Five Japanese life insurance companies will have a common asset management administration system in place by the end of fiscal 2001, company sources said Monday.
In a bid to slash development and maintenance costs, the five companies -- Nippon Life Insurance Co., Dai-ichi Mutual Life Insurance Co., Sumitomo Life Insurance Co., Asahi Mutual Life Insurance Co. and Yasuda Mutual Life Insurance Co. -- will farm out all asset management administrative work to XNET Corp., a Tokyo-based venture business offering system management services for financial institutions.
The shared use of an XNET-developed computer system, which will keep track of securities holdings as well as payment and reception data, is a significantly cheaper alternative to each life insurer developing and maintaining their own system, the sources said.