Adding value, inspiring innovation · 2013-10-20 · Capabilities • FSA authorised & Sarbanes...

Insurance

Adding value, inspiring innovation

8 November 2011

Jane Tutoki

Highlights

Capabilities

• End-to-end insurance services,

onshore and offshore

• Technology bundled with complex

business processing

Market opportunities

• Trend towards commoditisation

• Untapped global market especially US

Future direction

• Leverage UK footprint

• Add new capabilities

1 CONFIDENTIAL © Xchanging 2011, No part of this document may be circulated quoted orreproduced without prior approval of Xchanging

Capabilities

2

Support

critical

operations

from both UK

& India

CONFIDENTIAL © Xchanging 2011, No part of this document may be circulated quoted orreproduced without prior approval of Xchanging

Capabilities

• FSA authorised & Sarbanes Oxley compliant

• 700 staff in 5 centres in UK and 900 staff in 3 centres in India

• Our Insurers’ Market Repository receives 22,000 documents a day and

now stores over 16 million documents

• c. £52 billion transactions cleared

• £11 billion net settlements in 14 different currencies

• Serve: 50+ managing agents, 100+ company market carriers, 100+

brokers


Capabilities C

lien

t / C

lien

t R

ep

rese

nta

tive

Bro

ker

Xch

ang

ing B

roki

ng

Se

rvic

es

(XB

S)

Bu

rea

u C

arr

ier

Xch

ang

ing

No

n-B

ure

au C

arr

ier

FS

A

Quote Placing Signing down Closing and Settlement Policy Claims & Treaty

Risk to

insure

Review and

capture details

Create quote

documentation

Market

submission

Select

Market

Review

documentsQuote?

Capture brief

details

Yes

Provide

quote to

broker

Accept

quote?

Decline

quote

No

Notify broker

Yes

Create firm order

documentation

Place with

Leader

Write line

Data capture

Place with

following

market

Write line

Data capture

Broker

completes

placing

Capture final

detailsSign down

Produce Cover

note and Debit

note

Stop

Create

signing

documents

Review and

capture details

Errors?

Return

paper docs

File

Output messages

to W/S broker and

underwriter

May be negotiation

on coverage

U/wtr

not

notified

Inform client

placing complete

Paper / e

documents

Resolve

queries

Check

complete

Pays

premium

LIDS/PoSH

LIDS/

PoSH

Tracker

Lloyd's

regulatory

reporting

Review

Review

Create

policy

Submit to

Underwriter

Review

policy Queries

Submit to

XIS

No

Review /

Create

policy

Communica

te to Broker

No

ReviewProposal and

supporting info

SLIP incl

Proposal and

supporting info

3 to 4 quotes

per slip

Create own

files

Note as NTU

Advise

U/Wtr

Stop

Queries

Resolve

queries

Yes

Sign and

seal

No

Return to

broker

Leader may retain

agreed copy

Delays whilst U/wtr

checks policy

May be created by Client,

Broker, XIS or Carrier

Data

W/house

Resolve

queries

Yes

156,400 Lloyd's and 105,000

Company Original Premium

entries in 2007

(new and renewals)

Update files Update files

Broker

captures all

data required

Underwriter

captures

minimal data

All

Underwriters

captures all

data

required

Error rate Front

office to back

office up to 60%

error rate

XIS capture all

data required

Load data

to system

UK "As-Is" London Market Insurance Industry Process Map

Rework to

resolve

XIS

queries

Signed lines

output

to Underwriters

Policy with

client

XIS produce 5,200

policies in 2007

(Lloyd's only)

Financial

reconciliation

File

Reports to Lloyd's used to

report to UK and Overseas

regulators

Broker supply

of information

to FSA

regarding

various stages

of the process

INCEPTION

DATE

Broker

places

elsewhere

Output messages to broker

and underwriter

Problems of

unallocated

cash

Contract

Certainty

achieved

Priority of

legacy Vs live

policies

(250,000 legacy

policies O/S)

LIDS/PoSH

Carrier

system

Process

settlement

Average 15 days

5 day Service level

5 days Service level

"Contract certainty is achieved by the complete

and final agreement of all terms (including

signed lines)

between the insured and insurers before

inception" (Interim definition)

35 days processing cycle

Average 60 days

5 days cycle

Average 3 days

Average 10 days

Average 25 days

10 days (if

error free)

Average 10 days (if error free)

