This FAQ will focus on answering questions on TAI Annuity. If you are attending the 2018 TAI User Group, be sure to sign up for Breakout #2 – How to Process Annuity Reinsurance with Ease on TAI. I will be providing a more detailed look at the system and Jacqueline Barrett, Director of Reinsurance Operations of LOGiQ³, will share her team’s experience during a TAI Annuity implementation.
What is TAI Annuity?
- TAI Annuity offers insurers the ability to process annuity products
Is TAI Annuity an add-on to TAI .NET?
- TAI Annuity is available as a stand-alone system or as an enhancement to the TAI .NET Base System
What Annuity products are supported?
What fields accommodate annuity business in TAI .NET?
Database and screen changes were developed in TAI .NET to accommodate the field changes needed for storing the unique extract file fields and reinsurance administration specific fields.
Some of these include:
- LINE OF BUSINESS CODE FOR ANNUITIES has been defined to differentiate reinsurance processing and reporting from life products
- POLICY MASTER EXTRACT LAYOUT designed specifically for annuity products
- HISTORICAL CASH FLOWS displayed on transaction screens at the policy level
- POLICY MASTER SCREEN designed specifically for annuity products
- FUND TRACKING supported at the policy level
- REINSURANCE CALCULATIONS expanded to support expenses and fees related to annuity products
- DYNAMIC TREATY TERMS supported by new layer of the treaty screen
- SERIATIM LISTING, INFORCE AND TRANSACTION EDI EXTRACTS produced on a monthly basis
- ROLL FORWARD screen and report support tracking of account value changes
How are annuities processed in TAI .NET?
Annuities will be handled under a new line of business on the TAI system. Screens will show appropriate field names for annuity policies and separate inforce and transaction files will be generated for this line of business. The annuity policies will also be stored under a new Processing Company.
How many reinsurance arrangements does TAI Annuity support?
TAI Annuity supports multiple agreements being active at one time. Each reinsurer may choose to cover different products in varying distribution channels and may be assuming varying percentages of the policies.
How does the administrative system interface?
The TAI system will be provided a regular transaction extract, in a pre-defined format. The extract will include all cash flows that impact reinsurance and the account values. The TAI system will determine new contracts and correctly assign reinsurance arrangements. The transactions, including premium payments, partial withdrawals, contract surrenders and death terminations, will be used to define reinsurance liability cash flows and settlements for each reinsurer.
What does the reinsurance reporting include for TAI Annuity?
The TAI system provides monthly transactions, summaries and detailed reporting for each annuity contract and reinsurer. Billing statements will be produced by the system to support the annuity products.