Non-Bureau Accounting Workshop slides

Report
Workshop Programme
2013 Non Bureau Accounting Workshop
Workshop Programme
Wednesday 17th July at the ACORD office
Welcome and Progress Update
This event is aimed at brokers and carriers that are
not yet engaged in the Non-Bureau accounting
project. It will outline the progress and benefits
achieved to date, including the implementation
experiences of JLT and AIG as the latest London
Market firms to go live.
The Implementation Experience
You will also hear how the established benefits of
easier account reconciliation, faster resolution of
fewer queries, elimination of unallocated cash and
significantly faster settlement cycles are now being
extended to outwards reinsurance and coinsurance
business directly between carriers.
There will also be updates on TMEL’s engagement
with the initiative, international progress and vendor
progress in electronic accounts processing.
Simon Squires XL
Chair LMG NBWG
For the broker
Charles Brown JLT
For the insurer
Kate Roy AIG
Outwards Reinsurance Opportunities
Mark Chapman
Global Aerospace
Co-insurance Developments
Heather Griffiths
XL
The Message Exchange (TMEL)
Shirine Khouty-Haq
Catlin, Chair TMEL
International Progress
Mark Barwick
ACORD
NetSett Progress Update
Graham Card
Xchanging
Closing Remarks
Simon Squires XL
1
Non-Bureau Accounting Workshop
Welcome and Progress Update
Simon Squires
2
NON BUREAU WORKING GROUP
Laying the Foundations
Working Together to Deliver Progress
Validation/Build-Out
2011
2012
Scope/Volume Expansion
2013
2014
Leading Edge Processes
2015
Simon SquiresRuschlikon & eAccounting
Standard
Market Operations
www.ruschlikon.com
Simon Squires
Chairman
17/07/2013
NON BUREAU WORKING GROUP – WORKING TOGETHER
•
•
•
•
•
Established by the key market bodies to progress modernisation
Improving administration on a non-competitive basis
Key objectives: improved client service/industry efficiency
Think tank for process modernisation & improvement
Successful and seen as role model for its implementation track record
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Who are the key participants
Founding Members
Early Adopters
Planning Implementation
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
NON BUREAU WORKING GROUP – ROCK SOLID BUSINESS CASE
• Working on a process improvement model
• Based on reliable and robust technology
• Very strong and tangible business benefit case
• Building a repeatable implementation model
• Sharing experiences, using learning for the benefit of the community
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
NON BUREAU WORKING GROUP
CLIENT SERVICE IMPROVEMENTS
LEADING EDGE PRACTICES
IMPROVED CONTROL
ENVIRONMENT
100
TEAM FOCUS
120
80
140
40
180
20
200
0
220
OPERATIONS
PEOPLE
FINANCE
1
• No Unallocated Cash
• Better Audit Trails
• Standard & Reliable
Technology
Simon SquiresRuschlikon & eAccounting
2
• Improved Receipt &
Payment Timelines
• Operational Efficiency
• Leading Edge Practices
www.ruschlikon.com
3
• Reduction in Nonexceptional Data processes
• Logical Design
• Morale Improvements
NON BUREAU WORKING GROUP - PROCESS EXCELLENCE & IMPROVING CLIENT SERVICE
• Starting with a new & refreshing approach
• Using business logic/efficiency as the building blocks
• Sharing common problems to address market issues
• Using process & technology to build solutions
• Working together with partners where this adds value
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
CURRENT STATE PROCESSING WITHOUT MESSAGING
Paper / E-mail Closings
Manual Statements
Delayed Payments
- Incomplete documents
- Non standard formats
- No ackowledgement of
receipt required
-Time consuming spreadsheet
process
- Lengthy agreement
timecycle
- Large query volumes
- Inconsistent due dates
- Timeline driven by
reconciliation
- No agreement of items
payable
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
The Ruschlikon Process
Sender
Create
TA / CM
Create
FA
Send
TA / CM
Message
Receive
L4 ACKN
Receive
L4 ACKN
Send FA
Message
Receiver
<5 Days>
Receive
TA / CM
Message
<3 Days>
Investigate
and Resolve
Investigate
and Resolve
Query
TA / CM
Message
Reject FA
Message
Receive FA
Message
<10 Days>
Accept
TA / CM
Message
Accept TA
Message
Note: For every CM there is a corresponding TA
Simon SquiresRuschlikon & eAccounting
<3 Days>
www.ruschlikon.com
Settlement
Providing Best Practices
Global (Re)insurance Best Practices – Accounting, Claims & Settlement
Message Standards, flows and interactions
Workflow timing recommendation
Document Exchange Standards
Recommended implementation steps
Minimum connectivity requirements
Target Performance Standards
Continuous improvement of processing time
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
