The London Insurance
Marketis to move
to
a two way, one to many electronic trading platform to help it
keep up with rival markets.
Atos Origin, who is piloting the system, said the technology was
designed to enable the London Insurance Market to meet
regulatory challenges and remain competitive against emerging
insurance markets, such as
Bermuda.
The 300-year-old London Insurance Market currently places around
400,000 large scale commercial insurance policies per year,
generating total gross premiums of £22bn.
Today, all the steps in the placement process are carried out
through a combination of fax, email and face-to-face exchanges.
While the essence of the London Insurance Market lies in the
placing of complex bespoke insurance deals, which would be
difficult to negotiate other than face-to-face, there are numerous
processes in the chain that are low in value and simple to manage
electronically, said Atos.
The Atos solution, known as Writeplace, will be capable of
handling these exchanges, reducing processing costs and freeing up
brokers’ and underwriters’ time.
Writeplace is based upon a secure electronic trading platform
that enables brokers and underwriters to exchange Acord standard
XML messages and related documents by connecting their systems via
a message hub.
Writeplace enables messaging exchange between back-office
systems, email, browsers, mobile phones and PDAs, covering the full
range of required delivery options.
Atos said the browser-based design enables participants to
maximise the returns on their existing investment in systems,
expanding upon existing peer-to-peer implementations to allow
connectivity with all market participants.
With minor customisation, the platform can also be used for
global trading with other Insurance Markets.
Atos Origin will initially configure its existing message hub
technology for London Market purposes and connect it with Sequel
Business Solutions’ broking and underwriting applications.
This will demonstrate the one to many, two-way messaging process
upon which the pilot will be established.
Atos said the pilot implementation will connect other broker and
insurer applications as required, as well as use the browser
interface, and will implement electronic endorsement and closing
business processes, with other processes in the placing cycle
coming on-line soon after.
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