Technology Support for Electronic Placing The best way to predict the future is to invent it Alan Kay – President, Viewpoints Research Institute Peter.

Technology Support for Electronic Placing

“The best way to predict the future is to invent it”

Alan Kay – President, Viewpoints Research Institute

Peter Holdstock, LMA, and Adam Stafford, Lloyd’s

IT Club, November 2007Peter Holdstock

• Introduction and Background

• Placing technology environment map

• LMA role in technology

• The Lloyd’s perspective

Agenda

Peter Holdstock

A Short History

Electronic Placing is not new.Individual initiatives - Broker portals, emails.Market initiatives - EPS, Wise, WIN, Ri3K, eReinsure, Kinnect Group initiatives – G6 Peer-to-Peer a tentative step into standardisation. skinny data set one-way messaging varying levels of document and data integration

Post G6 growing functionality (two-way, multi-section risks) increasing emphasis on direct messaging for STP other initiatives point towards direct messaging

Peter Holdstock

What is electronic placing?

Face to Face

Complex

Face to Face, Telephone, Electronic

Moderate

Electronic

Simple

Negotiation

Data Exchange

Electronic Placing

Components

Participants

Suppliers / Vendors

Benefits

Barriers

EnvironmentMap

Standards

ProcessData and

Documents

Technology

Roadmap

Evidence of Cover

InterchangeAgreement

Legal Aspects

Threats

Suppliers / Vendors

EnvironmentMap

Technology

Peter Holdstock

Electronic Placing Environment Map

Trading PlatformHosted full trading platform Controls process and data

Market RepositoriesG

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Submission / binding

Messaging HubOutsourced connectivity

and message management

P2P Message

Bro

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Electronic FormsHosted data entry and

message creation

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Portal


Market Repositories

Notifications

Peter Holdstock


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Peter Holdstock

DefinitionA web-based application offering users secure access to a trading environment which provides workflow and data management functionality via the internet.

Primary FunctionSecure on-line trading.

Additional ServicesStructured ACORD-compliant message exchange.Electronic links to market repositories.Electronic links to market services.

Peter Holdstock

Trading Platform

How does it work Brokers and Underwriters undertake the placing process

on-line by logging on to the platform May provide ability for Brokers and Underwriters to trade

using their own internal workflow using messaging. Process and data managed by the Trading Platform. May provide links to external information and services

ExamplesRi3K, eReinsure

Peter Holdstock

Trading Platform

Trading Platform

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Market DocumentRepositories

Notifications

Peter Holdstock

AnotherTrading Platform

Messaging Hub


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Peter Holdstock

DefinitionA software product that acts as a front door to the organisation, allowing business messages and documents to be sent and received by the company, using ACORD Web Services.

Primary FunctionData and document exchange.Sending and receiving ACORD standard placing messages.Shredding incoming XML messagesMaintenance of partner connectivity, and ACORD upgrades.

Additional ServicesAudit log of messages.Simple relational database and document repository.Error management functionality.Business statistics.

Peter Holdstock

Gateway

How does it work Links organisation to trading partners over the internet. Direct messaging capability consists of two elements,

data (RLC) and documents (DRI). Receives and validates incoming and outgoing messages

and manages communications protocols. Synchronises data and documents when they apply to a

single business message.

ExamplesAtos (WritePlace), IBM (Insurer Messaging Network), Perspective Technologies (onMessage), Trace Isys (TMMS), TriSystems InfoBahn (Universal Messaging Gateway), WebConnectivity (EnabledB2B, EnabledR2R)

Peter Holdstock

Gateway


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Peter Holdstock

DefinitionA web-based application offering users the ability to route messages between trading partners.

Primary FunctionOutsourced connectivity configuration.Secure delivery of ACORD RLC and DRI messages.Maintenance of partner connectivity, and ACORD upgrades.

Additional ServicesMessage validation.Control features to manage partners gateway downtime.Electronic links to market repositories.

Peter Holdstock

Messaging Hub

How does it work Used to route XML messages and supporting documents

between trading parties. Message validation may or may not be provided.

ExamplesAtos (WritePlace), Catex, IBM (Insurer Messaging Network), Kewill, SSP (Nexus), The Insurance Workplace.

Peter Holdstock

Messaging Hub


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DefinitionAn easy-to-use, dynamic front-end to business process.