TA/FA Concept - Insurance Message Expansion
INSURER
B
R
O
K
E
R
S
CO INSURER
ASSUMED
REINSURER
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
B
R
O
K
E
R
S
R
E
I
N
S
U
R
E
R
NON BUREAU WORKING GROUP - GLOBAL SPRINGBOARD
• International organisations form core of NBWG
• London processes designed to work on a global basis
• Participants actively working on improving global reach
• Extended global processing model part of the design
• Focus on data standards and one process in every location
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Organizational Setup
Global Implementations
„Ruschlikon“ Communities
• Ruschlikon Global Members
• Bermuda Ruschlikon
Steering Group
• London Non Bureau Group
• North American E-Business
Committee
• Ruschlikon Asia-Pacific
• Ruschlikon Australasia
-
-
-
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Foster the Ruschlikon
approach in a local
environment
Feed local requirements into
Ruschlikon / ACORD
standards
Community Chairs participate
in the Ruschlikon Steering
Group
Non-Bureau Accounting Workshop
The Broker Implementation Experience
Charles Brown
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
15
Non Bureaux Working Party
th
Workshop 17 July 2013
JLT London Market
‘The Implementation Experience’
Our Approach
Non Integrated Solution
Less Risk/Lower Cost
No Change to our Core Applications
An Insurer Already Live
Premiums Only
Project Milestones
Project Brief
October 2012
Develop/Build &
Test
April to June 2013
Live
8th July 2013
November 2012
Joint Workshop
with ACE/XL
November 2012
Gateway Provider
March 2013
Functional Design
February 2013
PID
Business Process Implications
No impact on
our
technicians
and IBA staff
New reports to
interrogate our
systems for TA
and FA
2
Administrators
to manage the
process
Agreed
balances
settled as we
do today
Lessons Learned
Agreeing
business
scope and
account
mapping
ACORD
Standards –
be clear on
how each side
interpret
them
Early
engagement
of gateway
providers
UAT took
longer than
expected
Conclusion
A short term solution
which limits the number
of insurer partners
Reliance on
manual steps to
manage the
EBOT process
Our next
implementation
should be easier XL
We can now plan
an integrated
solution
Non-Bureau Accounting Workshop
The Insurer Implementation Experience
Kate Roy
22
Non Bureau eAccounting – AIG UK
Experience
Kate Roy - Head of UK Operations
AIG Property Casualty
The AIG UK Experience
Where are we today
•
Went live with Willis on 17th June 2013 following 16 months of planning – Aon go-live
scheduled for Q4 2013
•
Processed over 130 TA’s in the first 4 weeks
•
Opted for a non-integrated MMT solution with the primary focus around improving the
business process and associated behaviours
Next Steps
•
Expand eBOT use to more of our London broking partners
•
Continue to develop and focus on Co-insurance message standards and processes
•
Extend the book scope with our existing broking partners
Implementation has allowed AIG to:
• Capitalise on message gateway investment
• Deliver speedier payment settlement to increase available investment capital
• Facilitate improvement of ‘Right First Time’ processing through earlier sight of enriched
electronic closing data to assist timely reconciliation
• Further cement relations between our broking partners by working collaboratively
throughout the implementation and in the months that follow
• Establish a common standard from which to expand cross geographies and leverage
wider benefit realisation
24
Do's and Don'ts from an AIG Perspective
•
DO utilise market material to gain
understanding of benefit potential
and lessons learnt
•
DO commit time at the start to
agree the overall scope
•
DO work collaboratively with
partners to understand the ‘As Is’ &
shape the ‘To Be’
•
DO capitalise on the opportunity to
drive through process efficiencies
and embed continuous
improvement
•
DON’T underestimate the time
required to map the Broker and
Carrier accounting universe
•
DON’T consider this to be a
technology initiative, technology is
the enabler, not the driver
•
DON’T get bogged down in the
terminology – adopt common
sense language to aid buy-in
25
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial,
institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance
and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. Products and services are written or
provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy
language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty
coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
Non-Bureau Accounting Workshop
The Insurer Implementation Experience
Mark Chapman
27
Cedent Outward
London Non-Bureau Working Group
Mark Chapman
Group CIO
17 July 2013
What are we doing?
