The Ruschlikon Initiative is an accounting, settlement and claims workflow which replaces paper-based invoices with ACORD standard electronic messages. In this way, Brokers, Insurers and Reinsurers are able to process back office transactions with less manual intervention and in much faster cycles. Ruschlikon enables the acceleration of processing and payments by helping to identify and resolve queries much earlier in the process and enabling straight-through-processing. Using this process, companies have been able to reduce payment cycles by 15 days and more, which is better service for the clients and better funds management for the carriers as it relates to premiums and claims.
ACORD's EBOT (Electronic Back Office Transactions), ECOT (Electronic Claims Office Transactions) and messaging standards, along with common business processes and rules have enabled companies to:
- replace paper closings and statements with standard, structured data messages
- enhance service, improve speed, quality and the integrity of critical business data
- improve the financial agreement and settlement of premiums and claims
- ensure operational excellence by agreeing rules and protocols to deliver business benefit
- reduce costs through back office data integration and process automation
All of this means faster, more predictable and reliable cashflow, the elimination of unallocated cash, a significant reduction in errors and omissions and much faster query handling. In a business which is as much to do with funds management as it is appetite for risk, these benefits are enormous. What's more, implementing an electronic back office solution does not require extensive changes to existing IT: the options range from "Ruschlikon Lite" for the exchange of spreadsheets, to Message Management Tools (MMTs) exchanging standard XML messages to MMTs fully integrated with accounting, settlements and claims systems. None of the options can be considered expensive and many companies may already have a global licence for an MMT within their enterprise. Companies have not found the technology to be cost prohibitive and the ROI taking weeks rather than years. Ruschlikon does not require a whole new administration system; in fact, it can breathe new life and productivity into legacy systems.
Companies in the Asia region already benefitting from Ruschlikon include GIC Re of India, Swiss Re, XL Group and Aon Benfield. Other companies are working towards implementation now, and are working together rather than against each other, to share experiences and ideas, as a community.
"We have been working closely with the Ruschlikon Asia Pacific team to help establish the implementation group and enable deployment of the improved processes into a new region. The opportunity for collaboration, market participation and improved client service is immense and we are very excited about this," said Simon Squires, XL Group Regional CPO Manager and Chairman of London Non-Bureau Implementation Group.
Next week read about the first Indian company to implement EBOT.