Claims Movement Messaging April 2018 www.ruschlikon.com
Welcome / Agenda 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 Terry Calthorpe, Guy Carpenter Demonstration Enrico Alessandri, Swiss Re Where does it fit in with CSRP? Brian Austin, Lloyd’s Q&A Lunch www.ruschlikon.com 2
The Power of Standards They contibute more They contibute more to economic growth to economic growth than patents and than patents and licences. licences. Broker Broker Global Message Types Global Message Types • Technical Account Messages – replacing closing/ deal confirmation messages for premium & claims . • Financial Account Messages – Highly replacing remittance messages for premium & claims. Effective • Claims Movement Messages – replacing free format claims reserve Exchange and movement e-mails. for Data
Value of Standards (C-Level Perspective) 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 operational efficiency and effectiveness across stakeholders.” William Pieroni, President & CEO ACORD 4 Source: ACORD
Ruschlikon at a Glance Value Proposition: Data Standards Data Standards Best Practices Best Practices & Increased Improved Enhanced Less re-work Process Cost Efficiency Controls Cash Flow & Queries Automation Reductions Mission: Technical Accounting Connect leading players of the (re)insurance industry to streamline back Claims office processes using ACORD GRLC Standards Settlement Implementation Implementation 6 Continents Consistent Group Group approach, using (Re)insurers (Re)insurers Committee Committee Brokers & Brokers & Steering Steering 40 Countries global Marketing Group Marketing Group standards, Technology Technology 100s of companies driving Providers Providers worldwide 1,000s of offices coverage Regional Regional Communities Communities
Ruschlikon Value Chain Ruschlikon closely working Endorsed on non- Key Focus with London Market mandatory basis Placement Administration Net Settlement + Best Practices TA (Closing Advice) TA (Closing Advice) FA (Financial Statement) FA (Financial Statement) Global Placing Message (GPM) Global Placing Message (GPM) Reconciliation Message (for Reconciliation Message (for CM (Claim Movement) CM (Claim Movement) netting and movement of funds) netting and movement of funds) ACK (Message ACK (Message Acknowledgement) Acknowledgement) Some GPM elements (re)used to set-up Process Service Request accounting structures (Post-Placement (PSR) wraps FAs & ACKs for Message currently being piloted) batched settlement
Ruschlikon Workflow
Ruschlikon Workflow The Ruschlikon end-to-end process in the digital world
The Ruschlikon Process Create Create TA / CM FA Sender Send Receive Receive Send FA TA / CM L4 ACKN L4 ACKN Message Message <5 Days> <3 Days> Investigate Investigate Settlement and Resolve and Resolve Query Reject FA TA / CM Message Receiver Message Receive Receive FA <3 Days> <10 Days> TA / CM Message Message Accept Accept FA TA / CM Message Message
Market benefits Minimise duplication Delivers 2 way query structured message data and attachments Faster claims payment CM message Optimises resources Aligns open Enables market with Automation CSRP Creates clear audit trail www.ruschlikon.com 10
Claim Notifications using TA vs CM Messaging Information Features Supported by Message Type Type Using TA Only In addition, with CM (eBOT) (eCOT) Financials amounts Invoiced overall claim development settlement (paid) amounts requested 100% amounts for current incurred & paid, outstanding balances (ref currency), (the quantum) (reference and target 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) Movement As-Of Date Received from Cedent Date Settlement Due Date Message Creation Date Claim Reference(s) Claim Facts Loss Name, Loss Period, Loss location, Cause of loss, original policy details, Claim Status, Catastrophe ID (Optional: Loss Name & Period) None First / Subsequent / Last Claim Advice, Claim Status change Claim Indicators Reserve / Payment / Claim amounts changes Cross referencing CM <-> TA, TA <- TA RIP, Message replacement indicator Coordination across layers (via as-of date / FGU amounts) TA states “How Much?”, CM details what’s going on 11
Optimisation Claim Handling: TA only vs CM Workflow Handling Features Supported by Message Type Aspects Using TA Only In addition, with CM (eBOT) (eCOT) Validation of Manual Automated (layer based, 100% amounts) Financials Recalculate net amounts due, based Validate new 100% Paid / Outstanding Balance position in layer net of AAD and indexed limits at As-Of on supporting docs and current Date, deduct Previously Paid, convert to net share and verify against TA net settlement balance, calculate (the quantum) position of claim in layer at Invoice RIP and verify against TA RIP net settlement Date. Automated (FGU based) Apply FGU amounts to claim and distribute across all participating layers, link other CMs from same movement to distributed amounts Claim Individual Layer Overall Ceded Claim Adjudication Purely on a paid claim basis,, System assisted based on claim incurred basis at movement As-Of Date, claim (section) status, advice inconsistent reporting of Outstanding sequencing, extensible to claim program Basis Balances (optional feature) Process Steering None Prioritisation based on message contents no steering from message contents Advice Type (first/subsequent/last), Amounts Indicators (payment/reserve/amounts), Opportunities Claim Status changes Consolidation based on: Message Cross referencing CM<->TA, TA<- TA RIP, Message Replacement indicator Participating Layers (via as-of date / FGU amounts) www.ruschlikon.com 12
The Returns: Optimised Claim Handling with CM Messaging 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 13
ACORD Integration Journey: The Maturity / Efficiency Curve Efficiency increase Optimised Business Process Swiss Re 2015 Leverage all CM/TA Data Structures 2013 Single LEGO Combined FGU CM/TA Amount Handling s 2011 LEGO Builder Phase (leveraging msg relationships) Individual TA / FA 2009 Message Handling Find matching LEGOs Swiss Re (simple relationships) System 2002 Sophistication Message Reconcile Pre-populate Full Transaction Fully Integrated Management Ledger Booking Validation Admin System Console 14
LM TOM | CSRP Update – Ruschlikon Claims Group London Market Target Operating Model (TOM) Programme 18 th April 2018
Latest CSRP Status • 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 16
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 17
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