2015 Insurance Asset Management Analytic

New Developments

2015 Insurance Asset Management Analytic

2015 Insurance Asset Management Analytic

Insurance Asset Management – A Bridge to Corporate Profitability

Meredyth Sneed and Amelia Lanfrankie – Spring 2015

This wide-ranging analysis evaluates the key business trends influencing the insurance industry, including how insurance companies are reorienting their investment strategies and reengineering their investment units to address the challenging economic environment. We consider how these changes impact the breadth of insurance businesses, identifying emerging trends in Life, Health, P&C, and Reinsurance investment approaches. By examining these trends from the perspective of both domestic and international insurers, we seek to present a comprehensive view of an industry that is becoming increasingly global. We also consider the opportunity this presents for asset managers, both traditional and alternative, and the tactics they can use to capitalize on its potential.

Read press coverage of Patpatia’s Insurance Asset Management Analytic:

Please click here for a free download of the report.

Alternative Investments in Insurance

New Developments

Alternative Investments in Insurance

Alternative Investments in Insurance

White Paper – Alternative Investments in Insurance

Meredyth Sneed – Spring 2015

Diversification and risk enhancement in an evolving general account investment management environment

Evolving Investment Strategies to Meet the Challenges of the Low-Yield Economic Environment

As traditional fixed income strategies have generated declining returns in the low yield environment, insurance companies have been spurred to search for new investment opportunities, including alternative asset classes. For many firms, these investments constitute a fundamental change to their insurance general account investment practices, to be harnessed not only to enhance returns, but also to better manage risk through portfolio diversification.

This diversification is happening in an evolutionary, not revolutionary, fashion. For all, fixed income remains the primary driver of yield. However, many insurers who had previously focused efforts exclusively on selecting investment grade, domestic fixed income (i.e. core bond strategies) are now beginning to experiment with both higher-yielding investments and equity-type investments.

In the face of current economic challenges, insurers have found they need to fundamentally change their approaches to portfolio construction. Leaders are now deploying multi-asset portfolio optimization to harness the benefits of diversification to achieve superior risk-adjusted yields, without taking on outsized loss potential. Of course, this also necessitates that firms improve their market risk monitoring solutions.

Diversified Investment Strategies

Of course, insurers’ general account portfolios remain driven largely by income-oriented assets. These bond, commercial mortgage, and short term holdings are well suited to addressing the cash flow needs and stable values necessary to back insurance liabilities. Regulatory treatment, insurance ratings agency methodologies, and statutory & GAAP accounting prinicipals have all been aligned to favor these core portfolio components, locking them into their primary role in most insurers’ portfolios.

However, the insurance industry’s long-term trend toward higher-returning, capital appreciation-oriented asset classes is unmistakable, especially when one views the evolution of the industry’s portfolio distribution over the past five years. Although allocations to bonds have remained relatively stable since 2008 (approximately 72% of the portfolio), insurers have redeployed some of their cash & short-term bond positions that had built up following the financial crisis, decreasing as a proportion of the overall portfolio from 6.5% in 2008 to 4.1% in 2013. At the same time, allocations to equities and Schedule BA assets increased from 9.2% and 3.8%, respectively, in 2008 to 10.5% and 5.3% in 2013 (NAIC).

Increasing Investments in Alternative Asset Classes

As they attempt to maximize returns in a low-yield environment, many insurers have particularly increased their allocations to a variety of alternative asset classes, including hedge funds and private equity, as well as other specialty investments, such as infrastructure, mineral rights, aircraft leases, and debt & real estate limited partnerships. In statutory filings, these non-traditional investments are classified in the U.S. as Schedule BA assets.

This gradual evolution in strategy has been reflected in insurers’ portfolios. In fact, in 2013, Schedule BA assets accounted for 5.4% of insurers’ total invested assets, up from 3.8% in 2008 (NAIC).

This increase is reflected across the entire industry, as all business lines have grown their allocations to a material extent. P&C insurers implemented the largest increase in allocations to Schedule BA alternatives, from 4.6% of total invested assets in 2008 to 7.7% in 2013, capitalizing upon the relative flexibility of their constrained total return investment programs. Health insurers similarly increased their Schedule BA allocations from 2.7% in 2008 to 4.6% in 2013. L&A carriers made the most modest, though still significant, proportional increases to their Schedule BA alternative assets, from 3.5% in 2008 to 4.3% in 2013, due to the constraints of the book income investment approach and significant regulatory risk-based capital implications (NAIC).

Achieving Enhanced Financial Returns

Insurers are investing in Schedule BA alternative assets for a variety of reasons. Many are harnessing alternatives particularly to realize the diversification benefits of assets with returns that are less correlated to their core fixed income portfolios. A number also seek to tap enhanced return potentials through both yield generating (e.g. infrastructure, mezzanine finance, equity real estate funds) and capital appreciation (e.g. hedge funds, leveraged buyouts, distressed debt, venture capital, commodities) vehicles.

Unsurprisingly, yield on Schedule BA assets was typically higher than that on fixed income assets – around 7% for both L&A and P&C insurers. L&A insurers that focused more directly on yield-oriented strategies achieved a modest uplift from capital gains, producing a total return of 9.6%. P&C insurers, which made extensive use of appreciation-focused assets, benefited more significantly from capital gains, reaching 14.6% total returns. However, this was not universally the case. Health insurers’ Schedule BA investments yielded only 2.9%, failing to significantly outperform fixed income investments, with total returns that only reached 3.9% (NAIC).

Unique Tactics of Insurance Business Lines

Life & Annuity Insurers

Because of their preference for income over capital appreciation, L&A insurers have been slower than those in other business lines to make large proportional allocations to more volatile assets, such as equities and Schedule BA. Unlike other insurers, their use of equities has decreased since 2008; however, Schedule BA allocations have grown by nearly one percentage point. These have been limited not only to limit price volatility, but also to avoid onerous risk-based capital requirements, which are more severe than those imposed on property & casualty and health firms.

