Efficiency in ebusiness Implementation. Marc Codispoti ACORD

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1 Efficiency in ebusiness Implementation Marc Codispoti ACORD ACORD 2011

2 Agenda Introductions ACORD Messages and Use Implementation Roadblocks and Solutions 1 December

3 Introductions Advisory Group New Participants Virtual Participants ACORD Staff 1 December

4 ACORD 2011 ACORD Messages and Use

5 ACORD RLC Processes Backoffice Messages EDIFACT and XML messages Technical account establishes debt Financial account details of payment ClaimMovement reports claim details Supported by acknowledgement message 1 December

6 ACORD RLC Processes Backoffice Implementation First area addressed by most implementers EDIFACT and XML Processes Fully defined 1 December

7 Messages Placing Supports build, quote, bind, endorsement XML only TechAccount Used for sending premiums, claim payments, treaty accounts, etc EDIFACT and XML 1 December

8 Messages Settlement Used to send financial accounts (listings of settlement items) EDIFACT and XML ClaimMovement Used to report claims EDIFACT and XML 1 December

9 Messages Acknowledgement General response message supports all of above EDIFACT and XML Bordereau Used to send breakout listings of premiums or claims EDIFACT and XML 1 December

10 Messages Regulatory reporting Used to report regulatory details internally (i.e. not to a regulator) 1 December

11 DRI standards DMS Own Repository SupportingDocument Data sent in either the TechAccount or ClaimMovement Receiver DMS -Decides if wants document -Issues request DRI DownloadRq DRI DownloadRs (with supporting doc as MIME attachment) Also possible are URL notification in message and user logs into sender s repository Sending instream 1 December

12 DRI - Why now Rise of Document Management Systems Cheap bandwidth XML/Webservices technology Desire to share documents Brokers developed repositories Allow them to share electronic documentation With carriers and with clients 1 December

13 Benefits of Implementation Eradicate rekeying of data More efficient business flow e.g. less errors due to reference miskeying Improved cashflow possible (faster payment cycles) e.g. moving from monthly to weekly settlement cycle 1 December

14 Benefits of Implementation Remove paper handling e.g. using DRI for electronic docs Benefits inure to all parties 1 December

15 Benefits of Accounting Process to All Parties Prepare TAs Prepare supporting docs Receive TAs and process Electronic responses Prepare FAs Receive FAs and process Electronic responses Process payments Sender (Cedent or Broker) Consistent requiremen ts across carriers due to defined standards Mailing cost and delays removed Electronic means to deliver supporting docs allows for better control Immediate notification of problems Ability to track progress of queries Reduced payment periods give better cashflow Common settlement process Automatic link to tech account entries Quick response to settlement items (approx 3 days in practice) Rejected items can go into next sett Balance can be agreed quickly and sent via normal settlement practice with business partner All info available to process this automatically Receiver (Broker or Carrier) Removes rekeying and attendant resource / errors Consistent delivery of data due to defined standards Automatic booking Able to raise queries quickly and track resolution Reduced payment periods give better cashflow Common settlement process Automatic matching to tech account entries Focus on problems only so can resolve settlement position quicker Can process agreed items quickly but still have option not to pay (e.g. credit issues) Balance can be agreed quickly and sent via normal settlement practice with business partner All info available to process this automatically Speed, operational efficiency, quality, accelerated cash-flow 1 December

16 Break 15-Minutes 1 December

17 September 2011 Poll Results What would provide the greatest operational efficiency improvements when streamlining your business processes? 54.5% 36.4% Automated account reconcilliation Major reduction in E&O Reduced/improved audit processes 6.1% 3.0% Higher quality data 1 December

18 September 2011 Poll Results Has your company considered implementing an ebusiness model? If not, why? We have implemented 23.3% 10% No, we don't see the ROI 6.7% 60.0% No, not enough understanding of the benefits No, there is no business support 1 December

19 September 2011 Poll Results Where do you think the greatest return on investment (ROI) will be as information is exchanged electronically with your business partners? 0% 58.1% 38.7% 3.2% Back office processes Underwriting processes Both Neither 1 December

20 September 2011 Poll Results Where do you see the benefit of ebusiness to your company? 30.3% 15.2% 54.5% Creates transactional efficiencies Improves data quality and depth Reduces data entry 1 December

21 September 2011 Poll Results What do you see as your largest impediment to change? 12.5% 31.2% Business process changes Organizational changes 40.6% 15.6% Technology changes Willingness to adopt Standards 1 December

22 Implementation Challenges Investment in web services expertise In-house versus Middleware 1 December

23 Implementation Challenges Multiple partners on different versions Middleware gateway is one solution Hubs and initiatives also starting to lead the way on enforcing version consistency Hubs can enforce central validation as well as offer single-connection multi-partner Initiatives bring implementers together to agree version/s to use policed by partners themselves All should use ACORD validation routines 1 December

24 Implementation Challenges Need to test/check ahead of linking to business partners (see TCF slides next) 1 December

25 Test first with ACORD Testing and Cerfication Facility (TCF) YOU Connectivity Security Standards compliance BUSINESS PARTNER And get trouble-free implementation with partners YOU BUSINESS PARTNER 1 December

26 Resources - Placing reference guide - Accounting and Settlement QRG Intro Overviews - Placing overview - Accounting and settlement (ebot) overview - edocuments overview - Global Placing Document overview Single dictionary for all RLC areas - DRI integration guide - DRI message specs Reference Guides Implementation guides Data dictionary Message specifications, schema, templates, mapped examples and validation files Document repository interface specifications - Placing Implem Guide - Accounting and Claims Implem Guide - Global Placing Document Implem Guide - Placing message - TechAccount message - ClaimMovement message - Settlement message - Bordereau message - Acknowledgement message ACORD Messaging Service framework specification Supports testing of: - Webservices - DRI standards - All RLC message standards Additional services you can buy - London market - USA - Europe Message framework specification Implementation roadmaps Member support Testing and certification facility Implementation reporting and publishing - Training videos - Training sessions - Answering queries - Workgroup collaboration - Publications on website - ACORD video on demand For details read the ACORD Procedures document downloadable from: Advisory services Online reporting of implementations 1 December

27 ACORD Backoffice (EBOT + ECOT) 1 December

28 Open Discussion 1 December

29 Lunch 1 December

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31 Two Blue Hill Plaza 3 rd Floor Pearl River, NY USA London Underwriting Centre Suite 1/3 3 Minster Court Mincing Lane London EC3R 7DD United Kingdom +44 (0) Wednesday, September 24, 2008