• A pilot – small investment – no business case required!
• Major continental reinsurer
• US Proportional Treaty
• Replacing quarterly statements (PDF) with Technical
Account messages for reinsurance cessions and
recoveries
• 31 TAs per quarter
Benefits
• Eliminates rekeying for our reinsurer
• Reduces technical queries for us
• But no improvement in speed of settlement yet
The Challenges
• Mapping our ledgers to the eBOT structure
• Started with simple transaction types then increased
complexity
• Multi-currency
• Build knowledge and trust in eBOT process
The Future
Expand pilot to include:
• TA acknowledgements and FAs
• Fac and X/L
• Non-US contracts
• Other reinsurers – especially ones who are slower payers!
Benefits
• Introduces a controlled process – with line by line
acknowledgement of items on a statement
• Reduces age of debt
• Fewer technical queries
• Eliminates partial payments
Non-Bureau Accounting Workshop
Co-Insurance Developments
Heather Griffiths
32
Co-Insurance
e-Accounting:
Faster, Better, More Accurate
Building on the success of the London Market
Proven case benefits experienced by adopters in the London Market
•
Statements replaced with ACORD standard structured data messages. Effectively eliminating manual documents
•
Enhance service, improve speed, quality and integrity of critical information
•
Reduce costs through back-office data integration and process automation
•
Speed of settlement: Premiums by 30% and Claims by 40%
•
Ensure operational excellence by agreeing rules and protocols to deliver business benefits
•
2.5 million messages expected to be transacted in 2013
Next Step :To enable direct ‘Insurer to Insurer’ messaging
•
In the UK the Broker is responsible for paying the Insurer Market.
This model is successfully operating in the UK between Brokers and Insurers
•
In Europe it is generally the Lead Insurer who is responsible for paying the follow Insurer market
The current messaging model needs to be extended to allow Insurers to directly message with other Insurers
•
Working in partnership with ACORD
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Extending the TA/FA Concept to Insurer Message Expansion
•
INSURER
B
R
O
K
E
R
S
LEAD INSURER
Simon SquiresRuschlikon & eAccounting
• Next steps :
Implementation of e-Accounting
directly between Insurers
•
FOLLOW
CO-INSURER
Proven Case benefit
between Broker and Insurer
Co-Insurance
Enabling Lead Insurers in Europe to
message directly with follow Insurers in
real time
www.ruschlikon.com
UK e-Accounting Broker & Co-Insurance Model
Insured
Pays the Broker
I
BROKER
Responsible for paying
the Insurer Market
Lead Insurer
(60% share)
Simon SquiresRuschlikon & eAccounting
Follow Insurer A
(20% share)
www.ruschlikon.com
Follow Insurer B
(15% share)
Follow Insurer C
(5%Share)
European Market Co-Insurance Model
TA: Lead Insurer receives TA
FA : Broker sends FA to Lead
Insurer 24 hrs after booking
payment . Lead sends FA to
Co-insurers 24 hrs later.