Historically when life insurers have invested in alternatives, they have concentrated on less liquid private asset partnerships. These are more compatible with their traditional book income strategies, investing in products that bring significant income potential (e.g. from mezzanine financing interest or infrastructure use fees/ real estate rents) or limited pricing volatility (e.g. illiquid private equity fund interests held at commitment values in initial years).

However, innovative life insurers are beginning to draw upon less correlated alternatives to mitigate overall portfolio risk. Firms have learned from the credit crisis that investing in fixed income does not automatically protect from value impairments. Therefore, many life insurers are now keeping greater attention on portfolio total returns, while still investing to maximize book yield. In that light, they are starting to grow modest exposures to less correlated hedge fund and commodity investments to reduce aggregate portfolio volatility and increase risk-adjusted total returns.

Property & Casualty Insurers

Due to the distinct nature of their liabilities, P&C insurers have greater latitude in selecting investment strategies than do their L&A peers. Unlike L&A insurers, most P&C companies’ liabilities are typically short-term and claims payments tend to be covered by current premiums. As a result, their general account reserve portfolios are generally significantly smaller relative to their premium flows when compared to those of life insurers, who need to save up for large, predicable future payments.

P&C insurers’ more modest investment portfolios are relied upon primarily to cover these unanticipated cash flow needs resulting from high claim events. This requires P&C insurers’ investment portfolios to maintain significant levels of liquidity, allowing asset sales to raise any necessary cash in these loss scenarios. P&C firms have reallocated funds from bond & cash postions into appreciation-oriented assets, such as private equity and hedge funds.. This has resulted in P&C insurers having the largest allocation to Schedule BA assets of any business line (7.7%, vs. 4.3% for L&A and 4.6% for health).

Health Insurers

In many ways, modern managed care health insurance businesses represent an outlier in the marketplace, with business fundamentals and investment patterns that differ significantly from those of peer companies in the L&A and P&C business lines. Health insurers’ business models more closely parallel operating companies, financing healthcare networks for ongoing preventative as well as critical care, than they resemble the traditional indemnity insurance models of life and P&C firms. This limits the need for large, long-term investment portfolios.

However, health insurers do maintain focused long-term investment portfolios to both protect against unanticipated claims incidence and boost corporate returns.  Leading health insurers have been seeking to mitigate the effects of the low-yield environment by adjusting their portfolios in favor of higher returning assets, and have approximately doubled their allocation to Schedule BA assets (2.7% to 4.6%) since 2008.

Alternative Asset Class Spotlight: Private Equity & Hedge Funds

Insurers have particularly focused on private equity and hedge funds. In 2013, U.S. insurers’ total investments in private equity and hedge funds, including those made without a traditional asset manager as an intermediary, reached 1.5% of insurers’ total invested assets – a 5.9% CAGR from 2008. Private equity accounted for 73% of these investments, while hedge funds made up the remaining 27%. The remainder of Schedule BA assets were comprised of focused credit strategies, infrastructure & private real estate fund investments, and other commingled investment solutions.

Private equity has long been a component of many insurers’ portfolios. Insurers, particularly life carriers with long duration liabilities, have been attracted to private equity’s multi-year investment cycle and illiquidity premium. Many are also attracted to its lack of mark-to-market pricing, avoiding the earnings volatility generated by public equity investments.

However, private equity’s illiquid nature and vintage year dependency of returns are portfolio construction challenges for many insurers, particularly in property & casualty lines, where liquidity is prized. Even in the life segment, certain income oriented strategies, such as mezzanine finance, have been preferred, and many insurers are reallocating their alternatives portfolios toward greater hedge fund exposure upon maximizing their illiquid equity risk budgets.

Although subject to mark-to-market driven earnings volatility, hedge funds present a very attractive value proposition for many insurers, leading to strong recent growth. Particularly attractive is hedge funds’ ability to harness a diverse array of investment & trading strategies that may be combined to address nearly any risk-return spectrum. Furthermore, experienced portfolio strategists may assemble multiple investments into customized, liability-driven portfolios in a way that other alternatives cannot. Furthermore, certain delivery vehicles, such as hedge fund managed accounts, provide lookthrough transparency to underlying securities holdings, allowing for improved monitoring and, in certain circumstances, superior capital treatment.

Insurance Company Implementation Tactics

To address these challenges and grow their exposure to alternative asset classes, insurers are taking advantage of diverse hedge fund & private equity access points.

Historically, firms have relied primarily on of the shelf fund of funds vehicles. However, along with the double layer of fees, these portfolios are rarely optimized for insurance companies objectives. Only recently have fund of funds providers begun to develop insurance-specific portfolios tailored to liquidity & volatility targets, and insurers broader investment strategies (e.g. fixed income replacement).

Insurers are also beginning to retain these firms to assemble fully custom portfilios optimized for their unique needs. By retaining managers of managers that have an actionable understanding of insurance investments and regulatory constraints, insurers may investment disciplined alternatives portfolios constructed to maximize diversification benefits within insurance company general accounts, in order to best capitalize on RBC or economic capital model covariance factors to reduce net capital charges under U.S. statutory or Solvency II regimes.

Increasingly, insurers are turning to managed accounts providers, particularly for hedge funds & managed futures solutions. These managed account platforms provide the reduced fees, security, transparency, and liquidity of segregated investments, alongside the superior manager access and disciplined due diligence provided by multi-manager providers.

Larger insurers are also increasingly building out their own alternative investment teams to support direct placements into partnerships. In certain segements, particularly income oriented private asset opportunities including equity real estate, infrastructure, and mezzanine finance, insurers are also coordinating co-investment programs alongside managers and creating their own domestic and international deal sourcing capacity.

