#London #United Kingdom #PRA #Transcend #UK Insurers

Transcend Launches a New Service for UK Insurers

Transcend, recognized as a pioneer in collateral and liquidity optimization technology, has recently announced the launch of its tailored service aimed at assisting UK insurance companies. This initiative is particularly critical as it addresses the new collateral stress testing requirements introduced by the Prudential Regulation Authority (PRA), as outlined in consultation paper CP19/24.

These updated regulations impose stricter demands on insurers, necessitating a deeper understanding, constant monitoring, and effective forecasting of collateral requirements during tumultuous market conditions. As the compliance deadline approaches on September 30, 2026, many insurers face substantial challenges concerning data handling, modeling, and operational processes—issues that current technological solutions are not ideally equipped to manage.

The innovative service provided by Transcend offers a comprehensive framework specifically designed to meet these regulatory expectations without further burdening existing systems or teams. At its core, the service integrates Transcend's powerful data optimization engine with streamlined workflows that align with the PRA's stringent standards for scenario design, collateral projections, and assessments of liquidity impacts.

In the words of Bimal Kadikar, CEO of Transcend, "Insurance firms are under pressure to comply with evolving regulatory standards while maintaining increasingly complex market-driven collateral demands. Our goal is to give insurers a fast, reliable way to meet the PRA's expectations while improving their visibility and control over collateral under stress."

Key Features of Transcend’s New Service

Transcend’s service is equipped with several key capabilities that empower insurers to navigate the complexities posed by the new PRA requirements:

• - Automated Data Handling: The system automates the collection, verification, and enhancement of collateral and exposure data across various booking systems, custodians, and investment portfolios, simplifying the data processing workflow.
• - Scenario-based Modeling: The service features scenario-based modeling that meets the PRA's demands outlined in CP19/24, allowing for accurate assessments of different market conditions and their implications.
• - Proactive Projections: It offers forward-looking assessments of collateral requirements and potential liquidity pressures during stress situations, enabling firms to make timely adjustments.
• - Identification of Shortfalls: Insurers can quickly identify potential shortfalls in collateral and explore opportunities for optimization, thus ensuring better risk management.
• - Role-Specific Reporting: The service provides tailored reporting functionalities that cater to the needs of different stakeholders, including risk teams, senior management, and board members.
• - Optional Integration: For firms interested in a broader digital transformation, there is an option to integrate this new service with Transcend's enterprise collateral optimization platform.

As Todd Hodgin, CPO of Transcend, remarked, "Regulation is tightening, timelines are short, and insurers need a partner fluent in both the technical and operational realities of these complex new requirements. This service gives firms an immediate path to compliance while laying the groundwork for broader, long-term efficiency gains."

While the solution primarily aims to address the specific needs of UK PRA regulations, it is also designed to serve global insurers who seek enhanced visibility into how their collateral needs fluctuate during periods of market stress. This advanced insight equips insurance firms to make more informed decisions regarding liquidity, risk management, and operational readiness, thereby reinforcing their overall strategic positions.

About Transcend

Transcend is dedicated to delivering innovative technology solutions that facilitate market participants in optimizing collateral, enhancing liquidity management, and streamlining post-trade operations. With an impressive clientele spanning both the buy side and sell side, Transcend offers a unified platform for analytics, data integration, and workflow automation.