The London market’s ambition to enable brokers globally to trade with it more easily has taken a significant step closer with phase one of e-Accounts now operational.
With e-Accounts now live, brokers can send and receive ACORD accounting and settlement messages, thereby dramatically improving a key link in the premium processing chain.
The initiative, part of the wider London market modernisation effort, was designed and implemented by Xchanging in partnership with the LMG. It enhances 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 £3.5m per annum in lost investment income.
Additionally, following the planned enhancements in 2012, brokers will 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 Miller, Aon, Guy Carpenter, Price Forbes, Lockton, Towers Watson and UIB are all now using e-Accounts with other major brokers committed to joining during Q4.
Steve Spicer, Head of Business Change for Miller said: “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 said: “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.”
Source : Xchanging