This remains a struggle for many organizations however, as only the largest insurers yet have sufficient allocations to justify large teams comparable to leading funds of funds advisors. This is leading several to employ multi-manager fund advisors on a consulting basis, to capitalize on their access to top managers and deep investment & operational due diligence resources.

New: Next Generation Managed Advice

New Developments

New: Next Generation Managed Advice

New: Next Generation Managed Advice

White Paper - Next Generation Managed Advice

Amelia Lanfrankie – Spring 2015

Lifetime relationships & UMH programs through advanced wealth solutions, advisory experiences, operations, and technologies

Defining the Next Generation in Managed Advisory Solutions

The fee-based advisory industry has been evolving rapidly, working to keep pace with shifting consumer expectations and effectively address the needs of not just the high net worth, but also those of ascending demographics, such as the Millennials and other middle market & mass affluent consumers. A number of defining characteristics have emerged:

1. Standardized Wealth Offerings

Wealth managers are making it easier for advisors to seamlessly capitalize on and grow the full lifetime potential of their client relationships by standardizing their managed account suites.

One key component is the unification of full managed product suites under a single advisory agreement and the implementation of a universal advice process. This consolidated arrangement allows advisors and clients to add or change managed accounts without having to deal with disruptive and lengthy transition processes.

Firms are also reengineering their managed products to provide structural consistency across features, pricing, investments, and compensation models. Along with technology enhancements, these changes are helping streamline sales, implementation, and servicing processes to realize lifetime relationship’s benefits

2. Coordinated Multi-Account Management

Fee-based programs are enabling advisors to deliver advice in a more natural, transparent manner through managing across objectives, rather than at the individual account level.

Multiple disparate accounts (e.g. fund wrap, SMA) are being organized into a single “Unified Managed Household (UMH)” relationship group. The accounts in the UMH are managed together towards specific investment goals (e.g. retirement decumulation), while accounting for both practical (e.g. tax) and mechanical differences between the individual accounts.

Technology is key to enabling multi-account management, by facilitating time-consuming activities such as rebalancing and reporting upon nested account- and relationship-level models. Automated household management can also help advisors provide value add tax-aware investing with quantifiable tax alpha, by easing targeted asset location and lot level management across account registrations

3. Consistent Client & Advisor Experiences

Wealth firms are actively improving their client & advisor interactions and processes, while ensuring that they are compliant and risk-managed.

This involves the development of uniform investment management practices, including guided models & constrained customization, to generate superior results while still allowing advisors to address unique client situations.  This also ensures consistency across client segments and within multi-account households. These uniform practices are supplemented by intuitive, automated workflows to easily direct sound advisor behavior (e.g. rules-based alerting, portfolio management workflow automation).

To ensure proper oversight of the experience, institutions are also implementing programs & systems to proactively analyze advisor-directed activity (e.g. holdings analysis, performance dispersion), and formalizing procedures to address imprudent activities.

4. Technology Enhancement

Institutions are further capitalizing upon the rapidly advancing capabilities of managed solutions technology (e.g. advanced data analytics & management, automation) to better competitively position their programs with both advisors and clients.

Ensuring investment programs and advisors are effectively supported by an integrated suite of systems (e.g. financial planning, performance, rebalancing) is a key concern. Many firms are employing best of breed solutions, outsourcing non-core functionality and building differentiation through their advice & investment competencies.

Fundamental to any advisory platform is ensuring that all systems are linked through an effective data management strategy. Inefficient or inaccurate information flows can paralyze system operations and erode the advisor & client experience.

Implementing Next Generation Advisory Programs

While wealth management institutions may understand what their next generation managed programs should look like, many are struggling with defining and implementing the necessary steps for transformation. Effective execution of these new programs involves strategic decision-making and innovation in number of key areas:

Wealth Solutions Design

Firms are focused on developing market-differentiated product packages for disparate client situations and advisor approaches:

  • Product standardization (e.g. pricing, features, compensation) across all managed accounts in line with market expectations to support the unified advisory program experience
  • Assessment of implementation of new investment management functionalities (e.g. tax harvesting, goal-based model portfolios) to address gaps in client financial lifecycle needs
  • Tailoring of products to specific consumer segments (e.g. fund wraps for Millennials, UMAs for Baby Boomers) & objectives (e.g. liability-driven retirement income strategies)
  • Structuring of transition programs to effectively rollout new lifecycle & household advisory programs without disruption to the current clientele & advisor force
Advisory Experience Reengineering

Wealth managers are also comprehensively remaking their business processes to initiate best of breed sales & servicing experiences:

  • Implementation of new goals- and values-based financial planning & investing and integration with core systems for advisor efficiency & customer transparency
  • Definition of customer segmented service experiences and detailed process flows
  • Definition of new system requirements to remove manual burdens from advisors and enforce consistent delivery (e.g. automatic tax management, advisor trading tools)
  • Systematic deployment of automated workflows across sales, planning, onboarding, portfolio management, reporting, and servicing to guide advisor change management
Systematic Implementation

Institutions are further gaining leverage through optimization of operations & compliance programs:

  • Creation of unified servicing operations flows to implement true household-based management across suitability, client mgmt., fees, advisor compensation, and reporting
  • Establishment of automated alerting (e.g. advisor trading behavior & performance analytics) & audit tracking to effectively identify and address inappropriate advisor behavior without disintermediating the advisor-client relationship
  • Development of new disclosures, agreements, and systematic reporting to harmonize the new relationship-based experience with regulatory requirements
Technology Enhancement

Firms are realizing immediate, tangible improvements through new unified front & back-office wealth advisory systems environments:

  • Comprehensive functional and technical requirements definition spanning core advisory system components (e.g. model mgmt., rebalancing, onboarding, performance, servicing)
  • Internal capacity rationalization and assessment of development & outsourcing alternatives
  • Best of breed vendor evaluation and design of integration, configuration, and custom enhancement plans, including use cases, development project planning, & UAT scripts
  • Development of effective data management strategies, including holistic information flow analysis and data architecture design



How We Help

How We Help

How We Help

How We Help

Bespoke business strategies for the financial services

Financial services firms face substantial pressure to meet performance goals and provide improved services to their clients, all while minimizing risk. Today’s economic climate rewards institutions that are willing to expand into new markets and reshape existing businesses.

