The Depository Trust & Clearing Corp. says increasing volume is helping it reduce the cost of some of the services it provides for distributors of life insurance and annuity contracts.
The DTCC, New York, a company that supplies a variety of technology services for the securities industry, the insurance industry and other financial services industries, will be cutting a variety of “positions & valuations” fees.
Fees for organizations that generate fewer than 500,000 transactions per year will hold steady at $8 per 1,000 transactions, but fees will fall 11%, to $4 per 1,000 transactions, for organizations in the 500,000-to-2 million transaction category; 20%, to $3, for organizations in the 2 million-to-4 million transaction category; and 43%, to $2, for organizations in the over-4 million transactions category, the DTCC says.
The positions & valuations fee reductions will take effect July 1, the DTCC says.
Total insurance transaction volume increased 18% in 2006, to 2.7 billion transactions, the DTCC says.
DTCC positions & valuations service automates the transmission of annuity and life insurance contract details, such as information about assets under management and current contract values.