1 Workshop Programme 2013 Non Bureau Accounting Workshop Wednesday 17 th July at the ACORD office...

1

Workshop Programme2013 Non Bureau Accounting Workshop

Wednesday 17th July at the ACORD office

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.

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.

Workshop Programme

Welcome and Progress Update Simon Squires XL Chair LMG NBWG

The Implementation Experience

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

Non-Bureau Accounting Workshop

Welcome and Progress Update

Simon Squires

2

Simon SquiresRuschlikon & eAccounting www.ruschlikon.com

NON BUREAU WORKING GROUPWorking Together to Deliver Progress

2011

2012

2013

2014

2015

Validation/Build-Out

Scope/Volume Expansion

Leading Edge Processes

Laying the Foundations

Standard Market Operations

Simon SquiresChairman17/07/2013


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


Who are the key participants

Founding Members

Early Adopters

Planning Implementation


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


NON BUREAU WORKING GROUP

IMPROVED CONTROL ENVIRONMENT

CLIENT SERVICE IMPROVEMENTSLEADING EDGE PRACTICES

TEAM FOCUS

FINANCE

0

20

40

80

100 120

140

180

200

220

OPERATIONS PEOPLE

1 • No Unallocated Cash• Better Audit Trails• Standard & Reliable

Technology

2 • Improved Receipt & Payment Timelines

• Operational Efficiency• Leading Edge Practices

3 • Reduction in Non-exceptional 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


Paper / E-mail Closings- Incomplete documents- Non standard formats- No ackowledgement of

receipt required

CURRENT STATE PROCESSING WITHOUT MESSAGING

Manual Statements-Time consuming spreadsheet process - Lengthy agreement timecycle- Large query volumes

Delayed Payments- Inconsistent due dates- Timeline driven by reconciliation - No agreement of items payable


The Ruschlikon ProcessSe

nder

Rece

iver

CreateTA / CM

Send TA / CM Message

ReceiveTA / CM Message

QueryTA / CM Message

AcceptTA / CM Message

Investigate and Resolve

ReceiveL4 ACKN

CreateFA

Send FA Message

Receive FA Message

Reject FA Message

Accept TA Message

Investigate and Resolve Settlement

ReceiveL4 ACKN

Note: For every CM there is a corresponding TA

<10 Days>

<5 Days> <3 Days>

<3 Days>


Message Standards, flows and interactionsWorkflow timing recommendationDocument Exchange StandardsRecommended implementation stepsMinimum connectivity requirementsTarget Performance StandardsContinuous improvement of processing time

Providing Best Practices

Global (Re)insurance Best Practices – Accounting, Claims & Settlement


TA/FA Concept - Insurance Message Expansion

BROKERS

INSURER

BROKERS

REINSURER

ASSUMEDREINSURER

CO INSURER


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


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

- Foster the Ruschlikon approach in a local environment

- Feed local requirements into Ruschlikon / ACORD standards

- Community Chairs participate in the Ruschlikon Steering Group



The Broker Implementation Experience

Charles Brown

15

Non Bureaux Working Party Workshop 17th July 2013

JLT London Market

‘The Implementation Experience’

Our ApproachLess Risk/Lower Cost

Premiums Only

Project Milestones

Project Brief October 2012

PID November 2012

Joint Workshop with ACE/XL

November 2012

Functional Design February

2013

Gateway Provider March

2013

Develop/Build & Test

April to June 2013

Live 8th July 2013

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


The Insurer Implementation Experience

Kate Roy

22

Non Bureau eAccounting – AIG UK Experience

Kate Roy - Head of UK Operations

AIG Property Casualty

24

The AIG UK ExperienceWhere 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

25

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

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.


The Insurer Implementation Experience

Mark Chapman

27

Cedent OutwardLondon Non-Bureau Working Group

Mark ChapmanGroup CIO

17 July 2013

• 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

What are we doing?

