XCHANGING Introduction to Global Insurance Services 10 July 2014
Adrian Guttridge - Executive Director of Insurance Services Introduction Introduction to Insurance Services Xchanging Claims Go to Market Offerings 2
INTRODUCTION TO INSURANCE SERVICES Max Pell Managing Director Insurance
BUT IT S NOT JUST THE LONDON INSURANCE MARKET OUR GLOBAL INSURANCE CLIENTS Global Strength and Solutions Provider of insurance services & software, not products Focus on commercial Property, Casualty & Workers Compensation Globally balanced work-force Mission critical services supporting Headline News events 4
XCHANGING S INSURANCE OPERATIONS Over 2,500 insurance practitioners amongst our 8,000 employees * Insurance operations in 3 of our key countries Xchanging s Principal Locations UK France Germany Italy Spain India Malaysia Australia Japan Americas Singapore LONDON BASILDON Paris Hof Munich Milan Madrid BANGALORE SHIMOGA Kuala Lumpur SYDNEY MELBOURNE Tokyo Chicago New York Singapore CHATHAM GURGAON Adelaide Bermuda FOLKESTONE SOLAN Brisbane ROMFORD Chennai LEICESTER Mumbai Preston Glasgow Basingstoke * based on average monthly numbers, 2012 Indicates Insurance Delivery Centre locations Key insurance contracts Insurance differentiators 1. XIS (policy admin, accounting & settlement) 2. XCS (claims) 3. XBS (broking: Aon & Cooper Gay) 4. NSW government (Workers Compensation) 5. Victoria government (Workers Compensation) Innovation (Netsett, X-presso, etc.) Complex processing and deep insurance knowledge Successful London Market platform with broad customer base Both business processing and modern insurance software Move beyond London Markets to General Insurance in key geographies 5
GLOBAL INSURANCE STRUCTURE Adrian Guttridge Executive Director Insurance Services GO-TO-MARKET LINES OF BUSINESS DELIVERY SUPPORT SERVICES David Brooks Global Director Nick Lamb MD XBS John Niblett CIO Paul Carson Finance Director Julie Lynch Marketing & Relations Director Max Pell MD XIS & XCS Beverly Stone UK Insurance Operations Director Lindsay Healy Director of Strategy & General Legal Counsel Jenna Richardson Head of Insurance USA Paul Bermingham Claims Director Manoj KP Head of Insurance India Jenny Coe HR Director Steve Reid Operations BPO General Diego Ascani Head of Insurance Australia 6
INSURANCE SERVICES THE XCHANGING ADVANTAGE We Are 2500+ FTE in Insurances Sector 300+ Insurance Customers 10+ years of experience in Insurance Industry Processed over 1.2 million premium transactions, notified nearly 950,000 claim advices in 2013 Over 32 million messages passed through Xchanging Messaging Hub services during 2013 including 6 million ACORD messages. Over 35 million market documents are stored in our Document Repository More than half a billion IMR page hits annually We serve public sector insurance customers Victoria and New South Wales by managing their end to end workers compensation administration Complex Processing Big Ticket processing Syndicated processing High Volume 1.29m Insurer/broker transactions per annum 850,00 claims files managed per annum High Value Settling $81 billion premiums and claims per annum Central settlement efficiencies net down to $13bn per annum Trusted Best of breed technology partnerships IBM, Oracle, Autonomy, Pegasystems, Adobe, Watertrace, LSG and more 7
INSURANCE OFFERINGS Claims* Policy* Claims Utility Volume Claims Service (VCS) Broking* Document Repository Messaging Hub Central settlement Market Policy* Infrastructure Electronic Claims File eaccounts Technology* Binder 360 Services Data Capture Service (DCS) Verometrix Elective BPS Wrapper* Workers Compensation* We operate at the heart of London Market and some of our customers are Lloyd s 87 Syndicates 170 Insurance Brokers Insurance 64 Companies 8 11/07/2014
Capital Efficiency 80% Operational Efficiency Transparency & Control 50% 0 Unmatched Cash or Ledger items Inter-connected benefit case across Operations, Risk, Finance and Treasury 9
SUCCESSFUL IMPLEMENTATION WITH RSA Capital Efficiency 50% Operational Efficiency Transparency & Control 80% 0% With just 2 entities! 100s of transactions netted down to just 5 currency movements each week 5 FTES reduced to 1 47 process steps reduced to 26 Unmatched cash entries & unpaid ledger entries 6 week monthly closing cycle reduced to 2 weeks 10
