The London market’s ambition to enable brokers to trade globally with it more easily has taken a significant step closer with phase one of e-Accounts now operational.
Brokers using the system can “send and receive ACORD accounting and settlement messages, thereby dramatically improving a key link in the premium processing chain,” said a bulletin from service provider Xchanging.
The company has actively participated in the modernization initiative. It designed and implemented the system in partnership with the LMG [London Market Group]. The bulletin described the new service as enhancing “the electronic submission of accounting entries for brokers via the bureau on a global basis. Operational efficiency is also enhanced, reducing errors which can improve cash flow to carriers. Currently delays of this kind cost insurers around £3.5 million [$5.64 million] per annum in lost investment income.”
The work isn’t finished, as there will be “planned enhancements in 2012.” Brokers will then “be able to further simplify their accounting and settlement processes with Lloyd’s and London Market carriers, thereby reducing administration costs. This will be achieved by transferring responsibility for identification and processing of underwriters’ tax and regulatory reporting data to outsource specialist Xchanging, which is administering the project.”
Brokers who are now using the e-Accounts service, include: Miller, Aon, Guy Carpenter, Price Forbes, Lockton, Towers Watson and UIB, with other major brokers committed to joining during the fourth quarter.
Steve Spicer, Head of Business Change for Miller commented: “Inevitably migrating processes to being based on data messaging rather than paper requires nerve but I am pleased to say we are already being rewarded with worthwhile benefits from e-Accounts. We look forward to next year when the planned enhancements promise to bring greater benefits by increasing the scope of what we can process.”
Managing director of Xchanging Insurance Sector Max Pell added: “e-Accounts has been a much-heralded ambition of the London market to ease global trading by reducing brokers’ administrative and frictional costs. With e-Accounts that ambition is becoming a reality and the London market is now open for electronic account trading.”
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