of ethics in the hiring process

8 ways to increase employee engagement

How to hire employees: Employee referral vs. external hiring

Give a prepaid rewards card for employee recognition

Checklist: Increase lead generation with website optimization

Is your restaurant Google-friendly?

3 simple brand awareness tips for your business

How a small business owner is making the workplace work for women

The growing importance of a strong corporate culture

Business credit card 101

Meet your business credit card support team

How to apply for a business credit card

How jumbo loans can help home buyers and your builder business

Break free from cash flow management constraints

5 tips for managing your business cash flow

Improve online presence your business

How Shampoo’ed is transforming hair and inspiring entrepreneurs

The San Francisco bridal shop that’s been making memories for 30 years

How Al’s Breakfast is bringing people together

In a digital world, Liberty Puzzles embraces true connection

Celebrity Cake Studio’s two decades of growth and success

How a travel clothing retailer is staying true to its brand values

How to build a content team

Use this one simple email marketing tip to increase your reach

How (and why) to get your business supplier diversity certification

Tips to overcome three common savings hurdles

5 tips to use your credit card wisely and steer clear of debt

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

How to increase your savings

5 tips to use your credit card wisely and steer clear of debt

How to spot a credit repair scam

5 unique ways to take your credit card benefits further

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.