• 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 Challenges

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

The Future


Co-Insurance Developments

Heather Griffiths

32

Co-Insurance e-Accounting: Faster, Better, More Accurate


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

Building on the success of the London Market


• Proven Case benefit between Broker and Insurer

• Next steps : Implementation of e-Accountingdirectly between Insurers

• Co-Insurance Enabling Lead Insurers in Europe to message directly with follow Insurers in real time

Extending the TA/FA Concept to Insurer Message Expansion

BROKERS

INSURER

FOLLOW CO-INSURER

LEAD INSURER


Lead Insurer(60% share)

BROKERResponsible for paying the Insurer Market

Follow Insurer B(15% share)

Follow Insurer A(20% share)

Follow Insurer C(5%Share)

UK e-Accounting Broker & Co-Insurance Model

Insured Pays the Broker

Proven Quick Win s

Full data set

Transactional accuracy

Independent control s

Early querying ProvenQuick Wins

Paid 15 business days

earlier I

Reduced admin costs

Reconciliation rates

>95%


LEAD INSURER – Receives 100%

Pays the Follow Market

BROKER Pays the Lead Insurer

Follow Insurer B (15% share)

Follow Insurer C (5% share)

European Market Co-Insurance Model

Follow Insurer A (20% share)

Insured Pays the Broker

TA: Lead Insurer receives TA

message 24 hrs after Broker

Booking is completed. Co-

insurers message is sent 24Hrs

later

FA : Broker sends FA to Lead Insurer 24 hrs after booking payment . Lead sends FA to Co-insurers 24 hrs later.

Quick Win s

Full data set & early query resolution

Transactional accuracy & validation

Independent control s

Improvement in payment speeds


Paper / E-mail Closings- Incomplete documents- Non standard formats- No ackowledgement of

receipt required

EUROPEAN CO-INSURANCE CURRENT STATE PROCESSING WITHOUT MESSAGING

Manual BXD reconcilition • Time consuming

spreadsheet reconciliation• Large query volumes &

unallocated cash • Inconsistant or no valid

reference numbers• Claims deducted without

prior agreement

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

Large Bordereau statements• Little or no entry validation

proir to BXD receipt or payment

• Inconsistant data formats received from Market Insurers

• Little or no consistant supporting documentation attached to support entries processed


Transaction validation- Tech account (TA) message sent early, as soon as the broker books the item - Standard data format- Complete/accurate dataset

FUTURE STATE PROCESSING WITH MESSAGING

Electronic Reconciliation- Real time agreement - Technical/payment transaction linked- Team can focus on queried/ unpaid items.- Early query resolution

Faster Cashflow - Items can be up six weeks earlier - No backlogs - can focus on key items- Financial account (FA) sent as soon as payable


Sample CoInsurer Invoice

Taxes

Total Due

Lead Insurer Policy Reference

Co-Insurer SharePremium

Lead Office Commission


Spreadsheet for Invoice

Smith Inc.Territories Payable in EUR:

Country Policy Number Total Due PD Values Local

Currency

BI Values Local

Currency

PD Premium

Local

Currency

BI Premium

Local

Currency

Gross

Premium in

Local

Currency

Tax in Local

Currency

Total in Local

Currency

ABC 20%

Premium

ABC 20%

share of

Taxes

RI

Commission

, 5% Master,

7.5% FOS.

Net due to

ABC

France GB00024891PR13A £171,931.68 171,555,850.00 122,902,800.00 107,306.80 76,874.71 184,181.50 13,539.93 197,721.43 36,836.30 2,707.99 2,762.72 36,781.56

Lead Insurer Policy Reference

PremiumLead Office Commission

TaxesTotalDue


Co-Insurance TA in BOMMT

Expanded View


Co-Insurance TA in BOMMT Detail view


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


QUESTION AND ANSWER SESSION


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.

Technical Subcommittee

Simon Gaffney (Willis – LIIBA & Chair)David Heard (AIG - IUA)

Richard Hayes (Ascot - LMA)James Bobbitt (TMEL)Chris Croft (Secretary)

Operations Subcommittee

Kirk Maddern (Liberty Synd - LMA & Chair)David Salvage (Aon - LIIBA)

Rob Gillies (LMA)James Bobbitt (TMEL)

John Hobbs (IUA)Chris Croft (Secretary)

TMEL BoardShrine Khoury-Haq (Catlin - IUA & Chair)

Kirk Maddern (Liberty Synd - LMA)Robert Humphreys (Lloyd’s) Simon Gaffney (Willis - LIIBA)

Chris Croft (Secretary)

Finance and Compliance Subcommittee

Robert Humphreys (Lloyd’s & Chair)David Hough (LIIBA)

John Hobbs (IUA)Pat Hakong (LMA)

Chris Croft (Secretary)

Operations Team (Lloyd’s)

James Bobbitt – Operations ManagerNav Sarao – Technical Analyst

IBM Support team

James Bullock – Service ManagerTBA – Team Lead

Debi Samal – Technical AnalystDavid Mallenby – Architect

Jacky Connacher – Delivery Manager

Governance

Single point of connection, connecting to all trading partners

Exchange Connections

Broker A

Broker B

Broker C

Broker D

Broker E

Carrier A

Carrier B

Carrier C

Carrier D

Carrier E

Carrier F

Carrier G

Carrier H

Carrier I

The MessageExchange

Broker A

Carrier A

Carrier B

Carrier C

Carrier D

Carrier E

Carrier F

Carrier G

Carrier H

Carrier I

Broker B

Broker C

Broker D

Broker E

P2P Connections

What does it do?

