Group Health Cooperative Selects Clearwater Analytics

17-Feb-2011

BOISE, ID – FEBRUARY 17, 2011 - Group Health Cooperative, a consumer-governed, nonprofit health care system that coordinates care and coverage, has selected Clearwater Analytics to provide daily-reconciled accounting, compliance, performance and risk reporting and analytics on $1 billion in assets for the company's investment portfolio. In addition, Clearwater will provide Group Health with a full suite of Statutory and NAIC filings for period-end reports.

Founded in 1947 and based in Seattle, Washington, Group Health and its subsidiary health carriers, Group Health Options, Inc. and KPS Health Plans, serve more than 600,000 residents of Washington and Idaho.

Group Health recently employed Clearwater's outsourced solution in order to automate investment accounting and regulatory reporting. Bret Myers, Assistant Treasurer for Group Health, cited a trend indicating that insurers are moving away from cumbersome, manual process to more agile, powerful, outsourced models for their investment reporting. "At many insurance companies, investment management has historically been treated as an afterthought," said Myers. "It has not had as much focus in the past as a way of augmenting the bottom line, but rather was kind of a complement to core operating results."

"In the past few years there has been an awakening among senior management and boards at insurance companies in the way that they view investment portfolios," Myers noted. "In 2008, with the near-collapse of the financial markets, suddenly there was a need to be able to report on a real-time basis what was going on with investment securities. At Group Health, we wanted to be sure that we would never be caught unaware of our risk concentrations, while also having access to actionable data, compliant with our investment policies. These criteria drove us towards Clearwater and the results have allowed us to operate with a level of immediacy and transparency that was previously not possible."

Clearwater Analytics CEO Courtlandt Gates sees significant interest among Treasurers and Chief Investment Officers in tools that help them monitor compliance, measure performance and understand the risks of their portfolios. "Where there are multiple portfolios, aggregating the holdings, verifying their accuracy and consistency, and extracting actionable information from them represents a significant effort operationally. Providing this type of investment portfolio reporting and analytics to institutional investors, including insurers, is core to Clearwater's offering," said Gates. "We are excited about our partnership with Group Health. Their recognition of our system's capabilities and the value it adds to them operationally serves as a tremendous endorsement for Clearwater."

Clearwater Analytics offers the following core system functionality:

  • Aggregation and reconciliation of information from multiple data sources
  • Daily accounting, compliance, performance and risk reporting and analytics
  • Dedicated account managers support Clearwater's 100% hosted SaaS system
  • No installed software or maintenance and no additional IT resources
  • Daily compliance monitoring and automated notification of violations

Insurers also benefit from Clearwater's insurance-specific reporting functionality, including:

  • GAAP and Statutory Impairment capability
  • Financial Statement Disclosures (i.e. Fair Value Measurement and Impairment)
  • Statutory and Schedule D Reports
  • Authorized third-party NAIC valuation and pricing administrator