ENABLING SUCCESSFUL MARKET ADOPTION Creating the right environment for adoption 1. EVOLUTION NOT REVOLUTION Using Market proven technology 2. MAXIMISES CURRENT IT INVESTMENTS Through choice and flexibility 6. HISTORY OF PARTNERSHIP Through experience and successful delivery 3. DOCUMENT COLLABORATION Enhancing effectiveness of interactions 5. COMPELLING COMMERCIAL PROPOSITION With low upfront investment and risk 4. OPTIMAL BLEND OF PEOPLE, PROCESS & TECHNOLOGY To deliver business outcomes 11
ASSEMBLING OUR PLACING UTILITY MARKET DIRECTORY OFF PLATFORM MESSAGE OFF PLATFORM MESSAGE GLOBAL BROKER BROKER MMT CARRIER MMT GLOBAL CARRIER BROKER SYSTEM CARRIER SYSTEM XCHANGING ACORD GATEWAY OTHER GLOBAL PLACING PLATFORMS COMMON CORE RECORD IMR DATA CAPTURE SERVICE BUSINESS PROCESSING SERVICES OTHER GLOBAL PLACING PLATFORMS 12
ADDING VALUE FOR BROKERS AND CARRIERS BENEFITS TO BROKERS Maximises current investment BENEFITS TO CARRIERS Maximises current investment Reduces effort and errors in data Easy to use Carrier UI Minimises the risk of dispute Minimises the risk of dispute Minimises burden of administration Minimises burden of administration Enables cost effective sourcing More business placed in London Improved access to London Enables global operations 13
The Hub for Insurance Professionals. What s on the platform: Content. Community. Connectivity We have delivered: Claims Viewer IMR4Brokers Configurable industry newsfeed Access to X-presso wifi Claims Agreement Mobile CAS Broker Lounge 14 X-presso Lite
Mobile CAS Go Live in March 14 Log in with ECF credentials Agree, query & decline claims on the move 15
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Brokers: Understand availability Underwriters and Claims Adjusters Dynamically control queuing Carriers: Advertise availability Increase prominence Analyse activity Book forward appointments Single platform 17 17 PRIVATE AND PRIVATE AND CONFIDENTIAL Xchanging 2012. No part of this document may be circulated, quoted or reproduced without prior approval of Xchanging. Subject to contract.
SO LET S GO BACK TO THE GLOBAL UTILITY You could be forgiven for thinking that we want to own the ranch Broker Services Carrier Services Global Broker Xuber for Brokers Xuber for (Re)Insurers Global Carrier Best of Breed Platforms Best of Breed Platforms Xuber for Brokers Xuber for (Re)Insurers but we don t see the world like that, and it would not be good for customer choice 18
YOU CAN THINK OF OUR VISION LIKE THIS An ecosystem of suppliers with a single utility platform at the core The utility platform The elective services 19
OR THIS Still the same concept 35 years on The utility platform The elective services 20
WHAT DOES GLOBAL AND LONDON CONVERGENCE MEAN? Global For Global Global For London London For London A Common Utility Framework that serves both London & Global A Framework that we ve been evolving & bringing to life for some time now 21
XCHANGING CLAIMS Paul Bermingham Executive Director of Claims
THE LONDON MARKET BUREAU - CLAIMS PROCESSING Xchanging Claims Services (XCS) XCS Claims Management & Adjusting for Lloyd s Xchanging Claims Services was formed in November 2001 as an enterprise Partnership between Xchanging and Lloyds of London. XCS Consists of approx. 380 staff, 320 located in Chatham and London and 60 processing in our centres in India Key services provided to Lloyd s market include:- Claims management service Enterprise Partners Claims agreement & processing Claims settlement SLAs agreed with the market.. providing products & services into London & international insurance markets 23
PAPER TO ELECTRONIC - DELIVERING SERVICE IMPROVEMENT 2001 2012 Two Jumbo Jets worth of paper delivering annually to on-shore processing centres Localised processing Lloyd s Chatham, Company Folkestone It s in the bureau! brokers lament Paper submissions used once 95% transmitted electronically to on-shore and off-shore locations International processing multi-skilling processing all types all locations Any submission can be tracked electronically through the process, new transparency on broker performance Electronic submissions re-used and for other purposes e.g. final slips available to carriers 100% paper policies 90% electronic better service to end clients Processing day limited 8am - 6pm 18 hours of processing per day 100% Paper claims files 75% of in scope Lloyd s claims electronic transformation of carrier & broker claims operations. Faster end to end process Broker queries managed on paper Broker queries- Tracker & email not lost, tracked, recorded builds virtuous improvement circle Backed up by a more secure, safer processing environment 24
