Insurance 2017: A Journey Toward Self-Disruption

Insurers are aware that they may need to change their business models, but are current initiatives sufficiently grounded? Onno Bloemers, Delta Capita Insurance Lead, suggests more of ‘the right stuff’ might be required in order to overcome innovation obstacles.

Last year, an EIOPA stress test revealed that a large portion of European insurers remain vulnerable for one or both of the tested scenarios. At the same time, insurers continue to struggle with a constant shift in customer expectations. We are all used to seamlessly working digitally in more and more aspects of our lives, and we’ve come to expect the same treatment when it comes to insurance.

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Delta Capita appointed as managed service provider to Credit Suisse EMEA Structured Products business

Delta Capita, the managed services provider and international business and technology consulting firm, has been appointed by Credit Suisse, one of the leading European issuers of structured products and structured product solutions, as service provider for issuance and product governance of its structured products business across EMEA.

Delta Capita will transfer over a number of the existing Credit Suisse team as part of the appointment, increasing capabilities and accelerating the growth of its structured product issuance and governance managed service offering.

“We have seen real commitment across the structured products industry to improve product governance standards and the quality of products for end clients,” said Larry Fletcher, head of Credit Suisse’ Solutions business in EMEA. “New regulation will standardise the way in which products are packaged and delivered which provides an opportunity for the industry to work together to improve standards whilst lowering costs for end customers. We expect Delta Capita to be a leading player in delivering these improvements.”

The announcement follows Delta Caita’s appointment as managed service provider to the Plato partnership in September 2016 and appointment earlier this year to a consortium of banks responding to the regulation on key information documents for Packaged Retail and Insurance-based Investment Products (PRIIPs).

Joe Channer, Chief Executive Officer of Delta Capita, added: “By working closely with our clients to support their specific needs, not only is there a clear path to achieving best practice in product governance, but an opportunity to deliver a utility for structured product production. We expect this to result in more consistent standards, lowering of costs and improving efficiency. The upshot is that our customers will be allowed to focus their efforts on product development for their clients safe in the knowledge that they have a scalable and high quality service, coupled with a platform capable of supporting their business.”

Tesco cyber-attack provides regulatory food for thought

Every little helps when it comes to controlling the financial system, but Giles Kenwright of Delta Capita explains why the Tesco cyber-attack will hopefully trigger banks and regulators to look at the bigger compliance picture .

A cyber-attack that wiped £2.5 million from a major supermarket’s client accounts in just a few hours, should ring alarm bells across the boardrooms of Britain’s biggest banks. While the damage to Tesco’s brand reputation may be substantial, more significant still is that this attack could be a sign of things to come for the wider banking sector.

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Clock synchronisation…time is ticking

MiFID II’s clock synchronisation rules have given the buy-side plenty to think about, Hayley McDowell looks at the challenges and how technology is helping.

In August this year, UBS signed an agreement with the National Physical Laboratory in the UK to implement its time accuracy technology, ahead of regulatory synchronisation reporting requirements. The technology was described as ‘atomic’, with the laboratory currently operating two of the world’s most accurate clocks – accurate to one second every 158 million years.

The global co-head of equity electronic agency trading at UBS, Chris McConville, said at the time the clock would “provide UBS infrastructure with a stable, accurate and resilient time signal, whilst simplifying the MiFID II time synchronisation traceability requirements.”

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Worth more than the paper it’s written on

Can collateral optimisation work if legal agreement execution remains pedestrian? Bimal Umeria and Jonathan Adams of Delta Capita take a look

The slow, fragmented and manual process of changing legal agreements increases risk for all market participants. One consequence of multi-jurisdictional business growth, product diversity and increasing regulation is that the contractual process becomes more fluid. Legal agreements, their annexes and addenda require regular review and change. This has led to an increase in administrative burden and legal costs for all participants in the securities finance industry. […]

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Too early for the buy side?

Awareness building is imperative to ensure that collateral management efficiency is given focus so that is can have an impact on the bottom line, according to Jonathan Adams of Delta Capita.

Earlier in 2016, it was reported that despite some considerable investment and development of collateral management applications, utilities and services, there was very little take up by the buy side. This is a significant finding given the potential benefits for asset management firms to further mobilise portfolio assets for day-to-day requirements such as managing liquidity risk and meeting margin call obligations. […]

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The Ability to Constantly Learn, Change, and Execute: Digital Transformation

Paul’s Growing Digital Understanding

Paul is an executive manager in financial services and just came back from a business trip to Singapore, where he was inspired by workshops about Digital Transformation. On the flight home he had plenty of time to consider his personal as well as his professional digital awareness.

Paul was born 45 years ago, in 1970, an era where there was no digital at all. His first memory of media and communications are over 40 years old and all about analogue models: a world in which radio, tv, newspapers, shopping, doing business, banking and all other things had nothing to do with each other. Each of them was an isolated island, a physical world that was relatively easy to understand, with physical restrictions, strict opening times and lots of paper work. […]

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ESMA guidance on Mifid II comes just in time

Giles Kenwright, head of regulatory advisory at Delta Capita, reacts to ESMA’s latest Q&A on Mifid II, as market participants face a race against the clock just over a year out from implementation. 

Hot on the heels of the FCA’s consultation paper at the start of this month, ESMA Q&A guidance for Mifid II undoubtedly removes a good chunk of ambiguity. Until now, the previously released RTS documents, which outlined the conceptual framework for Mifid II, were often far too vague to allow business or technical solutions to be implemented.

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R3 represents progress – but the Blockchain foundations still need to be laid!

With a host of big names continuing to sign-up to the Blockchain consortium R3, Trevor Belstead at Delta Capita explains why groundwork still needs to be done before distributed ledger technology solutions become a reality.

Like the well-known biblical reference about building a house on bedrock not sand – the same could very well be said of Blockchain. From an initial group of 9 to well over 50 firms in under a year, the R3 Blockchain R&D group has come a long way in a relatively short space of time.

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Plato Partnership selects Delta Capita

Delta Capia selected to deliver corporate governance, operations management and project services for Plato Partnership, and to coordinate its Market Innovator.

London – Delta Capita, the business and technology consulting firm, has been appointed as the official consulting partner and managed services provider to Plato Partnership. The move follows the go-live of Plato’s cooperation agreement, with Turquoise, the European MTF.

Plato Partnership is a not-for-profit industry group of buy and sell-side firms who are collaborating to bring creative solutions and efficiencies to the equity marketplace. The service arrangement involves delivery of corporate governance, operations management and project services for Plato Partnership, as well as the coordination of its Market Innovator (MI3).

The service will be provided from Delta Capita’s managed services business in London and supported by its offshore managed services hub in Johannesburg.

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