Transcript Document

Accounting & Settlement
A Year of Progress & Improvement
March 2009
Rob Myers
Production Director, UK Insurance
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Agenda
Key facts
1
Improvements are evident
It’s a journey, not a destination
2009 Focus areas
2
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Do you remember when…..
Central Settlement
0ccurred 0nly once
a month ……
….. in only 3 currencies
£
US$ Can$
The “Bureau” Service Level
was 10 Days to Process ….
…. and Terms of Credit were 90+ days
3
…..how things have changed !
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
A&S - where are we now?
14
885,739
1
Different Daily Settlement Currencies
Premium transactions processed in 2008
85%
£43,661,166,907
The sum of all premium & claim accounting transactions processed in 2008
Of all premium submissions delivered electronically
£24,289,975, 306
1 in 3
The sum of all premium accounting transactions processed in 2008
Company customers domiciled outside UK
Lloyd’s & Company Market processing
4
…..in a much better place and still moving forward
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Underwriters want their premiums faster …..
“It is estimated that the investment income for each
day that premium is received earlier, amounts to
approximately £600k for the Lloyd’s market.”
Source: Premium Payment Improvement Working Group Report, July 2008
…. but falling interest rates reduce this prize & change the game
5
…..Xchanging has delivered part of the answer
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Underwriters want their premiums faster …..
Transactions are being processed quicker
– Consistently <3 days to process query free work over past 3 months
Signed Lines and Technical Accounts are being notified quicker
– 50% of Stage 1 signings notified within 30 days of inception in January
Triage of premium submissions is in place
– 90% of High Value Premium (LPAN >£500k) processed same or next day in January
Premiums are being paid to underwriters faster
– 43% of value settled in January was paid on/before SDD (28% avg. in 2008)
Source: JMD SIS
….so more emphasis on improved cash flow, reduced credit risk &
release of working capital
Lloyd’s processing
6
…..Xchanging has delivered part of the answer
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Premium Processing in January & February 2009
98,508
Value Processed to Lloyd's (converted to GBP)
108,126
Transaction Volumes Processed for Lloyd's
£3.50bn
2009
2008
2009
10% more Production
£2.53bn
2008
38% more Value
Funds movement still relies on broker committing to make payment
Lloyd’s processing
7
…..Xchanging has delivered part of the answer
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Premium Processing in January & February 2008
Premium Processing - Elapsed Time - Lloyd's
(including queried and rejected submissions)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15+
CALENDAR days to process
2008 Volume
Lloyd’s processing
8
2008: one week to process 75% of all transactions
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Premium Processing in January & February 2008
Premium Processing - Elapsed Time - Lloyd's
(including queried and rejected submissions)
100%
90%
80%
82%
73%
70%
60%
50%
40%
39%
30%
27%
20%
10%
16%
12%
0%
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15+
CALENDAR days to process
2008 Volume
2008 Value
Lloyd’s processing
9
No prioritisation; Value profile matched Volume profile
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Premium Processing in January & February 2009
Premium Processing - Elapsed Time - Lloyd's
(including queried and rejected submissions)
100%
90%
80%
82%
73%
70%
60%
50%
40%
39%
Half the time
30%
27%
20%
10%
16%
12%
0%
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15+
CALENDAR days to process
2009 Volume
2008 Volume
2008 Value
Lloyd’s processing
10
Faster…. 40% of volume in half the time
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
Premium Processing in January & February 2009
Premium Processing - Elapsed Time - Lloyd's
(including queried and rejected submissions)
100%
92%
94%
86%
90%
Twice the Value
79%
80%
72%
65%
70%
60%
51%
50%
41%
5 Days Faster
40%
82%
73%
39%
30%
27%
20%
16%
10%
12%
0%
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15+
CALENDAR days to process
2009 Volume
2008 Volume
2009 Value
2008 Value
Lloyd’s processing
11
Prioritisation of High Value and Non-Delinked self evident
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
How has the IMR helped?
Electronic
Paper
Elapsed Working Days
BUT……. more queries
being raised on electronic
submissions
1-2 days faster
Week Commencing
Regular A&S Production
Forums to communicate
common submission
issues
2009 focus on driving
down query / rejection
rates
Lloyd’s processing
12
Electronic Submissions are being processed 1-2 days faster than Paper
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
More transparency than ever
https://insuranceportal.xchanging.com
Lloyd’s & Company Market processing
13
Online Service Status updated daily
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
What a difference a year makes …..
XIS processing time improved by 35% (or 1.5 work-days)
– 2.8 in 2009; 4.3 in 2008 (weeks 1-9, query free submissions)
– High Value Premium prioritised & processed within 2 days
Significant value for the Market from investment in electronic processing and global
balancing of resources
– Xchanging operating 18 hours a day; vans have been “crushed”; service is faster
Underwriters in receipt of exposure and technical accounting information much earlier
– 50% of premiums notified within 30 days of inception during January
A 50% improvement in premium payment by Settlement Due Date
– 28% average for 2008; 42% achieved in January 2009
Lloyd’s processing
14
….. Market Reform is working !
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Focus areas for 2009 …..
Improve submission query process
–
Redefine what customers should expect
–
Target specific brokers
… in order to drive greater consistency and reduce rework
Address functionality gaps in IMR
–
Access Control solution
… in order to drive A&S IMR usage to 100%
e-Accounts
–
Implement ACORD messaging
…to automate further process steps, increase data accuracy and reduce rework
–
Implement Accounting Splits Service
…to make London more attractive to brokers and reduce rework
15
….. Market Reform is working !
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.
© Xchanging 2008, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.