International broker Lockton announced that its London operations have “commenced trading with e-Accounts, the initiative which enhances the electronic submission of accounting entries by brokers to support global business.”
Lockton’s Property and Aviation division partnered with Xchanging to successfully test e-Accounts using Brokasure, Xchanging’s brokerage system.
Lockton added that, provided these two sectors are successful it would “potentially roll out e-Accounts to other divisions in the coming months.”
The phase one for implementing e-Accounts marks a significant step in the London market’s “ambition to smooth the passage of global trading with brokers,” Lockton explained. “Based on ACORD messaging, the back office account settlement initiative improves a key link in the premium processing chain.
“This removes the work currently required to pre-validate submissions. 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 [$5.6 million] per annum in lost investment income.”
Lockton Chief Operating Officer Simon Coleman commented: “e-Accounts is an important step in harnessing technology to bring greater efficiency to our business and the wider market. While this is more evolution than revolution and things are still at an early stage, the initial indications from the test phase are very positive. If use in a live setting validates these successes Lockton will be in a prime position to capitalize on the benefits to be had from e-Accounts. We see e-Accounts as another step in the market modernization work which aligns with Lockton’s commitment to improved client service.”
Xchanging Insurance Sector Managing Director Max Pell added: “e-Accounts is a much heralded ambition by the London market to ease trading by removing brokers’ administrative and frictional costs. With e-Accounts live that ambition has become a reality as the London market is now open for electronic account trading.”
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