The National Securities Clearing Corp. wants to use insurance transaction processing information to start an insurance market data service.
The proposed NSCC Analytics Reporting System would use actual NSCC Insurance and Retirement Processing Service (IPS) transaction information, rather than surveys, to produce insurance product sales statistics and other insurance market statistics, according to the NSCC.
Today, the NSCC says, insurance sales data providers tend to rely heavily on publicly accessible financial information, voluntary insurer surveys, and proprietary analytical tools.
“Reliance on survey results and the aggregation and analysis of those results often makes the information several months old by the time it is distributed to subscribers,” the NSCC says.
Because the NSCC Analytics Reporting Service would use current IPS data, it should be able to provide market information faster and more efficiently, the NSCC says.
The service could help insurers make decisions about sales, marketing and product development efforts, the NSCC.
The NSCC would let insurers opt out of insurer ranking tables, but it would keep those insurers’ data in overall market volume totals.
The proposed NSCC service could end up competing head to head with a number of annuity market data providers.
But the NSCC “does not believe that the proposed rule change will have any impact or impose any burden on competition that is not necessary or appropriate in furtherance of the purposes” of the Securities Exchange Act of 1934, the NSCC says.
The NSCC, a unit of the Depository Trust & Clearing Corp., New York, has sent a notice about the new Analytics Reporting Service to the U.S. Securities and Exchange Commission.
The SEC already has approved the Analytics Reporting Service program, but it has published a copy of the notice in the Federal Register to seek public comments. Comments are due Jan. 19, 2011.