© Xchanging 2007 A&S Repository The next step forward in premium processing Date: 13/03/07 Mark Barwick, Project Manager, LMBC Geoff Kennard, Xchanging.

© Xchanging 2007

A&S Repository

The next step forward in premium processing

Date: 13/03/07

Mark Barwick, Project Manager, LMBC Geoff Kennard, Xchanging

© Xchanging 2007

… this is a user template2

Agenda

1.What is Electronic Premium Accounting (EPA)?

2.Background

3.Three EPA routes – Email, Direct Load, DRI

4.Scope of A&S Repository Release 2 & 3

5.Benefits of EPA

6.Further Information & Rollout

7.Volumes and usage to date

8.Demonstration of Direct Load

9.Questions

© Xchanging 2007


Electronic Premium Accounting – What is it?

“Electronic premium accounting is the submission of slips, PAN’s, policy wordings and supporting information by the broker to Xchanging for processing”

• DRI

• Email

• Direct Load

© Xchanging 2007


Background

FEB 06 MRPO Provide Xchanging with letter of intent to proceed

FEB 06: Xchanging produce Project Initiation Document

MAY 06: Email Submission start

MAY 06: Business Design agreed

JUNE 06: Functional Specification agreed

AUG 06: Market Acceptance Testing completes

SEPT 06: Direct Load submission start

JAN 07: DRI submissions start

© Xchanging 2007


Common Characteristics of all EPA Options

• Prepare PAN’s, Signing slips and supporting documents

• Prepare Work Order

• Presentation date rules the same as paper

• All documents stored in the Insurers Market repository (IMR) and available to all insurers

• Queries managed via the Urgent Resubmissions process – presentation date kept

• Can use it with or without delinking

• BSM/ IPCBSM and CSV file

• UMR – Unique, consistent, correct format

© Xchanging 2007


EPA Scope

In Scope

• Marine, Non-Marine, Aviation

• Original Premiums, FDO’s, AP’s and RP’s

• Stage One, Stage Two, S&A

• Slip Policies, PPS, Broker produced wordings, Express Check

Out of Scope (Release One)

• Proportional Treaty processing

• Simultaneous settlement items and Reinstatements

• Claims

• LORS

• Mid term market change

• Mid term broker change

• Aviation Vertical placements

• Multi-section slips with different markets per section

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Email

• Was introduced before Direct Load and DRI available to test process

• Only used by a limited number of parties

• Work Order provided as an Excel document

• More work for broker and Xchanging than either Direct Load or DRI

• Going forward some Release 2 and 3 functionality will not be included

• Not recommended for new starters

• Audit and control risks

• To be withdrawn at the end of 2007

Not Recommended

© Xchanging 2007


Direct Load

• Internet based application available free of charge to all LMBC members

• Lets brokers try out the process without major spend on technology

• Work Order data captured in the application

• Will be enhanced during 2007 for releases 2 and 3

Preferred

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DRI – Document Repostiory Interface

• What is it? - An ACORD standard developed to share documents with others

• Uses XML technology

• Used for A&S, ECF, ELPAN2 and G6 Placing Pilot

• Work Order provided as a Technical Account message

• Implementation options

– Build it yourself

– Via your Software house

– Via third party managed repository

Preferred

© Xchanging 2007


Future Releases

Release 2

• Support the processing of Urgent transactions

• Lloyd’s reinstatements (Single UMR)

• Email confirmation of receipt of Work Order

• Store all DRI Metadata

Release 3

• Proportional treaty

• Lloyd’s Reinstatements - multiple UMRs

• Simultaneous Settlement of Work Packages involving more than one UMR

• Lloyds Binder APs/RPs for simultaneous settlement

• Utility Repository

• Additional DRI functions for download and search

• Direct Load Entry of Metadata

• DRI Change metadata attributes

© Xchanging 2007


Beyond 2007

• The MRG Roadmap sets out two key A&S Projects, ELPAN2 and eBOT

• Benfield providing the project management for these projects on behalf of the LMBC's Market Reform Strategy Group

• Both use ACORD Technical & Financial Accounts foe the submission of accounting data

• Slips and other documents still provided as images in a repository

eBOT

• eBOT – Aimed at the non-bureau market

• Live with two brokers and six carriers

ELPAN2

• ELPAN2 – Covers all bureau insurers

• Aon go live with Release 1 mid 2007, Release 2 end of 2007

• Other brokers to followSource: LMBC

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Benefits

• Faster turnaround times - “van time” eliminated.

• DRI functionality consistent with ECF and Placing Pilot

• Insurers can view all documents

• Utility function – watch this space

• Faster premium payment

• Faster query resolution

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Getting Started

Have you signed the repository rules?

