SERVICE AND INNOVATION MARKET FORUM · 3/5/2014 · 2013 •Single Adjusting Location •...

SERVICE AND

INNOVATION

MARKET FORUM Global solutions for local markets

5 March 2014

WELCOME

Adrian Guttridge

Executive Director, Global Insurance

© 2014 Xchanging plc

YTL Community platform

Gatwick Airport

ACTIVITES BEYOND INSURANCE

3

Empowered e-Sourcing

AR Enterprise

& Kedrios

#3 in global procurement

CONFIDENTIAL: No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging


INSURANCE HEADLINES

4

&

Underpinned by committed Insurance Investment

VCS


DCS

360


AGENDA

Topic Speaker

Welcome Adrian Guttridge

The Global Utility Max Pell

Refreshing London

Market Services Rob Myers and Steve Reid

Xchanging Claims Kerry Rainer

Xuber Update John Racher

Modernising London &

Assembling

The Global Utility

Jim Sadler

Q&A Adrian Guttridge

5 CONFIDENTIAL: No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging

THE GLOBAL UTILITY - STANDARD INDUSTRY

PLATFORMS

Max Pell

Managing Director, UK Insurance Services


A NEW GLOBAL UTILITY - START WITH THE END IN MIND

7

Global

Carrier

Global

Broker

Broker Services

Best of Breed Platforms

Xuber for Brokers

Carrier Services


Xuber for (Re)Insurers

Xuber for Brokers Xuber for (Re)Insurers


© 2014 Xchanging plc 8

Inter-connected benefit case across Operations, Risk,

Finance and Treasury

80%

Capital

Efficiency

Operational

Efficiency

Transparency

& Control

50% 0

Unmatched Cash or Ledger

items



SUCCESSFUL IMPLEMENTATION WITH RSA

9

Capital

Efficiency

Operational

Efficiency

Transparency

& Control

• 5 FTES reduced to 1

• 47 process steps

reduced to 26

50%

• With just 2 entities!

• 100s of

transactions

netted down to

just 5 currency

movements each

week

• unmatched cash

entries & unpaid

ledger entries

• 6 week monthly

closing cycle

reduced to 2

weeks

80% 0%



NETSETT SUPPORT TO RUSCHLIKON

10

Sender Recipient

Sender

Gateway

Recipient

Gateway

TA

TA

TA

Ack

FA

FA

Ack FA

TA Ack

FA Ack

TA and FA

L4 Ack’s

Ruschlikon/e-Accounting Process

(TMEL or P2P connection)

Participant

List

PSRq1 PSRs1 PSRq2

PSRs2

(TMEL or P2P connection)


ePLACING

PLATFORM


ENABLING SUCCESSFUL MARKET ADOPTION

Creating the right environment for adoption

12

1. EVOLUTION NOT REVOLUTION… Using Market proven technology

6. HISTORY OF PARTNERSHIP… Through experience and

successful delivery

5. COMPELLING COMMERCIAL PROPOSITION…

With low upfront investment and risk

3. DOCUMENT COLLABORATION… Enhancing effectiveness of

interactions

2. MAXIMISES CURRENT IT INVESTMENTS… Through choice and flexibility

4. OPTIMAL BLEND OF PEOPLE, PROCESS & TECHNOLOGY… To deliver business outcomes



BROKER MMT

ASSEMBLING OUR PLACING UTILITY

13

GLOBAL BROKER GLOBAL CARRIER

MARKET DIRECTORY

OTHER GLOBAL

PLACING

PLATFORMS

OTHER GLOBAL

PLACING

PLATFORMS

CARRIER MMT

BROKER SYSTEM CARRIER SYSTEM

XCHANGING ACORD GATEWAY

COMMON CORE RECORD

IMR

DATA CAPTURE SERVICE

BUSINESS PROCESSING SERVICES

OFF PLATFORM

MESSAGE

OFF PLATFORM

MESSAGE



BENEFITS TO BROKERS BENEFITS TO CARRIERS

ADDING VALUE FOR BROKERS AND CARRIERS

14

Maximises current investment

Reduces effort and errors in data

Minimises the risk of dispute

Minimises burden of administration

Enables cost effective sourcing

Improved access to London

Maximises current investment

Easy to use Carrier UI

Minimises the risk of dispute

Minimises burden of administration

More business placed in London

Enables global operations



Global

Carrier

Global

Broker

A NEW GLOBAL UTILITY - START WITH THE END IN MIND


Broker Services


Xuber for Brokers

Carrier Services




REFRESHING

LONDON MARKET

SERVICES Rob Myers

COO Insurance (UK & India)


