Insurance & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Policy Administration

03:58 PM
Connect Directly

DST Systems Expands Insurance Offerings with SaaS and BPO Policy Admin-Related Services

DST Systems expands insurance offerings with SaaS and BPO policy admin-related services; Bonnie Wasgatt to head DST Insurance Solutions, wholly owned subsidiary created to support growth opportunities for annuity and life insurance carriers.

Forecasts are that insurers will be making significant investments this year in new or updated policy administration systems, but not every company wants to take on the logistics and risks of implementing and maintaining new software. To that end, Kansas City-based DST Systems has launched DST Insurance Solutions, a wholly owned subsidiary that, according to a company statement, "will deliver best-in-class outsourced policy administration and payout technology and services for annuity and life carriers." Bonnie Wasgatt, who most recently was senior vice president of Swiss Re-Global Admin Re, has joined DST Insurance Solutions as president. "Rather than licensing our software, clients can select a SaaS paradigm, or SaaS with some business processes outsourced," she explained in an email interview with I&T. "DST Systems has provided outsourcing solutions for more than 40 years to markets that are adjacent to the insurance industry. DST's commitment to a services business model -- to delivering technology, efficiency and scale to support multi-tenant recordkeeping -- distinguishes us in this marketplace."

According to Wasgatt, DST's policy administration outsourcing solutions can be applied "throughout the insurance value chain," including functions such as new product implementation, marketing/customer acquisition, new business, policy processing, agent and client service, and claims processing and payout. Its payout administration solution, she adds, will be built to accommodate single premium immediate annuities (SPIA), partial annuitization of a deferred annuity, deferred annuity living benefit riders, variable payouts, life settlement options, structured settlements, longevity annuities, and stand-alone living benefits.

In addition to the new offerings, "DST Insurance Solutions will continue to deliver complementary solutions including print, mail and electronic delivery capabilities; and distribution support solutions to help financial advisors better manage customer information; [and] content management services that provide a secure, central repository for access to information," Wasgatt says.

DST Insurance Solutions will offer its services to carriers offering fixed and variable annuities on an ASP (application services provider) and full-service BPO basis through Boston Financial Data Services, a third-party transfer agent that is a joint venture between DST Systems, Inc., and State Street Corp. "DST will leverage Boston Financial's expertise in process/knowledge management to support BPO services for DST Insurance Solutions," Wasgatt says. The subsidiary will modify the Percana international pension administration system from another DST/State Street joint venture, transfer agency International Financial Data Service (IFDS), to the U.S. market, and make it available on an outsource basis -- either SaaS or BPO, with Boston Financial providing the BPO services.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio

Register for Insurance & Technology Newsletters