Finastra has expanded its Fusion Invest platform with new functionality designed to meet the complex needs of annuities carriers.
The enhancements introduce automation of dynamic hedging for annuity contracts, a move aimed at boosting transparency, improving compliance oversight, and strengthening operational efficiency for both risk managers and trading teams.
By consolidating portfolio management processes into a single platform, Fusion Invest streamlines tasks that were previously reliant on manual input. This automation reduces errors and allows carriers to more efficiently monitor collateral positions, valuations and movements. The updated system also supports compliance with evolving regulatory frameworks such as Swift ISO 20022, while optimising collateral management workflows to cut operational costs.
Julie Barthés, Finastra vice president of product for its treasury and capital markets business unit, said, “The current economic climate and state of the retirement nest egg has driven life and annuity carriers to develop a wider range of investment options, including registered index-linked annuities (RILAs). Since RILAs are considered both an insurance product as well as a security, carriers must comply with regulations set by both FINRA and the Securities Exchange Commission. The added complexity makes the right hedging and processing platform essential.
“This latest innovation in Fusion Invest covers the full scope of the annuity lifecycle, enabling annuity carriers to seamlessly coordinate front, middle and back-office functions, from trade decisioning, hedging and risk monitoring to collateral management, operations and hedge accounting.”
The upgraded solution is also capable of managing the entire trading process more efficiently. It automates tasks ranging from trade order creation to compliance checks, reducing the time needed to execute trades. By using real-time market data and scenario modelling, Fusion Invest identifies opportunities to maximise returns while respecting product-specific limits such as participation rates, caps and crediting methods.
Commenting on the release, Finastra EVP of treasury and capital markets business unit Wissam Khoury said, “Fusion Invest offers enhanced portfolio management business agility that in turn drives significant value by optimizing revenue growth potential and streamlining operational efficiency. The ability to bring it into this new market speaks volumes about the flexibility and strength of our technology.”
The platform is built on proven technology and supports annuity carriers looking to transition to cloud-based infrastructure. By leveraging advanced IT capabilities and connectivity, the solution enables scalability and adaptability to market conditions, while reducing operational risks.
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