International Underwriting Association members have seen premium processing times cut from weeks to just days in an initiative pioneered by the London company market.Stories of faster, more accurate and more efficient transactions were shared by companies and their broker trading partners at a Non Bureau Accounting Workshop event. The meeting discussed the benefits of using standard data messages for premium accounting transacted outside of the market’s central bureau operated by Xchanging.
Last year’s groundbreaking IUA company market statistics project revealed the scale of such non bureau business to be much greater than previously estimated. Around £7bn net premium is processed through direct relationships between insurers and brokers.
Towards the end of 2010 a group was formed to explore the use of ACORD e-BOT accounting standards for non-bureau premium processing.
Pioneer companies that have adopted this approach are now experiencing significantly faster settlement cycles with much quicker query resolutions, easier account reconciliation, the elimination of unallocated cash and lower administration costs.
One company revealed how items that used to take four weeks to complete the processing cycle are now being completed in just four days.
The Non Bureau Accounting Workshop was attended by a number of other companies and brokers and the project is now set to continue its expansion across the London company market.
IUA Chairman Stephen Riley said: “London’s future as a market depends upon its ability to service business in the most efficient ways possible; and to fit as seamlessly as we can within the global insurance process that is now a reality of modern life.
“Non-bureau accounting, based on the international data standards maintained by ACORD, delivers on both those scores.”
Plans are now being drawn up to support multinational companies operating in London extend the use of electronic standard messaging for premium processing to other global offices in Europe Asia, North America and Bermuda.
About the IUA
The International Underwriting Association of London (IUA) is the world’s largest representative organisation for international and wholesale insurance and reinsurance companies. It exists to promote and enhance the business environment for such companies operating in or throughLondon.
The IUA’s London Company Market Statistics Report shows that premium income for the company market in 2010 was £12.6bn net of commission or £16.4bn gross written premium. These results are based on a comprehensive survey of 57 companies.