Patpatia & Associates has the experience, insight and creativity to help

We are dedicated management consulting professionals with tested industry expertise, who produce innovative, practical, and executable business strategies. Patpatia & Associates offers a wide range of consulting services, delivering methodical strategic planning and clear implementation tactics to address challenges confronting financial services firms today.

Our singular financial services focus cultivates tailored solutions

As a specialist consultancy, we excel at generating innovative and well-defined strategies tailored to each client. Patpatia & Associates is defined by our:

  • Deep, hands-on knowledge of the financial services industry
  • Results orientation, focused on guiding projects to successful execution
  • Detailed advice and guidance to manage implementation risk
  • Consistent history of business and technology innovation
Guiding Philosophy


Guiding Philosophy

Guiding Philosophy

Fundamental Principles for Creating Business Solutions:

A Partnership Focus

We view working with our clients as a partnership. When preparing for any assignment, we tailor our
services & approach to ensure that the specific and unique needs of each client are comprehensively addressed. Every engagement is approached with a fresh perspective, allowing us to adapt our activities to each company, as well as emerging trends in the marketplace.

We work closely with senior managers to ensure that objectives are met as expected and that our knowledge base is transferred into their organizations.

Specialized Expertise

Our singular focus is on the financial services industry. Our professionals have in-depth industry knowledge and operating experience in the development and execution of wealth management, insurance, and asset management businesses. Our strategies are further tailored based upon our extensive proprietary industry research and analysis.

Execution-Oriented Approach

As the success of any strategy hinges upon its effective execution, we work together with clients to realize the business vision throughout the implementation process. In this, we collaborate with senior managers to ensure that goals are realistically defined and achieved.

Representative Clients


Representative Clients

Representative Clients

Our Experience

We have assembled custom business strategies in the financial services industry for over 20 years

Our consultants are true practitioners and have extensive operational & consultative experience in the financial services industry. From go-to-market planning, to design and assistance with implementation of operational capabilities, we have worked for over two decades to help our clients achieve their business goals.

Leading Financial Services Companies Trust Us to Deliver

Patpatia & Associates has been retained by leading firms in the financial services industry throughout the Americas, Europe, and Asia. Our clients benefit directly from our strategic outlook and comprehensive knowledge of domestic and international markets, as well as from the long-term relationships we have developed with industry participants, including technology and service providers, that assist in delivering on the solutions we shape.

Among our clients are a wide array of preeminent firms in the financial services industry. We are proud to have worked with the following companies, and we have long-term relationships with many of them.

Select Clientele

2014 Survey Request Form

New Updates

2014 Survey Request Form

2014 Survey Request Form

Insurance general account outsourcing has increased at a 7.2% CAGR since 2006, and now constitutes a significant asset gathering opportunity for traditional and alternative managers alike. $1.5 trillion of insurance assets are now managed by third-party asset managers, a figure expected to reach $3 trillion by 2017. Patpatia & Associates’ 2014 Insurance Asset Management Survey offers insight into evolving insurance investment approaches, including the impact of global regulatory changes & the sustained low-yield environment on insurance investment strategies.

Please fill out the form below to request a complimentary copy of Patpatia & Associates’ 2014 Insurance Asset Management Survey. Click here for more information on our Asset Management Practice, and here to learn about the custom solutions we design for insurance clients.

 Follow us on Twitter and connect with us on LinkedIn for further news and insights.

Industries Overview


Industries Overview

Industries Overview

Expertise Across the Financial Services

We create solutions that fit your business needs

From strategy through execution, Patpatia & Associates delivers unique solutions across three principal industry practice areas:

  • WEALTH MANAGEMENT: We work with a breadth of global wealth advisory businesses, including brokerage firms, retail & private banks, and insurers, for whom we develop innovative offers, marketing strategies, investment programs, and technology platforms. Read More >
  • INSURANCE: We assist insurance and reinsurance companies to grow their core businesses through entry into new markets, expanded distribution channels, improved infrastructure, and optimized investment programs. Read More >
  • ASSET MANAGEMENT: We help firms execute upon domestic & global market extension strategies, including developing competitive business platforms and alternative investment offerings, within both retail and institutional markets. We also proactively help asset managers enter into the insurance asset management marketplace. Read More >

Wealth Management



Wealth Management – Overview

Helping Wealth Managers Excel

In today’s economy, many depend upon wealth managers to achieve their financial goals. However, navigating the volatile investment marketplace poses considerable challenges for these financial institutions, from increased competition and demand for transparency, to the ever widening array of new investment products & technologies. We have helped a breadth of global brokerages, retail & private banks, and advisory firms to reposition themselves to remain competitive in the face of these and further challenges.

Our general areas of expertise include:





Insurance – Overview

Custom Solutions to Help Insurers Surpass Competition

Insurers in today’s economy face numerous challenges, encompassing shifting consumer demographics, rapid technological change, and regulatory & risk management concerns. Patpatia & Associates provides life, P&C, and health insurers & reinsurers with actionable solutions to increase growth, improve competitiveness and drive profitability in the near and long term.

