Claims Movement Messaging April 2018 www.ruschlikon.com Welcome / - - PowerPoint PPT Presentation

Claims Movement Messaging April 2018

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Welcome / Agenda

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Welcome Simon Squires, XL Catlin What is Claim Movement message? Simon Squires, XL Catlin Claim Movement market benefits Emma Ford, Swiss Re Let’s get technical Enrico Alessandri, Swiss Re Demonstration Terry Calthorpe, Guy Carpenter Enrico Alessandri, Swiss Re Where does it fit in with CSRP? Brian Austin, Lloyd’s Q&A Lunch

Broker Broker

They contibute more to economic growth than patents and licences. They contibute more to economic growth than patents and licences.

Highly Effective Exchange for Data

Global Message Types Global Message Types

• Technical Account Messages –

replacing closing/ deal confirmation messages for premium & claims .

• Financial Account Messages –

replacing remittance messages for premium & claims.

• Claims Movement Messages –

replacing free format claims reserve and movement e-mails.

The Power of Standards

Value of Standards (C-Level Perspective)

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Improved Efficiency Improved Efficiency Enhanced Effectiveness Enhanced Effectiveness Increased Flexibility & Adaptabilty Increased Flexibility & Adaptabilty “I have had the opportunity to lead global insurance companies, brokers and service providers. ACORD data standards, forms and assets significantly enhanced

• perational

efficiency and effectiveness across stakeholders.” William Pieroni, President & CEO ACORD

Source: ACORD

Ruschlikon at a Glance

Steering Committee Steering Committee Implementation Group Implementation Group Marketing Group Marketing Group Technology Providers Technology Providers Regional Communities Regional Communities Brokers & (Re)insurers Brokers & (Re)insurers Process Automation Less re-work & Queries Enhanced Cash Flow Improved Controls Increased Efficiency Consistent approach, using global standards, driving worldwide coverage 6 Continents 40 Countries 100s of companies 1,000s of offices Data Standards Best Practices Data Standards Best Practices Cost Reductions Mission: Connect leading players of the (re)insurance industry to streamline back

• ffice processes using ACORD GRLC Standards

Value Proposition:

&

Technical Accounting Claims Settlement

Ruschlikon Value Chain

Placement Administration Net Settlement

Global Placing Message (GPM) Global Placing Message (GPM) TA (Closing Advice) FA (Financial Statement) CM (Claim Movement) ACK (Message Acknowledgement) TA (Closing Advice) FA (Financial Statement) CM (Claim Movement) ACK (Message Acknowledgement) Reconciliation Message (for netting and movement of funds) Reconciliation Message (for netting and movement of funds)

Endorsed on non- mandatory basis Ruschlikon closely working with London Market

Some GPM elements (re)used to set-up accounting structures (Post-Placement Message currently being piloted) Process Service Request (PSR) wraps FAs & ACKs for batched settlement

Key Focus

+ Best Practices

Ruschlikon Workflow

Ruschlikon Workflow

The Ruschlikon end-to-end process in the digital world

Sender Receiver

Create TA / CM Send TA / CM Message Receive TA / CM Message Query TA / CM Message Accept TA / CM Message Investigate and Resolve Receive L4 ACKN Create FA Send FA Message Receive FA Message Reject FA Message Accept FA Message Investigate and Resolve Settlement Receive L4 ACKN

<10 Days> <5 Days> <3 Days> <3 Days>

The Ruschlikon Process

Market benefits

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CM message

Minimise duplication Delivers structured data and attachments Enables Automation Creates clear audit trail Aligns open market with CSRP 2 way query message

Faster claims payment Optimises resources

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Claim Notifications using TA vs CM Messaging TA states “How Much?”, CM details what’s going on

Information Type Features Supported by Message Type Using TA Only (eBOT) In addition, with CM (eCOT)

Financials (the quantum) amounts Invoiced

settlement (paid) amounts requested (reference and target currency)

• verall claim development

100% amounts for current incurred & paid, outstanding balances (ref currency), both FGU and layer view

Layer specific financials

impact of claim retention & limit (with indexation), aggregates (AAD, AAL) and Previously Billed amounts

Reference Dates

Invoice Date (Message Creation Date) Settlement Due Date Movement As-Of Date Received from Cedent Date Message Creation Date

Claim Facts

Claim Reference(s) (Optional: Loss Name & Period) Loss Name, Loss Period, Loss location, Cause of loss, original policy details, Claim Status, Catastrophe ID

Claim Indicators

None First / Subsequent / Last Claim Advice, Claim Status change Reserve / Payment / Claim amounts changes Cross referencing CM <-> TA, TA <- TARIP, Message replacement indicator Coordination across layers (via as-of date / FGU amounts)

Optimisation Claim Handling: TA only vs CM Workflow

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Handling Aspects Features Supported by Message Type Using TA Only (eBOT) In addition, with CM (eCOT)

Validation of Financials (the quantum) Manual

Recalculate net amounts due, based

• n supporting docs and current

position of claim in layer at Invoice Date.