Primary FunctionUsed to help organisations quickly participate in electronic placing without incurring major IT development expense.Provides a structured input form for a specific process.Converts to either an email or structure data message.

Additional ServicesData validation.Document production.

Peter Holdstock

Electronic Forms

How does it work Generally used in combination with a hosted gateway.

ExamplesAtos (WritePlace), Exari, IBM (eForm), The Insurance Workplace, TriSystems InfoBahn (Universal Messaging Gateway), WebConnectivity (Easy Placement, Starter Kit)

Peter Holdstock

Electronic Forms

Examples of the technology choices

Peter Holdstock

Vendors Landscape Analysis

Broker

Core System

U/W

Core System

Document

Management Workflow GatewayElectronic

Forms

Trading

Platform

Messaging

Hub

Market

Repositories

Acturis CGIGIOS

Alphabet Group TIW

Capita Total Documents Swordfish

Alphabet Group TIW

ATOS Origin eReinsure ATOS Origin WritePlace

ISO Market Wordings Database

Open GIMomentum

EurobaseSynergy

Capita Total Documents Swordfish

KnowledgeCenter

ATOS Origin IBM eForms Ri3K IBM Insurer Messaging Network

Xchanging IMR

Sequel (SBS)Sectornet

Intech Open Box

Documentum MicrosoftSharepoint

IBM Insurer Messaging Network

QKnow Kewill

Total Objects Global XP

ROOM Subscribe

Filenet QKnow Perspective onMessage

WCL Easy Placement

Total Systems Ultima

Sequel (SBS)Eclipse

Knowledge Centre

SourceCodeK2

Trace IsysTMMS

Trace IsysTWINS

Total ObjectsIMS

MicrosoftSharepoint

TriSystemsUMG

Xchanging Brokasure

Xchanging Genius

OpenTextHummingbird

WCL EnabledB2B

Internal infrastructure Shared infrastructure

ACORD standard RLC/DRI messagesPlacing data and documents

Resource: Electronic Placing Landscape v1.3

• Vendors sell products that combine components. E.g. Gateway and Electronic Forms.

• Brokers and Carriers choose combinations to suit organisation uniqueness.

• The market will not settle on a one-size-fits-all solution in the short term.

Peter Holdstock

Component Combinations

Fully-integrated message-enabled organisation

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P2P Message T

radi

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artn

ersTrading Platform

Hosted full trading platform Controls process and data

Market Repositories

Notifications

Peter Holdstock

Data and Documents fully integrated The ideal architecture for maximum benefit realisation.

Allows single desktop for all trading activity.Full electronic exchange of data and documents.

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Peter Holdstock

Platform/hub-enabled organisation


Notifications

Electronic trading using electronic forms and trading platforms.

No integration with core systems. Cheaper and faster to implement but does not allow full benefit realisation.

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Peter Holdstock

Traditional organisation


"Tradition is what you resort to when you don't have the time or the money to do it right."

Kurt Herbert Alder

LMA Role in TechnologyProject Objectives To create clarity in the market about the benefits and

implications of, and options for, the adoption of EP. To extend significantly the use of EP amongst market.

Project ActivitiesElectronic Placing Competitive Landscape.Electronic Placing Development & Adoption Roadmap.Further development of EP Implementation Guide.

GovernanceElectronic Placing Steering Group.Electronic Placing Implementation Group.Electronic Placement Data Standards Group.

Peter Holdstock

Evolving Standards Adoption Cycle

Peter Holdstock

Broker & CarrierImplementations

LMA Data Standards Group

LMA Implementation Group

Vendors / Products

ACORD

Products• New products will emerge. E.g. Business Intelligence.• Seamless interaction between products.• Frictional costs will be removed.

Standards• Translation between standards (ACORD/GDV)• Standards for ancillary processes. E.g. schedules.

Take-up and Adoption• More work during transition period. Requires vision. • Goal is Single Electronic desktop

Peter Holdstock

Some final thoughts…

Peter Holdstock

"Those who say it cannot be done should get out of the way of those that are doing it."

Joel Barker

Technology Support for Electronic Placing The best way to predict the future is to invent it Alan Kay – President, Viewpoints Research Institute Peter.

Documents

trading environment

data entry

electronic links

placing process

market services

skinny data

data rlc

data management functionality