Source: DTCC
New York/London/Hong Kong/Singapore/Sydney, Aug 5, 2024 ‒ The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the launch of DTCC’s Insurance & Retirement Services’ (IR&S) Producer Authorization (PAR) service, a standardized method for insurance vendors and distributors to communicate with carriers to verify producers' authorization that is mandatory to sell insurance products. PAR deploys synchronous messages, allowing distributors and vendors to ping carriers instantly to certify producer credentials, streamlining processes and increasing operational efficiencies.
Today, financial advisors are required by regulation to be properly licensed, appointed and trained to solicit and sell insurance products. PAR helps to standardize and automate this process by enabling distributors to properly validate producers’ credentials and qualifications in real time in order to understand whether individuals are permissioned to sell certain products in specific jurisdictions. This eliminates the need for firms to adopt and manage multiple proprietary processes and provides producers with the ability to proactively take corrective actions and lower Not in Good Order application submissions.
“There was an industry need for a unified service, that provides real-time producer data, and we are pleased to now offer PAR,” said Justin Schwartz, Executive Director, Product Management for Wealth Management Services. “In the development of the offering, we focused on building out a standardized ‘can sell’ API message platform that improves client and advisor experience by providing increased confidence in authorized producers. We look forward to continuing to enhance our services to best meet the evolving needs of our clients and the industry.”
PAR leverages the ACORD Next-Generation Digital Standards (NGDS) UC-251 “Verify Producer Can Sell Annuities” User Story, providing enhanced licensing, appointments and training credentials that permits distributors to submit carrier message requests while simultaneously allowing carriers to determine if producers are authorized to advance new business applications. PAR can be utilized at any point during the solicitation/sales process, and the message statuses are readily available via API.
“There has been a need for a new insurance industry standard around real-time authorizations. This innovative solution has facilitated increased standardization in our messaging capabilities by streamlining processes which allows us to confirm a producers’ ability to sell a product for multiple carriers by accessing a single data point. We are excited to offer this service to our partners,” said Doug Massey, EVP Sales at Hexure.
ABOUT DTCC: With over 50 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 20 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency, enhancing performance and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm innovates purposefully, simplifying the complexities of clearing, settlement, asset servicing, transaction processing, trade reporting and data services across asset classes, bringing enhanced resilience and soundness to existing financial markets while advancing the digital asset ecosystem. In 2023, DTCC’s subsidiaries processed securities transactions valued at U.S. $3 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $85 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes more than 20 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, X, YouTube, Facebook and Instagram.