Automated (layer based, 100% amounts)

Validate new 100% Paid / Outstanding Balance position in layer net of AAD and indexed limits at As-Of Date, deduct Previously Paid, convert to net share and verify against TA net settlement balance, calculate RIP and verify against TARIP net settlement

Automated (FGU based)

Apply FGU amounts to claim and distribute across all participating layers, link other CMs from same movement to distributed amounts

Claim Adjudication Basis Individual Layer

Purely on a paid claim basis,, inconsistent reporting of Outstanding Balances (optional feature)

Overall Ceded Claim

System assisted based on claim incurred basis at movement As-Of Date, claim (section) status, advice sequencing, extensible to claim program

Process Steering Opportunities None

no steering from message contents

Prioritisation based on message contents

Advice Type (first/subsequent/last), Amounts Indicators (payment/reserve/amounts), Claim Status changes

Consolidation based on:

Message Cross referencing CM<->TA, TA<- TARIP, Message Replacement indicator Participating Layers (via as-of date / FGU amounts)

Faster Payment Turn-Around Time

Average TAT: 64% lower Median TAT: 48% lower

Increased Efficiency

Handling Effort: 40% lower

Fewer Reconciliation Issues

Claim notifications queried: 50% reduction

The Returns: Optimised Claim Handling with CM Messaging

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Message Management Console Fully Integrated Admin System

ACORD Integration Journey: The Maturity / Efficiency Curve

14 Reconcile Ledger Pre-populate Booking Full Transaction Validation

Individual TA / FA Message Handling Combined CM/TA Handling Leverage all CM/TA Data Structures Optimised Business Process

System Sophistication Efficiency increase

Swiss Re 2015 Swiss Re 2002 2009 2013 2011

LEGO Builder Phase

(leveraging msg relationships) FGU Amount s

Single LEGO Find matching LEGOs

(simple relationships)

LM TOM |CSRP Update – Ruschlikon Claims Group

London Market Target Operating Model (TOM) Programme 18th April 2018

Latest CSRP Status

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• Solid progress is being made towards the completion of full functionality
• Release 1.3 will be implemented on 26th November and will add bulked claims as a further

Claim Movement submission type

• Proportional Treaty is targeted for March 2019 and DXC have switched to an agile/prototyping

methodology to design the carrier agreement process and internal DXC business procedures

• Prototyping is also being used to prove technical interfaces with legacy mainframe services
• The standards upgrade to 2016.10 will also implement in March 2019. Engagement with

brokers to discuss low level detail items has begun

• Management of the service will move to “business as usual” at some point in 2019
• Broker adoption will be tackled with two onboarding periods this year and further onboarding

will be scheduled during 2019 and this will also become “business as usual”

• Although volumes remain low, with the imminent introduction of CSRP changes in the software

products used by major brokers a step change in adoption is expected

Alignment to Ruschlikon Standards

• The objective of alignment to the Ruschlikon standards remains one of the key CSRP Design

Principles

• The brokers we are engaged with continue to hold us to that principle
• The second phase of Proportional Treaty will see Ruschlikon standard TA’s being sent to

carriers

• The CSRP design requires brokers to submit Claim Movement messages to achieve claim

processing via DXC

• However, Claim Movement messages will not be used in the Proportional Treaty

implementation; TA submissions will have supporting cedant documentation included to support the carrier agreement process

• Post carrier agreement to the Treaty Statement DXC will capture data and this will be output

to carriers in a new “Large Loss Details” advice, the design of which is being developed

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Q&A

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Brian Austin SME LM TOM / CSRP Simon Squires International Middle Office, International Platform Office Insurance XL Catlin Terry Calthorpe Team Manager, Client Support Services Guy Carpenter Emma Ford Expert, Client Accounting Services Swiss Re Enrico Alessandri Systems & Processes Expert Swiss Re