message 24 hrs after Broker
Booking is completed. Coinsurers message is sent 24Hrs
later
Insured
Pays the Broker
Follow Insurer A (20% share)
Follow Insurer B (15% share)
BROKER
Pays the Lead Insurer
LEAD INSURER –
Receives 100%
Pays the Follow Market
Follow Insurer C (5% share)
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
EUROPEAN CO-INSURANCE
CURRENT STATE PROCESSING WITHOUT MESSAGING
Large Bordereau statements
Manual BXD reconcilition
•Little or no entry validation
Paper
/ E-mail
Closings
proir
to BXD
receipt
or payment
- Incompletedata
documents
•Inconsistant
formats
- Non standard
formats
received
from Market
Insurers
- No ackowledgement
•Little
or no consistant of
receipt required
supporting
documentation
attached to support entries
processed
•
Simon SquiresRuschlikon & eAccounting
•
•
•
Time consuming
spreadsheet reconciliation
Large query volumes &
unallocated cash
Inconsistant or no valid
reference numbers
Claims deducted without
prior agreement
www.ruschlikon.com
Delayed Payments
• Driven by Lead Insurers
current systems to produce
statement/BXD
• Impacted by Lead Insurer
payment terms, and delayed
by statement cycles –
monthly, quarterly, or half
yearly
FUTURE STATE PROCESSING WITH MESSAGING
Transaction validation
Electronic Reconciliation
Faster Cashflow
- Tech account (TA) message
sent early, as soon as the
broker books the item
- Standard data format
- Complete/accurate dataset
- Real time agreement
- Technical/payment
transaction linked
- Team can focus on queried/
unpaid items.
- Early query resolution
- Items can be up six weeks
earlier
- No backlogs - can focus on
key items
- Financial account (FA) sent
as soon as payable
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Sample CoInsurer Invoice
Lead Insurer Policy
Reference
Premium
Co-Insurer Share
Lead Office Commission
Taxes
Total Due
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Spreadsheet for Invoice
Total
Due
Taxes
Smith Inc.
Territories Payable in EUR:
Country
Policy Number
Total Due
PD Values Local
BI Values Local
PD Premium
BI Premium
Gross
Currency
Currency
Local
Local
Premium in
Currency
Currency
Local
Tax in Local Total in Local
Currency
Currency
ABC 20%
ABC 20%
RI
Net due to
Premium
share of
Commission
ABC
Taxes
, 5% Master,
Currency
France
GB00024891PR13A
£171,931.68
171,555,850.00
122,902,800.00
107,306.80
76,874.71
184,181.50
7.5% FOS.
13,539.93
197,721.43
Premium
Lead Insurer Policy
Reference
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
36,836.30
2,707.99
2,762.72
36,781.56
Lead Office
Commission
Co-Insurance TA in BOMMT
Expanded View
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Co-Insurance TA in BOMMT Detail view
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Next Steps / Challenges
•
Document detailed process maps/ workflow for each European Country
for co-insurance and assumed reinsurance
•
Capture model variations by Territory
- France: BCR (French Co-insurance clearing house)
- Spain: Lead Insurer issues invoices & statements to Broker in Spain
- Lead Insurers in some territories have delegated claims authority (certain value)
- Tax regulations per Territory
•
XL and ACE to start pilot/testing in London
•
Engage with Brokers for European roll-out time frame plans
•
Liaise with Message Management Platform providers to up load mainframe system data
and turn into ACORD standard messages / manage ACORD messaging and traditional
accounting method splits between Lead and follow insurers
•
Work with ACORD BIG (Business Implementation Group) to update messages
Up date Ruschlikon Best Practice Guide
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
QUESTION AND ANSWER SESSION
Simon SquiresRuschlikon & eAccounting
www.ruschlikon.com
Non-Bureau Accounting Workshop
The Message Exchange (TMEL)
Shirine Khoury-Haq
46
TMEL
(The Message Exchange Limited)
About The Message Exchange Limited
• The Message Exchange Limited (TMEL) is a company limited by guarantee.
