London, 05/02/13 – Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON), today announces its continued support of the Ruschlikon Initiative, as new data suggest that Ruschlikon is having a positive impact across the industry.
The Initiative, which aims to streamline and automate back office processes, encourages re/insurers to utilize ACORD messaging – a common data standard that allows more seamless communication between counterparties.
In 2012, market-wide cooperation resulted in an increase in global messaging volumes to around 700,000, compared to 215,000 messages in 2011. For 2013, messaging volumes are expected to rise to 2.5 million.
Around 30 companies are committed to implementing the Initiative’s Global Re/insurance Best Practices – Accounting, Settlement and Claims compliant solutions, which cover commercial and reinsurance business across five continents and more than 40 countries, including the London Market.
With a growing number of participants, the Ruschlikon Initiative is contributing to reduced operational costs and enhanced client service; estimates suggest that participants’ administration costs can be reduced by up to 30 percent.
Ian Summers, Aon Benfield’s Chief Information Officer in the UK, and Chair of The Ruschlikon Steering Group, said: "The reported business benefits make a compelling case for joining the Ruschlikon Initiative. Premiums are settled typically 15 days earlier than via standard processes, unmatched cash is eliminated, and administration costs are reduced by around 30 percent on average, which together better enable the delivery of enhanced client service. In an industry known for its lack of automation, the volumes clearly demonstrate a market that is fully receptive to change. Such industry initiatives need time and commitment; despite the considerable savings potential, mutual exchange capabilities need to be synchronized and processes aligned. The advantages are increasingly acknowledged by decision makers, more on the business side than in the IT department, as the technology is no longer a hurdle."
Further acceleration of the Ruschlikon Initiative is envisaged for 2013, with potential new participants having been identified and the development of dedicated workshops at key industry conferences.