AGENDA FOR TODAY

17

2013 reflections

Progress on 2013 commitments

Guiding principles

Product updates

New ideas under consideration



2013 PERFORMANCE IN SUMMARY

18

£54.2bn £9.1bn 1,289,214

938,232 Over 36m

documents

Over 32m

messages

Sum of all accounting transactions

processed by XIS services/systems

Net position of all accounting

transactions (up 14% from £7.94bn in

2012

Number of inward premium

transactions between brokers and

carriers (+10% on 2012)

Number of Lloyd’s claim advices using

the Syndicate Claims Message (+11%

on 2012)

Number of documents on the IMR

(30% increase & over half a billion IMR

page hits)

Over 32m messages through our

messaging hub including 7.5m

ACORD messages



WHAT WE SAID IN MAY 2013

Improving

Cash Flow

• Shared risk capture & credit control

services

• Best practice to be encouraged (CPPM)

• Expected accounts monitoring & chasing

• Ledger cleansing

Delegated

Authorities

• Data blind spots & control challenges

• Bordereau validation technology

• Central bordereau cleansing/validation

• Q3 pilot - Risk Bordereau for Followers

• Data Control Framework adherence

• FCA scrutiny

Market

Submission • Customer access to central services

We are targeting the areas we think are most important to you



OUR GUIDING PRINCIPLES FOR SERVICE REFRESH

Easy to

Consume

• Low barriers to use

• Integrated, yet flexible and portable

Enabling

Choice

• Menu of services; not all or nothing

• Want to Use, not Have to Use

Managing

Cost

• How do we reduce customer TCO

• Case for investment by XIS/Xchanging?

Operational

Rigour

• Right things, right time, right order

• Think end-to-end process

Compelling

Solution

• Technology led innovation

• Commercially attractive

Acknowledging what we have heard and learned over the past year



REVIEW AGAINST COMMITMENTS


• Selected as preferred supplier for

shared Risk Capture service – “DCS” (Data Capture Services) implemented

in pilot mode

• Not selected for shared Credit Control services – customer choice!

• New Delegated Authority service

implemented – Bordereaux Transformation, part of our new Binder 360 Services suite

• New chasing service for expected

accounts on Binding Authority business

(binder bordereaux chasing) to be launched in Q2

• Detailed preparation in progress for

Market Submission

REFRESHING

LONDON MARKET

SERVICES Steve Reid

Business Solutions Director, Insurance


DATA CAPTURE SERVICES (DCS)

23

Pilot service, limited volumes & classes – Bound risks

Full scale service – all classes, bound risks

“Right time” value added services

Full lifecycle support – quotes through to endorsements

• Pilot service live in January;

controlled volumes initially

• 15 pilot carriers

• Input and despatch by email

and ACORD compliant

messages

• High quality risk record

delivered early in the

business process

• Work on full scale solution in

progress and scheduled for

release later this year

• Roadmap for next stages

TBA with market input

Pilot carriers

Ace Antares Ark

Ascot Aspen Asta

Atrium Beazley Canopius

Catlin Channel Hiscox

Liberty Navigators Talbot



BINDER 360

3 elective live service

offerings:

Bordereaux Transformation – hits the number one pain point for insurers

Un-structured Bordereaux in....cleansed standard structured bordereaux out

Strong customer pull; over a dozen contracts and registration forms have now

been issued

Further additional value services in progress including Bordereaux chasing & RMS

output

Pay as you go pricing

New menu of Binder Management Services – “Binder 360 Services”



FEES DIRECT +

Helping to control the cost of managing professional advice

Over £1bn spent annually in the London Market on fees for third party experts

6 managing agents have now signed up; 6 further contracts issued for review

Plan is to launch the service to the

company market in May

Benefits include:

approx. 6% savings

faster fee settlement

improved control

powerful MI

“Procure to Pay” service launched in February 2013

04/03/2014 PRESENTATION INFORMATION IN FOOTER 25


E-ACCOUNTS

Significant component of market modernisation

8 brokers using E-Accounts – but volumes are low

Removes some manual re-keying activity by XIS

Benefits include:

Improved data quality

Improved consistency of processing

Improved audit trail

Option to remove the burden of

“accounting splits”

Accounting splits – market testing with Aon

More take up required!