© Xchanging 2007


Who has signed up? (as at 12th March 2007)

Alston Gayler & Co Limited Aon ARB International Limited BDBBenfield Besso Butcher Robinson and Staples International Limited Citynet Insurance Brokers Contractsure Ltd Cooper Gay Corrie and Partners Corrie Bauckham Batts Limited Glencairn Ltd Guest Krieger Limited Guy Carpenter Harman Kemp North America Ltd Harman Wicks and Swayne International Ltd

Harman Wicks and Swayne Limited HSBCH.W. Wood Limited JLT Group LtdKite Warren & Wilson Ltd Lockton Companies International Limited London Market Insurance Brokers LimitedMarsh Meridian Risk Solutions Miller N.I.B (UK) Limited NMB (Newman Martin & Buchan Limited) Price Forbes & Partners Limited SBJ Limited Stow and Croton Limited Towers Perrin Claytons Tyser & Co Ltd Willis Ltd

Source: Market Reform Website: http://www.marketreform.co.uk/claims_rep_rules.htm

© Xchanging 2007


Getting Started

• Have you signed the repository rules – See LMBC 13/2007 issued on 29th January.

• How will you store PAN’s and slips?

• Will you use Direct Load or DRI? Speak to your software house

• Documentation - http://www.marketreform.co.uk/a&s_pubs1.htm

– LPAN completion guidelines

– Email/ Direct Load/ DRI User guides

– Stage One Accounting checks

© Xchanging 2007


What is your software house doing?

• Brokasure Desktop – DRI solution available and live with Cooper Gay, NMB

• Brokasure Enterprise – currently being tested by Lockton

• Trace – Benfield, Guy Carpenter, Miller and Harman Wicks and Swayne live

• Total Objects – Build under way, expected to complete mid year, Rollout from Q3.

• SSP – No firm plans as of yet

• Morning Data – Build starting soon, system test Q2, MAT from Q3, Rollout Q4

• TIW (The Insurance Workplace) – A third party managed repository service with DRI integration. System Testing Q1, MAT and go live Q2. Tyser signed up

• Sequel – Build underway, MAT targeted for end of Q2/Q3

• GPM – Will integrate their application with TIW

• DataPro – Waiting for their clients to confirm their requirements

If your software house is not listed here do you know their plans?Source: LMBC

© Xchanging 2007


Rollout Approach

• Brokers divided up into implementation convoys

• CRM’s will offer brokers an implementation slot

• Aim to have majority of brokers connected by year end

• LMBC will monitor feedback from the CRM’s and assist where required to resolve issues

• If you are developing DRI then consider using Direct Load in the short term

• If you are a niche broker make your CRM aware that you require Release 2 and Release 3 functionality to process any volumes

© Xchanging 2007


Geoff Kennard

© Xchanging 2007


Common Issues (1)

• Training and testing are crucial to a smooth and successful implementation

– Common submission problems

– Training & testing enhanced with common learning

• Don’t underestimate the cultural change within your organisation

– For example broker technicians repeated hitting send on DRI creating multiple packages

• Remember to try and replicate the current paper process – if it happens on paper then chances are it should continue to happen in an electronic environment

– e.g. multilayered risks written on one slip should continue to be sent in as one work package (per paper)

• The Work Order is key to getting your work processed quickly and correctly

– get the 8 fields correct

– However we will not reject if they are wrong

© Xchanging 2007


Common Issues (2)

• Resolution of queries and rejects require the workpackage to be ‘returned’ to the control of the broker rather than resolution and amendment of queries via the phone on paper

– it will feel like more queries are being raised but this isn’t the case, and this process has a more robust audit trail and allows for rejects to be resolved much quicker than on paper via vans

• Expect the backend output to look different and make sure the technical accounting teams are prepared for a different output from XIS

– our implementation testing helps with this

© Xchanging 2007


Premium Submissions Summary

Premium transactions by day with weekly average

0200400600800

100012001400

03-Ju

l

17-Ju

l

31-Ju

l

14-A

ug

28-A

ug

11-Sep

25-Sep

09-O

ct

23-O

ct

06-N

ov

20-N

ov

04-D

ec

18-D

ec

01-Ja

n

15-Ja

n

29-Ja

n

12-Feb

Prem

ium

Tra

nsa

ctio

ns

Daily

Weekly Average

• 25% of LPANS as at end of January

•10 Brokers submitting electronically

Source: Tracker data

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Direct Load Demonstration

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© Xchanging 2007 A&S Repository The next step forward in premium processing Date: 13/03/07 Mark Barwick, Project Manager, LMBC Geoff Kennard, Xchanging.

Documents

xchanging slide

user template email

user template background

user template agenda

user template epa scope

lmbc slide

repository release

direct load submission