• The three Market Associations – International Underwriting Association (IUA); London and International Insurance
Brokers’ Association (LIIBA); and Lloyd’s Market Association (LMA) – and the Society of Lloyd’s are equal
participants in TMEL.
• TMEL owns and operates the Exchange – the messaging hub that supports the sending and receiving of ACORD
standard data messages between counterparties in the London insurance market.
TMEL Vision
• To manage the provision of the Exchange service to meet the operational requirements of its customers and the
ambitions of its members in accordance with the articles of association.
TMEL Mission
• To provide a trusted electronic messaging hub to the insurance market by ensuring a seamless, reliable and
uninterrupted messaging service to the insurance market.
• A cost effective method of facilitating the exchange of data between insurance business partners.
• A trusted utility service that boosts insurance market competitiveness.
Governance
TMEL Board
Shrine Khoury-Haq (Catlin - IUA & Chair)
Kirk Maddern (Liberty Synd - LMA)
Robert Humphreys (Lloyd’s)
Simon Gaffney (Willis - LIIBA)
Chris Croft (Secretary)
Technical Subcommittee
Finance and Compliance
Subcommittee
Operations Subcommittee
Simon Gaffney (Willis – LIIBA & Chair)
David Heard (AIG - IUA)
Richard Hayes (Ascot - LMA)
James Bobbitt (TMEL)
Chris Croft (Secretary)
Robert Humphreys (Lloyd’s & Chair)
David Hough (LIIBA)
John Hobbs (IUA)
Pat Hakong (LMA)
Chris Croft (Secretary)
Kirk Maddern (Liberty Synd - LMA & Chair)
David Salvage (Aon - LIIBA)
Rob Gillies (LMA)
James Bobbitt (TMEL)
John Hobbs (IUA)
Chris Croft (Secretary)
Operations Team (Lloyd’s)
James Bobbitt – Operations Manager
Nav Sarao – Technical Analyst
IBM Support team
James Bullock – Service Manager
TBA – Team Lead
Debi Samal – Technical Analyst
David Mallenby – Architect
Jacky Connacher – Delivery Manager
Single point of connection, connecting to all trading partners
P2P Connections
Carrier A
Exchange Connections
Carrier B
Carrier A
Carrier B
Broker A
Carrier C
Broker A
Carrier C
Broker B
Carrier D
Broker B
Carrier D
Broker C
Carrier E
Broker C
Broker D
Carrier F
Broker D
Carrier F
Broker E
Carrier G
Broker E
Carrier G
The
Message
Exchange
Carrier E
Carrier H
Carrier H
Carrier I
Carrier I
What does it do?
Claims
Broker
Placing &
Endorsements
XML
XML
Accounting &
Settlement
Reporting,
Bordereau etc.
XML
XML
Carrier
Who's CONNECTED ?
• 38 Brokers, 34 IUA companies and all Lloyd’s managing Agencies (for placing / endorsements)
EBOT Connections ……..
Exchange Volumes
EBOT Message Volumes June 2012 - 2013
2000
EBOT
1800
1600
1400
1200
1000
800
600
400
200
0
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Exchange Volumes
Placing / Endorsement Volumes June 2012 - June 2013
25000
Placing/Endt
20000
15000
10000
5000
0
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Exchange Volumes
Fig1. The graph below compares the monthly year on year total volumes processed via the Exchange. (Excluding Support)
25,000
2012
2013
20,000
15,000
10,000
5,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Funding
•
The Exchange is currently funded centrally by the IUA and Lloyd’s
Costs – Association Members & Related Entities
• IUA , LIIBA and LMA members are eligible to use the message Exchange at no cost.
• International parent or group companies of Association members are eligible to use the Exchange at no cost (subject
to a reasonable usage policy).
Costs – Non-Association members
• Non-association members (brokers and insurers) are required to pay a one-off connection fee of £10,000 (excl VAT)
• Non-association member insurers are required to pay an annual charge of £20,000 (excl VAT)
• Use of The Exchange by non-association members is subject to a reasonable usage policy.