26

Broker presents premium data via

ACORD TA message

Broker loads supporting

information to the IMR via DRI

XIS acknowledges submission via

ACORD

XIS validates TA details & creates Accounting Splits

(as requested)

Broker triggers settlement of

delinked premiums via ACORD FA



NEW IDEAS UNDER CONSIDERATION


DCS Roadmap – aggregate capture; risk schedule cleansing; fraud/sanctions checking

Binder 360 Services Roadmap – bordereaux chasing; new output formats; PDF service; enhanced credit control

Fees Services Roadmap – company market; manual invoice creation by experts

X-presso Roadmap

Actuarial & Analytic support services

New elective claims products – TPA offering; FNOL; Medicare

DCS

360

FD+

XCHANGING

CLAIMS Kerry Rainer

Head of Go To Market - Claims


OUR COMMITMENT

Committed to claims adjusting

Committed to innovation - developing further claims

products

Committed to reducing the average lifecycle of a

claim and the average cost of a claim, whilst

delivering improved customer services



2010 •Single Adjusting Location

•Product Monopoly

•London Market Focus

•London Market Software

•Rigid Business Model

•197 FTE

2013 •Single Adjusting Location

•Product Monopoly & Elective

•London Market Focus

•London Market Software & Developing Xuber

•Flexible Business Model

•180 FTE

2017 •Multiple Adjusting Locations

•Elective Services

•Global Insurance Markets

•Xuber Based

•Enhanced MI Capabilities

•Agile Business Model

•200+ FTEs

Xchanging

Experienced and skilled people

Process capability

Access to great

technology

CLAIMS IS CHANGING



VCS – IN MORE DETAIL

31

Claims Adjusting Settlement/Closure

Investigation Negotiation Accept

claim is in scope

Closure

Acceptance

Standard market service available to all Managing Agents

Lloyd’s minimum standards compliant

Choice of two service providers

Competitive pricing on a per claim basis

Cost effective adjusting channel for non-contentious volume claims

Overall SLA of 48 working hours

Lloyd’s governance infrastructure and oversight

Delivered from London



CLAIMS MANAGEMENT MODEL


XRM Fees Direct+

MI - Dashboards

Analytics

Binder 360

FNOL Claims

management

Salvage +

Recoveries

Fees management


OUR COMMITMENT

Committed to claims adjusting

Committed to innovation - developing further claims

products

Committed to reducing the average lifecycle of a

claim and the average cost of a claim, whilst

delivering improved customer services


XUBER UPDATE

John Racher

Head of Product Strategy

@JR_Xuber

Xuber Launched 18 months ago

• New Technology

• New Architecture

• Built on experience

• Added 8 new customers

• New releases

• Continuing to support Xchanging initiatives like Netsett and the Global Utility

We announced the future of our Insurance Software…

Elgar

Genius Iris

Brokasure

Xuber for

MGA’s

Xuber for

Brokers

Xuber for

Insurers

Xuber for

Reinsurers

130 Customers

40 Countries

Xuber – 18 months on

• Four new software suites

• Axa goes live on Xuber Claims

• US launch in April 2013

• Everest Re signs in US

• Ascot U/W first in 2014

We announced the future of our Insurance Software…

Elgar

Genius Iris

Brokasure

Xuber for

MGA’s

Xuber for

Brokers

Xuber for

Insurers

Xuber for

Reinsurers

2013 – Componentised Carrier Solutions Powered by the Xuber platform

Policy

Claims Billing

Xuber for

Reinsurers

Xuber for

MGA’s

Xuber for

Brokers

Xuber for

Insurers

Xuber for

Reinsurers

Policy

Claims Ceding

Billing

2014 – Full Lifecycle Carrier Solutions Ceding completes the picture…

Policy

Claims Billing

Xuber for

Reinsurers

Policy

Claims Billing

Policy

Claims Ceding

Billing

Ceding

Xuber Market Configuration Packs Begins to complete our vision

Market

Configuration

Ma

rket

Co

nfig

ura

tion

Ma

rket

Co

nfi

gu

rati

on

Market

Configuration

Single

solution…

…multiple

markets

Xuber London Market Configuration Pack London configuration on a global solution

Market

Configuration

Ma

rket

Co

nfig

ura

tion

Ma

rket

Co

nfi

gu

rati

on

London

Configuration • Workflow

• User Interface

• Dashboards

• Reports

• Documents

• Methods of placement

• Lines of business

• Messaging

• Reference data

Our Vision – Global solution and local capability Single solution, multiple markets, managed migration

Market

Configuration

US

Ad

mitte

d B

erm

ud

a

London

Market

Upgrade

Studio

Upgrade

Studio

MODERNISING

LONDON &

ASSEMBLING

THE GLOBAL UTILITY

Jim Sadler

Group CIO

@xchanging_CIO


TODAY’S STORY

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.

