The Depository Trust & Clearing Corporation's Insurance Services business unit has announced the second fee reduction in six months, which is projected to save customers $6 million in 2008 alone.
The fee reduction will eliminate all file fees associated with insurance products. These fees of $15 per file have been linked to the older core products, including Insurance Services’ largest-volume service, positions and valuations, along with asset pricing, commissions applications and subsequent premiums and financial activity reporting. With the end of file fees, customers will pay only per transaction costs for the services.
Leonard Schmitt, head of customer relationship management at Insurance Services, said: Depository Trust & Clearing Corporation (DTCC) at-cost business model brings real savings to our customers at a time when technology costs are a key concern for the insurance industry.
We are able to provide the reductions through a combination of disciplined focus on cost controls, productivity and collaborative development of services with our customers. As our volumes grow and generate greater economies of scale, we reassess our fees and return excess revenues to participants.