According to Study, Technology Platform Proves
Pivotal in Managing and Optimizing Liquidity Portfolios
BOISE,
Idaho, Nov. 14, 2023 /PRNewswire/
-- Clearwater Analytics (NYSE: CWAN), a leading provider of
SaaS-based investment management, accounting, reporting, and
analytics solutions, today announced its 2023 Insurer Cash and
Short-Term Investment Management Market Outlook study. The survey
conducted in September 2023 engaged
over 120 insurers and represented $2
trillion in assets underlining the most substantial trends
in insurer cash and short-term investment management.
"Today's economic uncertainty and complexities are leading
insurers to rethink their investment strategy. The study marks an
increased focus on short-term assets, driven by higher rates and an
inverted yield curve," said Scott
Erickson, Chief Revenue Officer at Clearwater Analytics.
"The key takeaway is the integral role technology can play in
managing and optimizing liquidity portfolios, and robust solutions
like Clearwater's can streamline
operational processes."
Key highlights from Clearwater's report include the following
findings:
- With increasing rates, insurers are waving goodbye to the era
where short-term holdings were a drag on investment income. The
shaky economic outlook is propelling insurers to stash cash into
high-quality short-term investments.
- Insurers are increasingly leveraging technology and liquidity
"supermarket" platforms, enabling them to efficiently manage and
oversee their money market fund portfolios. Integrations with
powerful solutions like Clearwater's investment accounting and
analytics platform further streamline the process.
- Despite the volatile environment, a surprising two-thirds of
insurers maintain a "highly" or "moderately" passive approach,
holding primarily cash or custodial sweep vehicles.
- The poll uncovered that 52% of respondents consider the massive
flows into short-term investments as a passing trend, assuming
future normalization of yield curve and recession fears.
- The impact of recent upheavals in the banking sector has led to
around 40% of insurers adjusting their custody partners. However, a
significant 43% report no change.
- Over 50% of insurers reported using Treasury Management Systems
for treasury functions, with a strong desire for improved tools for
cash management and bank account management.
Download the 2023 Insurer Cash and Short-Term Investment
Management Market Outlook study for the full insights. Results from
this and all Clearwater flash
polls in our Resource Center can be found at
clearwateranalytics.com/resources/.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading
SaaS solution, automates the entire investment lifecycle. With a
single instance, multi-tenant architecture, Clearwater offers award-winning investment
portfolio planning, performance reporting, data aggregation,
reconciliation, accounting, compliance, risk, and order management.
Each day, leading insurers, asset managers, corporations, and
governments use Clearwater's
trusted data to drive efficient, scalable investing on more than
$6.4 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found
at clearwateranalytics.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/clearwater-analytics-study-shows-insurer-investor-shift-301986591.html
SOURCE Clearwater Analytics