Looking forward…….
• Securing a new contract for the on-going provision of
service (from May 2014)
• Modern scalable infrastructure
• Service based contract
• Reduced costs
• Agreement for on-going commitment to funding from
IUA and Lloyd’s
• Maintain operational excellence
• Support demand for increasing message volumes
and new message types
Non-Bureau Accounting Workshop
International Progress
Mark Barwick
58
Accounting, Claims & Settlement
Six communities, one global standard
Ruschlikon Steering Group
Participants – Aon, Axis Capital, Catlin, Guy Carpenter, Munich Re,
SCOR, Swiss Re, Willis, XL Insurance, XL Re
Responsible for
Chairman of each of the Regional Implementation Groups invited to
attend
Currently promoting implementation in mainland Europe
Ruschlikon ACORD European Summit held in Paris on 4th June
Follow up webinar planned for 24th July
Further meeting provisionally arranged for Friday 11th October in Zurich
Event aimed at ceding firms in the USA planned for the ACORD
Implementation Forum in October in Boston
60
Ruschlikon Bermuda
Participants – Amlin, Aon Benfield , Arch Re, AXIS, Catlin, Flagstone Re, Guy
Carpenter, Hiscox, Lancashire, Montpelier Re, Partner Re, Platinum Re, Tokio
Millennium, Validus Re, Willis and XL Re.
Group established in Q3 2011, meets 4 times per annum
Implementations already in place with Platinum Re, XL Re, Amlin, Validus, Aon,
Guy Carpenter and Willis
Most organisations have Gateways as a consequence of London projects such as
E-endorsements.
Eurobase and Swiss Re demonstrated their integrated underwriting systems at
the November 2012 meeting
The group agreed that 2013 is the year for implementations. The goal is to have
at least three new implementers, with others to follow pilots or commitments to
business cases.
Advocacy session held at the Insurance Day Bermuda Reinsurance Summit in
June 2013
Further implementation and marketing event planned for November 2013
61
North American GRLC eBusiness Committee
Group consists of Aon Benfield, Guy Carpenter, Willis, Chartis, Munich
Re, Swiss Re, Partner Re, Travelers and XL Re
The group set the goals for 2013 which includes;
The distribution of a survey to ascertain what issues/pain-points companies
have. The group hopes results will help shape the advocacy discussion.
Webinars to promote the business value/ processing efficiencies of eBot, eCot,
Bordereau and Catastrophe Reporting usage.
Continue face-to-face meetings with potential eBusiness trading partners
Look-into the use of the messages for retrocessions
Work with ACORD in making the N.A. committee website consistent with the
Ruschlikon website and in the future GRLC communities websites should be
made consistent in look and generic content
62
Ruschlikon APac
Consists of Aon, SCOR, Willis, XL Re, Asia Capital Re, XL Insurance,
AIG, GIC, Guy Carpenter, MNRB
Chairman is Andre Tesnar from Swiss Re
2nd meeting held in Singapore on 25th February 2013
Swiss Re and Aon are live in Singapore. XL Re and SCOR to follow
very soon
Puneet Bharal went out to Singapore in July to spend 2 days with
Andre Tesnar
Plan next steps
Develop marketing plan
Next meeting date to be arranged for Q3
Ruschlikon Australasia
1st meeting held in Sydney on 4th March 2013.
As of yet group still being established
Further meeting planned for Q3
ACORD Forum Australia on 13-15th November will provide an
opportunity to promote Ruschlikon
Vendor Update
Vendors are a key part of making E-accounting a success
Core broker and (re)insurer administration systems can promote
implementation by integrating their software with vendors gateways
Choice of vendors in good for brokers and insurers and promotes
competition
Ruschlikon are considering forming a Vendor Community to:
Keep vendors informed of Ruschlikon progress and message enhancements so
they can plan their product developments accordingly
To maintain the Vendor Matrix – see next slide
To provide vendors an insight into BIG and related technical work
To ensure that all members of the Ruschlikon Implementation communities
know the EBOT/ ECOT capabilities of the major vendors
Your thoughts?