We help insurers generate results through:





Asset Management – Overview

Custom Blueprints for Building Investment Businesses

Improving profitability and maintaining growth can be a challenge in today’s highly competitive and increasingly regulated investment management marketplace. Our Asset Management Practice collaborates with clients to build sustainable investment businesses, bringing a unique combination of experienced operating perspective, proprietary industry research, and a hands-on implementation orientation. We assist asset managers, diversified financial services providers, and investment boutiques to enter new markets, innovate investment products, and rework distribution platforms to drive successful asset gathering domestically and internationally.

Consulting services that we provide include:

Market Development

Wealth Management

Market Development

Market Development

Wealth Management – Market Development

Seizing Opportunities for Growth

A firm’s growth and prosperity depend upon effectively capitalizing on all market opportunities. We help clients seize these opportunities by both easing entry into new markets and enhancing the productivity & reach of current channels.

Our strategies include:

  • Unlocking new client segments (e.g. HNW) for sustainable, present & future directed growth
  • Deepening wallet share by shaping producers into more effective advisors
  • Deploying segmented marketing & rollout strategies to maximize channel effectiveness
  • Developing complementary sales models (e.g. advisor, direct, bank) to ensure market saturation
Advice Experiences

Wealth Management

Advice Experiences

Advice Experiences

Wealth Management – Advice Experiences

Creating the Client Experience

A compelling client experience can transform a firm’s identity and value proposition. Creating this experience is a multi-faceted process, triangulating the relationship between the firm, advisor, and client in an omni-channel environment.

We improve the client experience by:

  • Facilitating Personalization
    We segment customers, deploy true values and goals-based financial planning across entire households (i.e. UMH), and reengineer the advice-based engagement model to ensure advisors can fulfill each client’s unique financial needs
  • Increasing Advisor Productivity
    We develop client-optimized value propositions (e.g. total client solutions, lifecycle planning) with guided workflow and advisor technologies to improve efficiency and ease asset-gathering
  • Simplifying Client Management & Communication
    By integrating advisory and support infrastructure and implementing new electronic communication & delivery technologies, interacting with clients becomes a simple, easy process
  • Evolving Enterprise Digital Business Models
    Creating & launching new digital engagement platforms to strengthen existing traditional, in-person advisory models and building out direct servicing capabilities for improved responsiveness & customer satisfaction
Wealth Offerings

Wealth Management

Wealth Offerings

Wealth Offerings

Wealth Management – Wealth Offerings

Building a Solid Foundation

Wealth managers require product platforms that generate sufficient returns, present a compelling client value proposition, and satisfy credibility & transparency concerns. We help firms to design and launch competitive wealth offerings optimized  for both their clientele and advisors.

Our product platform development capabilities include:

  • Advice-embedded offerings and liability-driven portfolios for comprehensive money managed solutions
  • Multi-product, open-architecture total wealth solutions (e.g. retirement income, insurance, & banking products) for enhanced cross-selling
  • Wealth product suites integrated into comprehensive advisory relationships & affluent/ HNW service models
  • Standardization of product suites (e.g. pricing, features, compensation) to ease upselling in a lifetime client relationship model
  • Alternative investment programs and retirement solutions (e.g. DB/DC solutions, retirement rollover offerings)

View this case study to learn more about how we can help you implement dynamic and productive investment platforms and strategies:

P & A Case Study: Private Wealth Management


Technologies & Infrastructure Modernization

Wealth Management

Technologies & Infrastructure Modernization

Technologies & Infrastructure Modernization

Wealth Management – Technology & Infrastructure Modernization

Making Technology Work

Effective technology and infrastructure platforms help wealth managers empower advisors, improve efficiencies, and support future growth. We work with both financial institutions and technology & infrastructure purveyors to create customized solutions. Our technology & infrastructure capabilities include:

  • Rationalizing and removing inefficiencies in  front-, middle-, and back-office systems & operations
  • Introducing disruptive technologies into both the producer desktop & back office environment
  • Integrating disparate distribution by creating efficient & automated multi-channel workflows
  • Creating & executing holistic data management strategies for unified platforms and to better support best of breed point solutions (e.g performance reporting, rebalancing, compliance)

Learn about the benefits of a technology solution for a financial institution designed and implemented by Patpatia & Associates:

P & A Case Study: Front- and Back-Office Platform Assembly

Market & Channel Expansion


Market & Channel Expansion

Market & Channel Expansion

Insurance – Market & Channel Expansion

Promoting Sustainable Growth

Adapting to changing consumer demands and tapping new methods of accessing markets can be challenging for insurers. Patpatia & Associates  helps clients achieve sustainable growth by promoting improvement across customer and market related factors.

Increasing Efficiency to Maximize Market Presence

We help clients to both improve business practices in current markets, as well as harness new sources of revenue by identifying underserved segments and reworking product offerings & marketing practices. Our strategies include:

  • Targeting underpenetrated customer segments and emerging market opportunities that are synergistic with firms’ current positioning
  • Developing & packaging customer-focused solutions (e.g. pre-retiree, elder market, wealth management) with customized products, services, and marketing techniques across segments
  • Creating and researching new products that integrate with firms’ current portfolio of offerings
  • Engineering relationship-based client experiences that are more proactive and productive
  • Identifying and supporting strategic acquisitions to build out new capabilities and market reach

Extending Distribution Touchpoints for Greater Reach

We help clients implement comprehensive and integrated distribution systems to ensure access to customers at all possible touchpoints. Our strategies include:

  • Segmenting sales channels and creating multi-channel delivery platforms to optimize distribution effectiveness
  • Designing field development programs to migrate agents up-market and guide change management for relationship-based servicing
  • Establishing third party and alternative sales channels (e.g. securities brokerages, banks, RIAs, affinity groups), as well as new distribution outlets (e.g. the Internet & mobile platforms)
  • Implementing group insurance & worksite marketing plans and integrating group & retail forces

Learn about the process of entering a new market:

