Electronic Accounting Guy Carpenters experience

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Electronic Accounting Guy Carpenters
experience

• 24th July 2008

Roy Maddison / Danny Hickey
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Why introduce electronic accounting?

• Guy Carpenter had successfully implemented
  Accounting and Settlement and ECF with Xchanging
  using DRI transmission.
• Although documents were sent electronically,
  transactional data was still being re-keyed by
  Xchanging.
• We wanted to explore full electronic messaging
  with a third party and held preliminary
  discussions with a number of reinsurers.

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Why introduce electronic accounting?

• Swiss Re in Zurich were selected as our preferred
  partner as they were already using forms of
  electronic messaging with other brokers.
• Swiss Re were also familiar to our software
  supplier, Trace Isys.
• A visit was arranged to Zurich by representatives
  of both Guy Carpenter and Trace Isys to discuss
  the project in greater detail.

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Why introduce electronic accounting?

• The Zurich visit covered-
• Swiss Res experiences of e-accounting to date
• Current and future state business processes
• Technology capability, codesets and standards
• Delivery/Implementation options
• Agreement of project plan and timescales
• Risks and Issues
• Legal and compliance requirements
• Was attended by both business and IT users.

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Implementation

• Following the Zurich visit, Guy Carpenter and
  Trace produced a Functional overview document to
  support our business case.
• The document included our proposals to-
• Introduce e-Accounting processing capability in
  TWINS for all classes of business
• Introduce monitoring tools for management of
  messages
• Build software with a look and feel similar to
  existing AS/ECF applications (Ease of use to
  end user)

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Implementation Additional Features

• As part of implementation, the following
  additional capability would be developed-
• Delivery of documents via e-mail to markets
  (using central inboxes)
• Run-off broking market solutions.
• Ability to switch off paper production for
  electronic markets

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Benefits

• Faster Processing Cycles
• Linking Technical closing to Financial settlement
• Improved query routines
• Improved reconciliation
• Quality of data
• Consistent process disciplines
• Audit controls
• Operational Efficiencies
• Reputation/Positioning

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Testing

• Following approval and development of the
  software by Trace Isys, a large volume of testing
  commenced-
• Rigourous testing of TWINS changes
• Initial hand-shaking messages with Swiss Re
• Testing with Swiss Re using pre-planned scenarios
• Ad-hoc testing as required between all parties
• Good co-ordination and flexibility essential
• Regression testing a must at all stages
• Include plenty of proportional treaty scenarios!

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Implementation

• Following successful testing, a one month pilot
  project was implemented using live data across
  all disciplines (premiums, claims, proportional
  treaties and fiduciary settlements)
• Successful pilot project then led to press
  release to media and full implementation from
  April 2008.

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Electronic Accounting How does it work?

• Technician processes transaction on TWINS (no
  change to previous processing screens)
• TWINS recognises that an electronic recipient is
  on risk and generates package to which the
  electronic technical message and back-up
  documentation (PDF, XLS, etc.) can be attached
• Message is sent by the processing technician.
• Swiss Re then review the technical message and
  either Agree, Query or Reject.
• Once the technical message has been agreed, the
  item can be included on the next financial
  settlement between Guy Carpenter and Swiss Re.

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Electronic Accounting How does it work?

• All messages are transmitted and monitored with
  new software which prioritises items according to
  status and internal SLAs.
• Traffic light system dictates priority of the
  item (Red, Amber, Green)

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Electronic Accounting How does it work?

• Any queries are automatically fed to -
• Our internal query monitoring system

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Electronic Accounting How does it work?

• Any queries are automatically fed to -
• The transaction ledger

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Electronic Accounting How does it work?

• Queries are then resolved via email/telephone if
  no further processing is required underwriter
  can change status from queried to accepted.
• However, if item requires cancellation /
  replacement, these transactions are then sent
  electronically to resolve issue.
• Upon agreement, item will be included in the next
  financial account message
• Once financial account message is agreed by Swiss
  Re, payment automatically follows within 5 days

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Electronic Accounting What advantages are we
seeing?

• Greater efficiency in delivering documentation
  and matching of cash
• Process is fully audited throughout
• Queries are now the responsibility of the
  processing technician fiduciary amounts cannot
  be settled until any technical issues are
  resolved. (i.e. queries are dealt with by the
  correct parties immediately)
• Once contracts are matched with Swiss Res
  system, our reference is bound with for all
  future transactions. (Will prevent queries as a
  result of unidentified contracts)
• Software has enabled us to implement e-mail
  delivery to other markets greater efficiency for
  technicians

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Electronic Accounting - Essentials

• Thorough testing
• Good project management
• Flexibility of all parties to arrive at business
  solution.
• Executive buy-in
• Disciplined team
• Selling the strategic vision to all
• Explore additional benefits and quick wins
• Media communication

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Any Questions?