Non-Bureau Accounting Workshop
NetSett Progress Update
Graham Card
66
Xchanging
Inspiring innovation
Netsett – progress update
NBWG Annual Event
17th July 2013
67
CONFIDENTIAL © Xchanging 2013, No part of this document may be circulated, quoted or reproduced without
prior approval of Xchanging.
What is Netsett?
► Netsett is a global utility that offers an automated central accounting,
financial reporting & reconciliation process alongside the net settlement of
claims and premiums between cedents, carriers and brokers.
► It can accept Acord or non-Acord messages (utilising a translation service),
can receive both TA‘s and FA‘s to reconcile, and can operate on both an
inter-company (open–market) and intra-company (internal) basis.
► It operates next to participant‘s existing systems and banking partners which
is therefore non disruptive, easy to consume and has a global reach.
► Netsett brings considerable Treasury benefits, improving cashflow, liquidity
and transactional FX visibility, cost, control and execution.
► Netsett, Xchanging’s and Deutsche Bank’s global initiative take the benefits
already achieved within the London Market Bureau into the global market.
Xchanging’s existing London Market service
Multi-lateral netting and settlement is here and has been for some time
Fully automated process
The London Market
Xchanging
Central Hub
multi-party,
multi-currency
£52.6 billion
1,119,458 transactions
processed
£7.9 billion in
cash moved
The global insurance market moves around £2 trillion of
accounting transactions between thousands of parties
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CONFIDENTIAL © Xchanging 2013, No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging.
Alignment to NBWG and e-Accounting
Progress to-date:► There has been valuable dialogue with Ruschlikon representatives to
understand net settlement process requirements
► Original proposal was to incorporate Netsett within the end-to-end process
between Sender (e.g. Broker) and Receiver (e.g. Carrier)
► Agreed Netsett should not impact existing Ruschlikon/EBOT process
► Proposed that Netsett fits existing Ruschlikon/EBOT process at a choice of
touch-points. Two options are currently being considered:
Option 1 - Dual Party Integration - receiving FA and FA L4 (Business
acceptance) from the Sender (Broker) and Receiver (Carrier) respectively
Option 2 - Single Party Integration - receiving FA and FA L4 (Business
acceptance) from the Sender (Broker).
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CONFIDENTIAL © Xchanging 2013, No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging.
Option 1 - Dual Party Integration
Option 2 - Single Party Integration
Netsett benefits for NBWG
In addition to the financial and efficiency benefits of implementing Netsett, the
proposed changes will bring further significant benefits. These include:► A standardised global, multi-currency, settlement system for Cedants,
Brokers and (Re)insurers,
► A complimentary added value service which supports the Ruschlikon Mission
Statement by reducing operational cost, enhancing Client service and
continuing the aim of automating back-office processes using ACORD GRLC
standards,
► A process compliant with both “Global (Re)insurance Best Practice” and
ACORD process and messaging standards,
► No impact on participant’s current operating systems,
► Phased implementation by allowing the adoption of the Netsett service on a
P2P basis.
► A commitment by Netsett to ongoing compatibility with the Ruschlikon
process
What Netsett can offer today and beyond
Q1 2013
Q3 2013
Release 1
Release 2
Release 3
► Supports TA
► Supports.CSV
► On-line approval
process
►Supports TA / FA
►Supports ACORD
►FX capability
►Aiming to align
with NBWG and the
Ruschlikon process
AVAILABLE NOW
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Q2 2014 (TBA)
CONFIDENTIAL © Xchanging 2013, No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging.
Next Steps
► Continued dialogue with Ruschlikon, NBWG, ACORD, Gateway providers
and Market representative bodies (ongoing)
► Proposal for cooperation with NBWG in order to “fine tune” net settlement
process requirements (TBA)
► Issue a detailed proposal for general review and comment (end Aug ’13)
► Build, test and implementation approach including pricing
► Pilot with existing Ruschlikon/NBWG participants

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