P & A Case Study: Group Insurance

Insurance Investment and Risk Management


Insurance Investment and Risk Management

Insurance Investment and Risk Management

Insurance – Insurance Investment and Risk Management

Maximizing Risk-Managed Investments

Insurers and reinsurers across North America, Europe, and Asia, look to Patpatia & Associates to develop and execute superior risk-managed investment programs, for both their general and separate accounts. We work with clients to maximize their investments’ economic value and contribution to the bottom line through a broad range of initiatives, including:

  • Reworking the strategic design of the investment organization, including analyzing roles, workflows, and compensation
  • Developing outsourced investment programs, including oversight processes (e.g. benchmarking, portfolio analytics, incentives) and integration with internal management
  • Creating new investment capabilities, including support for lift outs and acquisitions
  • Diversifying into new asset classes and international investments to improve risk-adjusted yields
  • Implementing disciplined, liability-driven investment processes and enterprise risk-management & hedging programs
  • Rationalizing requisite infrastructure, reporting, and technology

P & A Case Study: Institutional Asset Management

Operations & Technology Optimization


Operations & Technology Optimization

Operations & Technology Optimization

Insurance – Operations & Technology Optimization

Greater Efficiency Through Modern Platforms

Outdated infrastructure and technology cause inefficiency in current operations and prevent companies from pursuing new opportunities for growth. We launch firms into the modern marketplace by overhauling current practices and introducing new solutions. Our consulting services include:

  • Refining the business operating model and ensuring best practices by benchmarking insurers to market-leading peers
  • Streamlining operations by reeingineering workflows in internal operations and facilitating strategic business process outsourcing
  • Consolidating key business functions (e.g. underwriting, policy administration) and evaluating new systems platforms
  • Establishing productivity enhancing and cost cutting technologies, such as insurance & annuity straight through processing platforms and digital communications & reporting
  • Executing new compliance platforms and business risk management
Emerging Business Models


Emerging Business Models

Emerging Business Models

Insurance – Emerging Business Models

Embracing Digital and Disruptive Technologies

Advances in technology and consumer expectations are forcing the insurance business model to evolve. We help clients create differentiated digital customer & advisor experiences to increase current revenues and position their distribution platforms for the future.

Our capabilities include:

  • Digital enhancement of career and independent agent channels to improve efficiency
  • Deployment of new, disruptive direct distribution technologies across the sales workflow to complement in-person field forces for on-demand servicing
  • Creation of digital marketing & servicing toolkits (e.g. gamification, mobile apps, web & video chat) to drive productivity of advisors and online service platforms
  • Development of web and mobile optimized products for remote servicing of consumers
Market Extension


Market Extension

Market Extension

Asset Management – Market Extension

Creating Opportunities For Expansion

The dynamic nature of today’s investment marketplace presents ample opportunity for growth. We help equity and fixed income managers capitalize on core investment opportunities, as well as generate new avenues for expansion in both institutional and retail markets. As subject matter experts, we can help with both development of actionable strategies, as well as hands-on assistance through execution. Our strategies include:

  • Developing new investment businesses, segment-specific product lines & services, and markets through actionable business plans
  • Establishing tailored business platforms for customized multiproduct investment solutions
  • Capitalizing upon unique circumstances and managers’ differing capabilities by designing specialized entry strategies
  • Creating a differentiated value proposition for segmented market & channel penetration through optimized marketing plans
  • Penetrating retail, affluent, and institutional markets by harnessing the potential of proprietary and third party distribution organizations and enhanced sales management & servicing programs
  • Providing tangible support throughout the implementation process, including support for acquisitions & partnerships
  • Streamlining operations by reengineering investment teams, portfolio management processes, and front-, middle-, & back-office platforms
Alternative Investment Strategies


Alternative Investment Strategies

Alternative Investment Strategies

Asset Management – Alternative Investment Strategies

Building Alternative Investment Abilities

We collaborate with clients to create and expand alternative investment capabilities, as well as to build businesses suited to source capital from institutional and intermediated markets. We have experience in all aspects of creating a leading asset gathering process, spanning product innovation, marketing, and distribution. Our services include both the development of strategic business blueprints, as well as implementation support.

We help with Alternative Investment Strategies in three key industry sectors:

Retail Wealth Management

  • Product strategy rationalization optimized for advisor-driven and direct channels
  • Establishment of liquid alternatives offerings aligned with market demand as well as the firm’s existing practices
  • Development of due diligence programs and selection of alternatives purveyors for both custom open architecture & packaged third party platforms
  • Creation of effective advisor and investor education, compliance oversight, alternative allocation advice, and marketing programs

Institutional Markets

  • Optimization of alternatives strategies specifically for regulated investors (e.g. insurers, banks)
  • Establishment of the multi-asset portfolio strategy fund analysis programs to initiate investment in alternatives
  • Evaluation of technology and infrastructure providers to ensure efficient alternatives platform operations

Asset Managers

  • Build out of alternative investment capabilities, including the facilitation of acquisitions, liftouts, and co-branded strategic partnerships
  • Assembly of proprietary and multimanager platforms for a comprehensive range of private & registered offerings
  • Design of market & channel strategies for specific alternative investment offers
  • Execution of launch programs for institutional, family office, and advisor distribution

P & A Case Study: Alternative Investment Market Entry & Advisory

Insurance Asset Management Market Specialization


Insurance Asset Management Market Specialization

Insurance Asset Management Market Specialization

Asset Management – Insurance Asset Management Market Specialization

Accessing an Underserved Institutional Market

Patpatia & Associates’  focus on the complementary markets of asset management and insurance uniquely positions us to work with managers to build sustainable insurance asset management businesses. We work with both traditional and alternative asset managers to penetrate the underserved insurance marketplace on both a domestic and a global scale. Our strategies include:

  • Capitalizing on general account & unit linked (i.e. variable) separate account portfolios by developing actionable entry strategies
  • Resolving the investment and capital & risk management challenges facing insurers (e.g. Solvency II) and rationalizing the evolving insurance marketplace
  • Differentiating our clients by assisting managers to design, develop, price, & package products optimized for specific insurance lines (life, P&C, Health, Re)
  • Guiding clients through the assembly of requisite insurance business infrastructure, including specialized servicing and technology platforms
  • Developing distribution strategies that fit optimally with each client’s specific capabilities and business presence
  • Establishing new insurance marketing & distribution organizations and implementing global entry tactics tailored for each country’s unique market, competitive, & regulatory needs

We also assist firms to improve their overall effectiveness in the broader institutional markets with a focus on implementing strategic sales management and client solutions-based investment strategies.