CLAIMS IS CHANGING Xchanging Experienced and skilled people Process capability Access to great technology 2010 Single Location Product Monopoly London Market Focus London Market Software Cost Plus Model Rigid Business Model 197 FTE 2013 Single Location Product Monopoly & Elective London Market Focus London Market Software & Developing Xuber Cost+ & Elective Revenue = 25m Flexible Business Model 180 FTE 2017 Multiple Locations Elective Services Global Insurance Markets Xuber Based MI Capabilities 37m Revenue Agile Business Model 200+ FTEs 25 11/07/2013
WHAT IS THE GLOBAL CLAIMS MARKET? Highly Technical, expert driven Adjusting & Consulting 10-15% of portfolio 80-90% value COMPLEX High margin (25%+) TPA Medium Low complexity Blend of expert & process 80-90% of portfolio 10-15% value Medium margin (15%) BPO Low Complexity High volumes Process/ automation driven Support function for above Medium margin (15%) 26 PRESENTATION INFORMATION IN FOOTER 11/07/2014
WHAT IS THE GLOBAL CLAIMS MARKET? Market share of GWP by territory US UK AUS Other 50% 20% 5% 25% COMPLEX Lloyd s London Market Global Speciality Market General Insurance (Corp) Corporate/ Captive (Complex role) TPA Binders/ DUA Corporate/ Captive (volume role) General Insurance (SME/ P/Lines) Affinity BPO Support of above General Insurance (back office) Affinity (volume travel, mobile phone, credit card etc.) 27 11/07/2014
Lloyds London Companies MGA / TPA Global Specialty Corporate & Captive General Insurance Life & Pensions WHAT ARE THE AVAILABLE MARKETS TO GROW? Lloyd s London Companies MGA / TPA Global Specialty Corporate & Captive General Insurance Life & Pensions / Personal Lines DIRECT SALES CLARIFY PARTNERSHIPS / ACQUISITIONS CURRENT PORTFOLIO SYNERGY LIMITED SYNERGY (today) CAF, TP & Elective Contracts Direct Sales coverage No Clarify activity 40% Dual Stamp Direct Sales Similar profile to Lloyds market No Clarify activity Brokers uniting books of business Investment firms acquiring multiple MGA s Target for BPS & outsourced Back Office Tier 1 s divisions of RSA, Zurich etc. Tier 2 specialist national firms across Europe Xchanging will have recognised skills Major corporates and Captive self insured (Shell etc.) Primary target high end claims Secondary target, lower end (volume) claims via partnership or acquisition Target Top 20 GI accounts only Large scale BPS opportunities are of interest to Xchanging Product opportunities unlikely No proactive targeting Await outcome of two strategic opportunities 11/0 28 PRESENTATION INFORMATION IN FOOTER
PRODUCTS Binder 360 (Claims) Express Bordereau & Tracker Loss Funds Market Coordination Services Scheme Canada Recoveries XRM Recoveries Salvage Delegated Authority Delegated lead Delegated 2 nd lead VCS Global Claims Services Market Coordination RI Prop RI Liab Political Risks and Political Violence PFL Aviation Fees Verometrix Broker Fees Other Static Claims Company Statics Peer Review and Audit Consultancy 29 29
GO TO MARKET OFFERINGS David Brooks Global Sales and Marketing Director
STRATEGIC SALES OBJECTIVES Hunting Farming Growth Objectives Sales Culture Marketing Process / Governance 31
GTM TEAM - INSURANCE Dave Brooks Global GTM Dir Sales Relations & Comms Business Solutions Policy Admin Market Relations Product Design Claims Broking Services Data & Analytics Key Accts North America Australia SE Asia One Xchanging PR Channel Marketing Liaison Go to Mkt Solutioning Bid Management 32
GLOBAL STRATEGY EMEA Focus on UK Reduce dependency on London Acquisition to move into Personal Lines BPO (Motor, House, Travel ) Grow Channel introductions Significant ramp-up in direct sales team Australia Protect & Grow Worker s Compensation BPO Diversify business SE Asia Establish a Beachhead North America Acquisition to springboard traction 33
CURRENT AREAS OF CLIENT INTEREST Netsett (Net Settlement & Accounting) e-placing Claims Services SaaS Policy Administration Binder 360 Apps Management Services Entry to Lloyd s Consulting Services 34
THANK YOU