Inception date may be within this range

1st

confirmation to

underwriter of

signed lines

and premium

Broker's

Authority

to process

Settlement

of premium

Settlement

of Premium

Approx 100 fields

to complete

KEY

Data capture

point

Decision pointKey

observation

Xchanging

system

New documentProcess step

UMR

Allocated

Risk

Registration

Not being populated

by all underwriters

Leader

registers

electronically

Record based

on UMR

SLIP

SLIP

Copy Slip

SLIP &

LPAN

43,600 items

registered on

average per annum

since 2004

93,400 Lloyd's and

50,000 Company

policies

signed in 2007

538,000 Lloyd's and

286,000 Company all

Premium entries in 2007

(OPs and APs) 1,900,000 Syndicate

advices output per

annum

Broker

system

Carrier

system

Reconcile to

risk records

Agree?

Book to

debtor

ledger

Yes

Xchanging

process?

Yes

Submit to

carrier

No

Load

settlement to

ledgers

Claims

notification/

Treaty account

Technical

validation of

claim or

advice

Claims

negotiation

& agreement

Request

payment

via

Xchanging

Request

payment

Client payment &

LORS mess'

Reconcile

payment

Unmatched

cash

Client paid

Match?No

Management and

authorisation of

payments

Reciept /

Allocate

Review and

agree claims

for follow

market Process claim

and collect from

Carriers

Review and

agree claims

Process

claim and

pay Broker

Capture details of

claim in systems

CLASS

Management &

authorisation of

payments

Render to

U/W

Management of

receipts to debtor

ledgers

Resolve

queries

Settlement

Present to

carrier

Issues to

resolve?

No

Bureau

Market?

Yes

No

Lloyd's

No

Yes

Issues with

claim?

No

Resolve

issues

Yes

Trigger

settlement to

Broker via

CA

Pay

premium

London Market

policy?

Yes

Send policy

to client

No

Match?

Yes

Match to

Ledgers

Resolve

issues

Authorise

claims

payment

Paper and electronic

processing

5 days Service level

500,000 Lloyd's

claims submissions

per annum to XCS

100,000 company

claims submissions

per annum

Broker supply

of information

to FSA

regarding

various stages

of the process

Broker supply

of information

to FSA

regarding

various stages

of the process

Broker supply

of information

to FSA

regarding

various stages

of the process

Multiple

markets may

be involved in

the process

Rework

loop

Broker to

Xchanging

Rework loop

Broker to

Xchanging

21

Rework loop to reconcile

Reconciliati

on to ledgers

Match?

Yes

Resolve

issues

No

Reconcile?

Yes

No

Errors?No

Query with

Broker

Yes

Resolve

queries

May result in

resubmission

RI or

specialty?

Re Insurance

Check &

analyse

(systems /

coverage)

Check &

Analyse

(Coverage)

Specialty

Check and

analyse

(Systems)

Settle

ment?

No

Create A/C

entry

Yes

RI or

Specialty

Re Insurance

Technical

validation of

claim or

advice

Present to

carrier

Specialty

Query?

No

Resolve

Issues

Resolve

Issues

Request payment

of premium

Queries

with

payment

No

Resolve

query with

client or

pass to AON

Resolve

Query

Resolve

Query

Yes

Bureau

No

Delinked?

Aviation?

Yes

YesNo

Sectornet?

No

Credit control

Yes

XISXCS

Live or Run

Off?

Live

Smart Process:

Prioritise bases on £ /

Client / Age /

Complexity etc

Run-Off

Depending on Priority discontinued items may take up to 31 days to process . Priority items will move through as quickly as 1 day

Live or

Discontinued

Live

Discontinued

Yes Can it be

resolved with

Client?

Yes

No

Can it be

resolved in

XBS?

Resolve is sue

Yes

Yes

RI or

specialty?

Re Insurance

Specialty

Issue

resolution

process

No

Request payment

of premium

Sectornet

Yes

No

Delinked?Yes

Wait for

premium to

be paid

No

Premium Paid

Release

delinked

item

Release

delinked

item

Yes

Non delinked items

USM

RI Xl,

Treaty, or

Other Non

IBIS?

Create

signing

documents

Send to XIS

File

Paper

documents

Resolve

queries

Check

complete

Average 10 days (if error free)

SLIP &

LPAN

Xchanging

process?

Yes

Submit to

carrier

No

Resolve

queries

Delinked?Yes

No

Premium PaidWait for

premium to

be paid

Yes

Produce Cover

note / Debit note

Broker or

XBS?

Broker

No

XBS

Broker or

XBS?

Broker

Yes

XBS

Broker or

XBS?