Private Equity Advisory


Private Equity Advisory

Private Equity Advisory

Asset Management – Private Equity Advisory

Developing Investment Opportunities

We work with private equity firms and hedge funds to help with acquiring & growing businesses in insurance, banking, asset management, and other financial services industries. We collaborate with general partners in several areas:

Portfolio Expansion

We guide companies through discovering and integrating financial services companies into investment portfolios

  • Target Identification & Strategic Opportunity Assessment
    Pinpointing under-valued market segments and companies with strategic potential for value realization
  • Business Due Diligence
    Harnessing deep financial services knowledge to understand business fundamentals and the viability of potential venture & buyout investments
  • Strategic Combination Analysis
    Driving value-boosting synergies between portfolio companies & strategic partners, as well as managing the integration process

Turnaround Management

We diagnose inefficiencies and generate strategies to enhance portfolio company performance

  • Revenue Enhancement Opportunities
    Analyzing, reengineering, and optimizing current operations to ensure no revenue is lost to inefficiencies
  • Portfolio Company Business Strategy
    Leveraging deep experience to position the portfolio company for maximum value generation
  • Process Analysis and Optimization
    Targeting complementary, untapped value streams (e.g. redesign of products & services for competitive sustainability)
  • Technology Enhancement
    Upgrading front-, middle-, & back-office systems and infrastructure to boost profitability

Market & Channel Extension

We provide analysis and roadmaps to promote growth and ensure portfolio value creation

  • Sales Force & Channel Effectiveness
    Targeting and resolving disorder in current distribution practices to ensure maximum profitability
  • Segmented Marketing & Sales Strategies
    Optimizing strategies to each specific market and customer demographic for superior ROI
  • Distribution Channel Management
    Generating a consistent customer experience across all channels to enhance revenue generation and cross-selling opportunities
  • New Distribution Channels & Markets
    Coordinate product, marketing, and servicing platforms to ensure saturation in current markets and access untapped revenue-generating opportunities

Strategies & Solutions



Comprehensive Strategies & Solutions to fit every unique need

Ask, and we will deliver

As a specialist consultancy, Patpatia & Associates has a singular focus on financial services businesses. As a result, we can provide creative, well-defined, and customized solutions for any challenge our clients present to us.

We do what it takes to drive your business forward

Patpatia & Associates has a broad spectrum of services to fulfill clients’ needs, from strategic business planning, through the implementation of focused solutions for all aspects of financial services operations.

We provide consulting services across all financial services business lines, that help our clients improve their performance and achieve their business objectives:





Growth for the present and future depends upon winning strategies

Success does not just happen. Prospering in the financial services marketplace requires extensive experience & insight to analyze the business environment and develop winning strategies that ensure competitive advantage. Patpatia & Associates approaches each strategic challenge with a fresh market-focused perspective, and strives to push our clients above their competitors and on to higher returns.

Our strategies are defined by:

  • True Performance Improvement
    The clear mission for each of our strategies is a quantifiable gain in performance, generated through increased revenues & margins, efficiencies, and/or process effectiveness
  • A Vision for the Future
    Identifying global business trends & forces and anticipating future challenges are key to building the groundwork for a strategy that supports sustainable growth and advantage
  • Deep Market Understanding
    All of our strategies are oriented at best capitalizing on underserved market opportunities to unlock new sources of value
  • Practical Implementation
    Having a plan is not enough, we ensure our strategies can be implemented for tangible growth across an organization
Marketing, Sales, & Product Management


Marketing, Sales, & Product Management

Marketing, Sales, & Product Management

Step one is effectively reaching your customers

Reaching customers in a compelling and efficient manner is core to growth in any business. Patpatia & Associates has a wide range of capabilities to helping our clients attract their customers, close more sales, improve client retention, and tangibly contribute to the bottom line. Our capabilities include:

  • Market Opportunity Assessment
    We assess opportunities in both current and potential new markets to ensure our clients access all potential sources of revenue
  • Brand Strategy
    We formulate impactful branding strategies that connect our clients to potential customers and provide built-in credibility
  • Distribution Channel Management
    We ensure our clients have optimal business practices & sales models in current channels, and also maximize reach by implementing and coordinating distribution growth strategies via creation of multi-channel approaches and sales management disciplines
  • Product Design & Pricing
    We help clients build innovative, customer-focused, profitable products with an aim towards satisfying consumer demand and generating sustainable revenues
  • Go-to-Market Strategy
    We create go-to-market strategies optimized for each target market segment that seamlessly guide customers through the purchasing process to fulfillment
Operations & Organization


Operations & Organization

Operations & Organization

Aligning processes & people keep your business running effectively

Efficient internal operations and leadership are key to business success. Patpatia & Associates works with clients to ensure they are optimally organized for stability & efficiency, as well as long-term growth. Solutions & services that we provide include:

