Xchanging, a provider of processing services to the banking and insurance industries, has signed a contract with London insurance market associations - the International Underwriting Association of London (IUA) and the Lloyd's Market Association (LMA) to build an e-Accounts capability on the existing infrastructure.
According to Xchanging, the e-Accounts capability will deliver a number of benefits to insurers as well as brokers. It will enable earlier settlement of cash items through faster, standardized processes, increasing the flow of business to the London market.
It will allow brokers to submit premium closing data to Xchanging using industry standard ACORD messages and largely eliminate rekeying data by Xchanging. It will reduce the work load for brokers in reconciliation of accounting entries and support a common accounting process for bureaux / non-bureaux premiums.
This capability will further enhance the electronic submission of accounting entries to Xchanging by brokers and insurers. As part of the contract, Xchanging will also provide a Carriers’ Accounting Entries service. As a result, the creation of premium accounting splits, which is currently done by brokers, will be managed by Xchanging.
In 2005, Xchanging and the London market associations (IUA, LMA and the London Market Insurance Brokers’ Committee) embarked upon a program to move the London insurance market from a paper-based to an electronic environment for improved efficiency and lower costs. The key technology component that underpinned this initiative was a document management system called the Insurers’ Market Repository (IMR). The new e-Accounts capability is part of the IMR.
David Matcham, CEO of the IUA, said: This implementation will further streamline the premium accounting process with benefits for brokers and our members alike. It will be another significant milestone in our continuing modernization of the London market
David Gittings, CEO of LMA, said: This is another key step in making the London market more attractive for brokers to deal with.