Technology is key in navigating market changes: Clearwater’s Wenzhe Sheng.

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• Clearwater Analytics is focused on revolutionizing investing with technology
• Technology is key in navigating regulatory and accounting changes in the insurance industry

Clearwater Analytics, a SaaS investment management solution, is at the forefront of utilizing technology to navigate regulatory and accounting changes in the insurance industry. Wenzhe Sheng, Senior Product Manager for EMEA Prudential Regulations, highlighted the importance of technology in addressing challenges such as regulatory reforms like Solvency II and IFRS 17. These changes require insurers to provide detailed reporting and data granularity, making the transition complex and ongoing. Sheng emphasized the need to move away from legacy systems towards modern solutions like the Cloud and AI.

Another significant aspect is the impact of accounting standards like IFRS 9 and IFRS 17, which trigger operational and system changes with significant costs. Sheng noted that Clearwater’s focus on technology provides insurers and asset managers with an operating model for the future, streamlining investment data aggregation and reporting. Tokenization and AI were also highlighted as key topics, with tokenization offering standardized data processing and AI being seen as an unstoppable force in the industry.

In a volatile market environment with unsettled inflation and interest rates, investing in technology becomes crucial for stability and profitability. Sheng suggested that companies should reinvest in infrastructure and technology to maintain profitability and ensure investor satisfaction. The expectation is that inflation will stabilize in the first half of the year, with potential rate cuts in the second half to stimulate market recovery.

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