  • Organization Design
    Creation of effective front-, middle-, and back-office organizations focused around generation of value, taking into account short- & long-term goals
  • Change Management
    Development of clear plans to guide companies and employees through transformational changes
  • M&A and Strategic Alliances
    Identification, due diligence, & execution of strategic opportunities to create and capitalize upon business synergies and build market leading platforms & organizations
  • Risk Management/Compliance Strategies
    Disciplined, uniformly implemented business processes as well as strategic deployment of process automation to control risk
  • Leadership & Talent
    Implementation of programs to improve leadership excellence (e.g. incentive programs) and talent pipelines to encourage promising employees
Technology & Infrastructure


Technology & Infrastructure

Technology & Infrastructure

Tech & infrastructure are the framework of operational efficiency

Effective technologies & infrastructure should contribute tangibly to the bottom line. Patpatia & Associates works with businesses across the financial services and directly with technology purveyors to provide for a range of systems-related needs . Technology & infrastructure services that we provide include:

  • Service Delivery/Infrastructure Design
    Strategic design of the technology platforms required to efficiently capitalize on business opportunities, including assessment of core business components & workflow reengineering across the front-, middle-, and back-office
  • Technology Platform Solutions
    Design of front & back-office solutions, from business requirements through oversight of deployment resources, integrating new technologies to empower producers and enhance operational processes
  • Performance Improvement
    Assessment of current IT performance and implementation of strategies to better efficiency & effectiveness
  • Vendor Selection
    Analysis of potential external technology & service vendors and selection of best-of-breed systems to integrate into clients’ internal processes
Customer Experience


Customer Experience

Customer Experience

Turn a transaction into a relationship-building experience

Current business dynamics are shifting an increasing amount of power onto the consumer. The financial services in particular depend upon the quality of the relationship between advisors, agents, or direct to consumer platforms and their clients to drive growth. Patpatia & Associates has marked success with helping clients build exceptional customer experiences. Services & solutions that we provide include:

  • Omni-Channel Customer Experiences
    We bring the best of both advised & digital digital customer experiences, from branding through servicing, to keep our clients at the forefront of the new technology focused, self-directed, & on demand consumer marketplace
  • Customer Lifecycle Management
    We analyze each step of consumer process to ensure optimal consumer satisfaction and increase loyalty, as well as opportunities for cross-selling and upselling
  • Front-Line Enhancement
    We design programs to directly help advisors & field management offer improved customer experiences & build stronger relationships through a range of strategies & programs (e.g. training, incentives)
New: Insurance Asset Management Market Dynamics 2014 – Market Summary


New: Insurance Asset Management Market Dynamics 2014 – Market Summary

New: Insurance Asset Management Market Dynamics 2014 – Market Summary

Learn about emerging trends in the insurance asset management marketplace in a new white paper based on key findings from Patpatia & Associates’ 2014 Insurance Asset Manager Survey. Topics include:

  • Unique challenges facing the insurance industry
  • Insurers’ evolving investment approach in response to the prolonged low-yield environment
  • Insurance company investment outsourcing tendencies by size segment and business line
  • Implications and opportunities for asset managers seeking to navigate an increasingly diverse marketplace

Click here to access this white paper.

Research & Whitepapers


Research & Whitepapers

Research & Whitepapers

Insights – Research & Whitepapers

Insurance Asset Management Market Dynamics 2014: Market Summary

Learn about emerging trends in the insurance asset management marketplace, as well as their implications for insurance companies and asset managers, in this white paper based on key findings from Patpatia & Associates’ 2014 Insurance Asset Manager Report.

2014 Insurance Asset Manager Report (in progress)

Contact us to learn more about our biennial survey, including information on how to participate.

2013-2014 Insurance Company Analysis Report

See a sample of our 2013-2014 Insurance Company Analysis Report (ICAR), which includes in-depth business and investment information for 250 of the largest insurance companies in the United States. Please contact us at patpatia@patpatia.com for more detail on the full report.

Reeingineering the Client Experience for Improved Asset Gathering

Learn how leading financial institutions, from brokerages to banks and insurance companies, are remaking themselves as customer-centric purveyors through enhanced communications strategies, channel development, planning-based client engagement, total wealth solutions, and innovative wealth technologies.

Wealth Management Fixed Income Study

Learn more about the July 2013 study conducted by Patpatia & Associates which analyzes the fixed income marketing, pricing, and support practices of wealth management channels.

2012 Insurance Asset Management Market Dynamics

Review the latest installment of Patpatia & Associates’ analysis of the asset management practices of U.S. insurance companies and the money management firms that serve them, which was conducted in conjunction with Thomson Reuters. The study includes an evaluation of insurance company investment trends, as well as profiles of the varied managers targeting the insurance industry.

European Insurance-Driven Investments

Learn about the expanding market of insurance assets in Europe, with profiles detailing the leading insurance asset managers. The study includes insurance’s role in Europe’s wealth markets and insurer’s investment practice.

Advice-Embedded Solutions

Find out how a broad array of wealth managers are deploying new liability-driven managed money platforms, including retirement income vehicles.

Liability-Driven Investments – Investment Strategy & Benchmarking

Learn about the market leading approaches to risk-managed investment strategy and benchmarking, as firms increasingly need to formalize their investment policies, enhance risk management, and improve business line and corporate profitability.

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About Working at Patpatia & Associates

Patpatia & Associates has an entrepreneurial and fast-paced environment that offers an outstanding opportunity for professional and personal growth. Our staff is comprised of some of the best and brightest people in the industry.

Patpatia & Associates recruits entry-level business analysts, senior associates, and interns to join our team. Qualities of successful candidates include: creativity, a strong work ethic, tenacity, self-confidence, an ability to work in an unstructured environment, and a strong interest in the financial services industry. Candidates should be self-motivated and have a demonstrated ability to work independently in a proactive manner. College degree required (except for interns with talent).

Please submit your resume and cover letter as an attachment using the form below (Word or PDF file).
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