Broker

Accounting & Settlement

Reporting, Bordereau etc.

Claims

Placing & Endorsements Carrier

XML

XML

XML

XML

Who's CONNECTED ?• 38 Brokers, 34 IUA companies and all Lloyd’s managing Agencies (for placing / endorsements)

EBOT Connections ……..

Exchange Volumes

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-130

200

400

600

800

1000

1200

1400

1600

1800

2000EBOT Message Volumes June 2012 - 2013

EBOT

Exchange Volumes

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-130

5000

10000

15000

20000

25000

Placing / Endorsement Volumes June 2012 - June 2013

Placing/Endt

Exchange Volumes

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -

5,000

10,000

15,000

20,000

25,000

2012 2013

Fig1. The graph below compares the monthly year on year total volumes processed via the Exchange. (Excluding Support)

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


International Progress

Mark Barwick

58

Six communities, one global standard

Accounting, Claims & Settlement

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Ruschlikon Steering Group

60

Participants – Aon, Axis Capital, Catlin, Guy Carpenter, Munich Re, SCOR, Swiss Re, Willis, XL Insurance, XL ReResponsible for Chairman of each of the Regional Implementation Groups invited to attendCurrently promoting implementation in mainland Europe

Ruschlikon ACORD European Summit held in Paris on 4th JuneFollow up webinar planned for 24th JulyFurther 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

Ruschlikon Bermuda

61

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 annumImplementations already in place with Platinum Re, XL Re, Amlin, Validus, Aon, Guy Carpenter and WillisMost 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 meetingThe 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 2013Further implementation and marketing event planned for November 2013

North American GRLC eBusiness Committee

Group consists of Aon Benfield, Guy Carpenter, Willis, Chartis, Munich Re, Swiss Re, Partner Re, Travelers and XL ReThe 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, MNRBChairman is Andre Tesnar from Swiss Re2nd meeting held in Singapore on 25th February 2013Swiss Re and Aon are live in Singapore. XL Re and SCOR to follow very soonPuneet Bharal went out to Singapore in July to spend 2 days with Andre Tesnar

Plan next stepsDevelop marketing planNext meeting date to be arranged for Q3

Ruschlikon Australasia

1st meeting held in Sydney on 4th March 2013.As of yet group still being establishedFurther meeting planned for Q3ACORD 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 successCore broker and (re)insurer administration systems can promote implementation by integrating their software with vendors gatewaysChoice of vendors in good for brokers and insurers and promotes competitionRuschlikon are considering forming a Vendor Community to:

Keep vendors informed of Ruschlikon progress and message enhancements so they can plan their product developments accordinglyTo maintain the Vendor Matrix – see next slideTo provide vendors an insight into BIG and related technical workTo ensure that all members of the Ruschlikon Implementation communities know the EBOT/ ECOT capabilities of the major vendorsYour thoughts?


NetSett Progress Update

Graham Card

66

XchangingInspiring innovation

Netsett – progress update

NBWG Annual Event

17th July 2013

CONFIDENTIAL © Xchanging 2013, No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging.

67

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.

69

Xchanging’s existing London Market service

Multi-lateral netting and settlement is here and has been for some time


Fully automated process

1,119,458 transactions processed

£7.9 billion in cash moved

XchangingCentral Hubmulti-party,multi-currency

£52.6 billion

The London Market

The global insurance market moves around £2 trillion of accounting transactions between thousands of parties

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).

70

Alignment to NBWG and e-Accounting


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

74

What Netsett can offer today and beyond

Release 1

► Supports TA ► Supports.CSV ► On-line approval

process

Release 2

►Supports TA / FA► Supports ACORD► FX capability

Release 3

► Aiming to align

with NBWG and

the Ruschlikon

process

Q1 2013 Q3 2013 Q2 2014 (TBA)

AVAILABLE NOW


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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