4. ASSEMBLING THE GLOBAL UTILITY.

CONFIDENTIAL: No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging 43


TODAY’S STORY

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




MARKET FORUM 2013

A refresher of last year’s messages

I explained the various forces

driving our view of a future

market platform

I highlighted the 4 pillars of

modern flexible technology

that we now have

I outlined a modernisation route

map for London aligned with

emerging Global needs

I showed you that a Global

Platform and the London platform

capabilities are not that different

I committed to a significant

investment in and expansion of

the X-presso platform



TODAY’S STORY

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




TODAY’S STORY

47

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




Claims Agreement

X-presso Lite Broker Lounge

Last time we promised:

• Claims Viewer • IMR4Brokers • Configurable industry newsfeed • Access to X-presso wifi

What’s on the platform:…

Mobile CAS

The Hub for Insurance Professionals.

Content. Community. Connectivity



Mobile CAS • Go Live in March ’14

• Log in with ECF credentials

• Agree, query & decline claims on the move



PRIVATE AND PRIVATE AND CONFIDENTIAL © Xchanging 2012. No part of this document may be circulated, quoted or reproduced without prior

approval of Xchanging. Subject to contract. 51

Carriers sign up





Underwriters advertise availability





Brokers scan and search





Book appointments and join queues





Carriers: Brokers:

• Understand availability

• Underwriters and Claims Adjusters

• Dynamically control queueing

• Book forward appoitments

• Advertise availability

• Increase prominence

• Analyse activity

Single platform



Explain how it works



• Available in April

• 2 insurers already engaged in implementation

• First Aromo customer will go-live in April

• Carrier and Broker launch events

Register or get in touch for a demo -

[email protected]



TODAY’S STORY

62

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




TODAY’S STORY

63

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




THE IMR PLATFORMS GO FROM STRENGTH TO STRENGTH

36 million documents on the IMR

Half a billion page hits in 2013

32 million messages through our gateway

4 foundational pillars of modern technology

64

• Heavy use of packaged software and tools • Modular

• Ease of integration • Suppression of mainframe by 50%



WE ARE MODERNISING THE IMR PLATFORMS: DRIVERS

Your 5 year deal has enabled us to do something transformational

65

1 SCALE.

2 SIMPLIFY.

3 MAINTAIN.

4 ECONOMISE.

5 ENVISION.

► Grow capacity in line with increasing volumes and maintain SLAs ◄

► Improve robustness, maintainability and re-usability ◄

► upgrade and keep the system in good working order ◄

► Reduce operating costs in line with benchmarked price ◄

► Enable a modernised future… through a firm foundation ◄



WE ARE MODERNISING THE IMR PLATFORMS: AIMS

Our refresh programme will double the capacity of the system

66

LPANs (Company) June 2012

December 2017

10 20 30 40 50 60 (000s per

month) 20 40 60 80 100 120

LPANs (Lloyd‘s) June 2012

December 2017

(000s per month)

10 20 30 40 50 60

Documents Stored June 2012

December 2017

(000,000s) 50 100 150 200 250 300

Claim Responses by Carriers June 2012

December 2017

(000s per month)

The system can handle up to 720,000 documents being uploaded to the repository every month.

720k By 2017, the system will support over 9,000 registered users.

10,000 The capacity of the IMR will be

DOUBLED by 2017



WE ARE MODERNISING THE IMR PLATFORMS: OUTCOMES

The programme will refresh the entire system

67

SOFTWARE

All third party software will undergo a

major version upgrade

Software at end of vendor lifecycle will

be replaced

HARDWARE

All hardware will be replaced (55

servers)

The total usable storage will increase

from 75 TB to 215 TB

A 5 year investment profile totalling over £12m

75 TB

215TB



WORKING WITH BEST OF BREED SUPPLIERS

68

Systems Integration

Hosting & Service

Management

Application Development

Software Tools &

Packages

XIS DEV: 5

SVC: 5

Processing Services

XIS


We continue to follow a strategy of working with the best software in the market

and have recently completed a major milestone in step changing our own

capability


TODAY’S STORY

69

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




TODAY’S STORY

70

1. REFRESHER.

2. X-PRESSO.

3. IMR PLATFORMS.




SO LET’S GO BACK TO THE GLOBAL UTILITY

You could be forgiven for thinking that we want to own the ranch…

71

…but we don’t see the world like that, and it would not be good for customer choice

