Standard Life removes inflexible legacy systems to comply with FSA regulation

Insurer Standard Life has replaced legacy systems with up-to-date software applications as part of its compliance with the latest Financial Services Authority...

Insurer Standard Life has replaced legacy systems with up-to-date software applications as part of its compliance with the latest Financial Services Authority regulations.

The project will allow Standard Life to comply with the Treating Customers Fairly regulation which requires insurers to offer customers the best policy available at the time of the deal.

Jan Roxburgh, head of distribution finance at standard Life, said the insurer embarked on a project to make information on all sales easily accessible to managers three years ago.

"First of all we spent two years building an Oracle datawarehouse because we needed a starting point of accurate data."

Standard Life linked the datawarehouse to software from Cognos, which retrieves information and presents it to managers.

This year the firm linked the datawarehouse to software from Callidus to meet the TCF requirements by making the sales process more visible.

The software replaces a system installed in the 1970s, known as QU, which was used to calculate how much commission to pay to salespeople.

"It was a good system in the 1970s but most of the experts in using the system have moved on and it was difficult to upgrade," said Roxburgh. "The IT staff were not confident they could support the system."

The FSA said that the regulator has given ample advice on how firms can comply with TCF and will now seek evidence that they are following this guidance.

"From December they will have to prove they comply with TCF," she said.

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