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Reinsurance Accomplishments Reach Around the World

 

Click the image to watch Maggy Leon discuss the progress made in GRLC.

2012 is more than half over and the year has been filled with accomplishments from all departments within ACORD. We continue our review this week with a look at the Global Reinsurance community.

In the first half of the year, the Global Reinsurance and Large Commercial (GRLC) program took major strides in advancing reinsurance Standards. One big accomplishment was ACORD's Efficiency in Reinsurance Operations Event in Hartford, Connecticut. Representatives from 10 leading ceding companies came to see how their peers' e-Business implementations improved efficiency.

“This event successfully focused cedents attention on how ACORD standards can make their business more efficient,” said Maggy Leon, ACORD Reinsurance Director of Implementation Services. “We’re getting cedent companies to the table to discuss how electronic transactions allow companies to cut costs, decrease turnaround time and reduce the amount of errors and problems from misinterpreted information that used to come on paper.”

Another key development was the joint meeting of the Ruschlikon Steering Group and the U.S. Reinsurance Committee held at the ACORD LOMA Forum in May. The group discussed many issues relevant to both communities and made real progress. They reached an agreement to produce a global vision for the reinsurance industry; updated their rulebook; agreed to promote its use as a best practice; and changed its name to Global Reinsurance Best Practices – Accounting, Settlement, & Claims to reflect that the book is used globally.

Another key development from that meeting was an agreement to expand the use of the proven ACORD Accounting, Claims and Settlement standards into the Asia Pacific region. The group committed to establish a new community to drive implementation in markets such as Australia, China, Japan, New Zealand and Singapore. A number of ACORD member companies already have a presence in the Asia Pacific area.

“As the take-up and penetration of insurance in the region grows, the adoption of ACORD Standards will help the Asia Pacific market benefit from the same kinds of improvements seen in other parts of the world. It is also essential since many of our members operate globally and ACORD needs to do likewise to support them.” said Mark Barwick, ACORD GRLC Program Director.

The London market has also been active in promoting Accounting & Settlement. Four trading partnerships have been established with several more due in the second half of this year. Over 50 people from 30 different brokers and reinsurers came together for a recent workshop. Other developments in the London market include the adoption of ACORD messages for endorsements and contract changes. All Lloyd’s syndicates, 30 reinsurance companies and the 30 leading brokers are now handling their endorsements in this way and in June a million ACORD messages were transmitted via the London Message Exchange.

The Bermuda market is making strides on embracing the GRLC standards as well. Some Bermudian companies are already using GRLC standards and others are working on business cases for implementations. During the first half of 2012, the Bermuda Ruschlikon Steering Committee (BRSC) sponsored implementation presentations by members of the London and US communities as well as vendor demonstrations.