XBSBroker

Broker or

XBS?

Broker

No

XBS

Initial Check

& analyse

Deferred

Commute

© Xchanging 2008, no part of this document may be circulated, quot ed or reproduced without prior written approval of Xchanging.

Review History

Created By Martin Lancaster

Updated By Rashid Ejaz

Last Updated 24/01/08

Pre-Bind

Xpress

Check?

No

Pre-Bind

Xpress

Check

Yes

Post-Bind

Xpress

Check

Post-Bind

Xpress

Check

Post-Bind

Xpress

Check?

No

Yes

Copy Slip

Post-Bind

Xpress

Check?

No

Yes

540 items

in 2007

Submit

Electronic?

Create Work

Order

Load to

Market

Repository

Yes

No

Market

Repository

Market

Repository

Pega Electronic?No

Yes

Load to

Market

Repository

Create Work

Order

Submit

Electronic?

Yes

No

Market

Repository

Market

Repository

PegaElectronic?

No

Electronicall

y sign and

seal

Yes

Load to

Market

Repository

Email Broker

PPS1980 items

in 2007

BSM

Submit

Electronic?

Load to

Market

Repository

Create Work

Order

Send to XIS

Market

Repository

Yes

No

No

Yes

No

Reducing

demand for

checks

More coming

in electronically

Lighter (40)

checks

QuartsApprox. 35% electronic.

Broker must edit Work

Package wihin 48 hrs to

prevent rejection.

20% don't get

automatched

20% don't get

automatched

Monthly Average of 34% of

items delinked in 2007

No

We do all

these steps

on behalf of

this client

…and run them efficiently and effectively

Xchanging is one of the few processors that can take entire complex processes…


Unrivalled domain expertise

Powerful combination differentiates

Xchanging

End-to-end services

Bundled insurance technology

On and offshore

Insurers’ Market Repository

‐ Unique data bank

Differentiators


Market

Drivers and Themes

• Commercial Insurance Premium

decline

• Pressure to reduce costs

• Commoditisation

Commercial insurance revenues (2010)

Source: Everest, Nelson Hall, PA Analysis

GLOBAL

UK

Xchanging

US

£2.6 billion

£1.1 billion

£800 million

£155 million


Market

Market Forecast CAGR

(2010-14) Xchanging

market share Comments

UK 6.6% 21%

• The most mature geography in terms of insurance BPO adoption

• The average deal value is larger than US although the number of contracts signed is less

North America 6.2% 0% • Insurance BPO market size is 130% of that in UK, while the

insurance industry is 350% - indicating untapped BPO potential

Rest of World 9.2% 4% • Overall adoption of BPO in Asia Pac has been low

• Australia, India, Japan and China are starting to gain traction

Rest of Europe 5.1% 0% • The European market outside UK is fragmented

• Adoption of insurance BPO has been low

7

Source: Everest, Nelson Hall, PA analysis

Commercial Insurance BPO revenues


Competitive landscape


Opportunities

9

• Current market est. £1.1bn with

6.2% CAGR

Commercial P&C

Insurance Industry

UK market

North American market

“One Sector” integrated

approach to market

• Current market est. £0.8bn with

6.6% CAGR

• Xchanging - 21% share

• Strong foundation to build from

Company Market

Insurers, reinsurers

Brokers

Existing Software Clients

Other Insurance Companies

Xchanging Insurance believes

focusing on specific areas will

be a key to growth

Focus growth on the UK and

North America1

Focus on UK Companies Market

and North American Insurers

Focus growth on the UK and US markets

1 Throughout the slides, reference to ‘North America’ includes US, Canada, Bermuda and Caribbean Source: Everest, Nelson Hall, PA Analysis


Challenges

10

Develop services to meet ever

changing global demands

Leverage off existing platforms

Provide new categories of service

BPO Platform

Remove dependence on the

Lloyd’s market

Mirror Lloyd’s domain expertise into the rest of the

UK Insurance Market

Use offshore services to scale globally

Position Xchanging as best

provider of services to the

insurance industry

Develop profile with Third Party Advisors and

Aggregator channels to market

Exploit offshore, low cost, processing services

Play in different space to Global ITO service

providers


Future direction

• Leverage UK footprint

• New capabilities

• Go-to-market plan: integrated approach


Adding value, inspiring innovation · 2013-10-20 · Capabilities • FSA authorised & Sarbanes...

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Transcript of Adding value, inspiring innovation · 2013-10-20 · Capabilities • FSA authorised & Sarbanes...