Global

Carrier

Global

Broker

Broker Services


Xuber for Brokers

Carrier Services






YOU CAN THINK OF OUR VISION LIKE THIS…

An ecosystem of suppliers with a single utility platform at the core

72

“The utility platform”

“The elective services”


© 2014 Xchanging plc CONFIDENTIAL: No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging

…OR THIS

Still the same concept 35 years on

73

“The utility platform”

“The elective services”


WHAT DOES GLOBAL AND LONDON CONVERGENCE MEAN?

74

A Common Utility Framework that serves both London & Global

Global

For

Global

London

For

London

Global

For

London

A Framework that we’ve been evolving & bringing to life for some time now



THE IMR PLATFORMS PROVIDE THE PILLARS OF DNA


IMR

eAccounts X-presso

ECF2


THE PILLARS OF THE UTILITY FRAMEWORK DNA


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PM

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Da

ta

Policy Claims Binders Settlement

ECF2 IMR eAccounts X-presso


THE ROADMAP THAT GUIDES US

Evolving representations but a consistent direction of travel


Central Services

Single version of the truth

Available to all participants

Synchronised with systems

Binder and Treaty support

Bordereaux Translation

Data validation and enrichment


Distribution to all participants

Universal ACORD hub

Policy submissions

Premium submissions

Claim submissions

eAccounts3 and ECF3: Providing faster, richer

electronic data to reduce cost and cycle t imes

Standard ACORD

EBOT and Claims

Management Standard messages

ECF Write-back Binder bordereaux

data

Binder Bordereaux Hub

Roadmap Presented in 2012 Roadmap Presented in 2013

ECF3 and eAccounts3 Concepts

eAccounts R2

DCS

Binders

Market Submission ECF2 Write Back


WHAT WE HAVE DELIVERED IN THE LAST 18 MONTHS


eAccounts R2 DCS

Binder 360 Claims Elective Services


THE 2013-14 INITIATIVES HAVE EVOLVED THE PLATFORM


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PM

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Da

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eAccounts R2 DCS Binders 360 Claims Elective Services


THE CONTINUATION OF THE JOURNEY

The DNA Strands for the next stage of evolution

80

Roadmap Presented in 2012 Roadmap Presented in 2013

Central Services


Available to all participants

Synchronised with systems

Binder and Treaty support

Bordereaux Translation

Data validation and enrichment


Distribution to all participants

Universal ACORD hub

Policy submissions

Premium submissions

Claim submissions

eAccounts3 and ECF3: Providing faster, richer

electronic data to reduce cost and cycle t imes

Standard ACORD

EBOT and Claims

Management Standard messages

ECF Write-back Binder bordereaux

data

Binder Bordereaux Hub

ECF3 and eAccounts3 Concepts

Binders Market Submission

Refresh the Core Carrier Interface



THE NEXT STAGES OF EVOLUTION

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Binders Market Submission Carrier Interface Refresh the Core



NETSETT

82

Netsett



NETSETT

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PM

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ta


Netsett



THE MISSING LINK?

84

ePlacing



E-PLACING – THE MISSING LINK

85

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PM

Se

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Da

ta


ePlacing

Co

llab

ora

tion



IN SUMMARY

WE ARE DELIVERING ON OUR COMMITMENTS.

86

X-PRESSO GOES FROM STRENGTH TO STRENGTH.

WE HAVE BEEN LIBERATED TO INVEST & INNOVATE.

WE ARE GUIDED BY A CONSISTENT & PRAGMATIC ROADMAP.

FOUNDED ON PRINCIPLES OF CUSTOMER DEMAND & INCLUSIVITY.

TO DELIVER BENEFIT TO LONDON & GLOBAL ORGANISATIONS.



SUMMARY

• Modernisation

• Global Solutions for Local Markets

• A vision for a Global Utility

• A clear way forward for London

• Partnering with the best

• Giving you choice


QUESTIONS?


ONE XCHANGING LOCATION


THANK YOU

SERVICE AND INNOVATION MARKET FORUM · 3/5/2014 · 2013 •Single Adjusting Location •...

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Transcript of SERVICE AND INNOVATION MARKET FORUM · 3/5/2014 · 2013 •Single Adjusting Location •...