Technology Support for Electronic Placing The best way to predict the future is to invent it Alan Kay – President, Viewpoints Research Institute Peter Holdstock, LMA, and Adam Stafford, Lloyds IT Club, November 2007 Peter Holdstock

Introduction and Background Placing technology environment map LMA role in technology The Lloyds perspective Agenda Peter Holdstock

A Short History Electronic Placing is not new. Individual initiatives - Broker portals, s. Market initiatives - EPS, Wise, WIN, Ri3K, eReinsure, Kinnect Group initiatives – G6 Peer-to-Peer a tentative step into standardisation. skinny data set one-way messaging varying levels of document and data integration Post G6 growing functionality (two-way, multi-section risks) increasing emphasis on direct messaging for STP other initiatives point towards direct messaging Peter Holdstock

What is electronic placing? Face to Face Complex Face to Face, Telephone, Electronic Moderate Electronic Simple Negotiation Data Exchange

Electronic Placing Components Participants Suppliers / Vendors Benefits Barriers Environment Map Standards Process Data and Documents Technology Roadmap Evidence of Cover Interchange Agreement Legal Aspects Threats Suppliers / Vendors Environment Map Technology Peter Holdstock

Electronic Placing Environment Map Trading Platform Hosted full trading platform Controls process and data Market Repositories Gateway Workflow Desktop Services Document Repository Core Systems Portal Browser Notifications Submission / binding Messaging Hub Outsourced connectivity and message management P2P Message Browser Electronic Forms Hosted data entry and message creation Trading Partners Portal Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock

Electronic Placing Environment Map Gateway Workflow Desktop Services Document Repository Core Systems Browser Notifications Submission / binding Messaging Hub Outsourced connectivity and message management P2P Message Browser Electronic Forms Hosted data entry and message creation Trading Partners Portal Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock

Definition A web-based application offering users secure access to a trading environment which provides workflow and data management functionality via the internet. Primary Function Secure on-line trading. Additional Services Structured ACORD-compliant message exchange. Electronic links to market repositories. Electronic links to market services. Peter Holdstock Trading Platform

How does it work Brokers and Underwriters undertake the placing process on-line by logging on to the platform May provide ability for Brokers and Underwriters to trade using their own internal workflow using messaging. Process and data managed by the Trading Platform. May provide links to external information and services Examples Ri3K, eReinsure Peter Holdstock Trading Platform

Gateway Workflow Desktop Services Document Repository Core Systems Browser Notifications Trading Partners Trading Platform Hosted full trading platform Controls process and data Market Document Repositories Notifications Peter Holdstock Another Trading Platform Messaging Hub

Electronic Placing Environment Map Gateway Workflow Desktop Services Document Repository Core Systems Browser Notifications Submission / binding Messaging Hub Outsourced connectivity and message management P2P Message Browser Electronic Forms Hosted data entry and message creation Trading Partners Portal Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock

Definition A software product that acts as a front door to the organisation, allowing business messages and documents to be sent and received by the company, using ACORD Web Services. Primary Function Data and document exchange. Sending and receiving ACORD standard placing messages. Shredding incoming XML messages Maintenance of partner connectivity, and ACORD upgrades. Additional Services Audit log of messages. Simple relational database and document repository. Error management functionality. Business statistics. Peter Holdstock Gateway

How does it work Links organisation to trading partners over the internet. Direct messaging capability consists of two elements, data (RLC) and documents (DRI). Receives and validates incoming and outgoing messages and manages communications protocols. Synchronises data and documents when they apply to a single business message. Examples Atos (WritePlace), IBM (Insurer Messaging Network), Perspective Technologies (onMessage), Trace Isys (TMMS), TriSystems InfoBahn (Universal Messaging Gateway), WebConnectivity (EnabledB2B, EnabledR2R) Peter Holdstock Gateway

Electronic Placing Environment Map Gateway Workflow Desktop Services Document Repository Core Systems Browser Notifications Submission / binding Messaging Hub Outsourced connectivity and message management P2P Message Browser Electronic Forms Hosted data entry and message creation Trading Partners Portal Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock

Definition A web-based application offering users the ability to route messages between trading partners. Primary Function Outsourced connectivity configuration. Secure delivery of ACORD RLC and DRI messages. Maintenance of partner connectivity, and ACORD upgrades. Additional Services Message validation. Control features to manage partners gateway downtime. Electronic links to market repositories. Peter Holdstock Messaging Hub

How does it work Used to route XML messages and supporting documents between trading parties. Message validation may or may not be provided. Examples Atos (WritePlace), Catex, IBM (Insurer Messaging Network), Kewill, SSP (Nexus), The Insurance Workplace. Peter Holdstock Messaging Hub

Electronic Placing Environment Map Gateway Workflow Desktop Services Document Repository Core Systems Browser Notifications Submission / binding Messaging Hub Outsourced connectivity and message management P2P Message Browser Electronic Forms Hosted data entry and message creation Trading Partners Portal Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock

Definition An easy-to-use, dynamic front-end to business process. Primary Function Used to help organisations quickly participate in electronic placing without incurring major IT development expense. Provides a structured input form for a specific process. Converts to either an or structure data message. Additional Services Data validation. Document production. Peter Holdstock Electronic Forms

How does it work Generally used in combination with a hosted gateway. Examples Atos (WritePlace), Exari, IBM (eForm), The Insurance Workplace, TriSystems InfoBahn (Universal Messaging Gateway), WebConnectivity (Easy Placement, Starter Kit) Peter Holdstock Electronic Forms

Examples of the technology choices Peter Holdstock Vendors Landscape Analysis Broker Core System U/W Core System Document Management WorkflowGateway Electronic Forms Trading Platform Messaging Hub Market Repositories ActurisCGI GIOS Alphabet Group TIW Capita Total Documents Swordfish Alphabet Group TIW ATOS OrigineReinsureATOS Origin WritePlace ISO Market Wordings Database Open GI Momentum Eurobase Synergy Capita Total Documents Swordfish Knowledge Center ATOS Origin IBM eFormsRi3KIBM Insurer Messaging Network Xchanging IMR Sequel (SBS) Sectornet Intech Open Box DocumentumMicrosoft Sharepoint IBM Insurer Messaging Network QKnowKewill Total Objects Global XP ROOM Subscribe FilenetQKnow Perspective onMessage WCL Easy Placement Total Systems Ultima Sequel (SBS) Eclipse Knowledge Centre SourceCode K2 Trace Isys TMMS Trace Isys TWINS Total Objects IMS Microsoft Sharepoint TriSystems UMG Xchanging Brokasure Xchanging Genius OpenText Hummingbird WCL EnabledB2B Internal infrastructure Shared infrastructure ACORD standard RLC/DRI messagesPlacing data and documents Resource: Electronic Placing Landscape v1.3

Vendors sell products that combine components. E.g. Gateway and Electronic Forms. Brokers and Carriers choose combinations to suit organisation uniqueness. The market will not settle on a one-size-fits-all solution in the short term. Peter Holdstock Component Combinations

Fully-integrated message-enabled organisation Gateway Workflow Desktop Services Document Repository Core Systems Messaging Hub Outsourced connectivity and message management P2P Message Trading Partners Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock Data and Documents fully integrated The ideal architecture for maximum benefit realisation. Allows single desktop for all trading activity. Full electronic exchange of data and documents.

Workflow Desktop Services Document Repository Core Systems Browser Notifications Messaging Hub Outsourced connectivity and message management Browser Electronic Forms Hosted data entry and message creation Trading Partners Trading Platform Hosted full trading platform Controls process and data Market Repositories Notifications Peter Holdstock Platform/hub-enabled organisation Submission / binding Notifications Electronic trading using electronic forms and trading platforms. No integration with core systems. Cheaper and faster to implement but does not allow full benefit realisation.

Workflow Desktop Services Document Repository Core Systems Browser Trading Partners Market Repositories Peter Holdstock Traditional organisation Submission / binding "Tradition is what you resort to when you don't have the time or the money to do it right." Kurt Herbert Alder

LMA Role in Technology Project Objectives To create clarity in the market about the benefits and implications of, and options for, the adoption of EP. To extend significantly the use of EP amongst market. Project Activities Electronic Placing Competitive Landscape. Electronic Placing Development & Adoption Roadmap. Further development of EP Implementation Guide. Governance Electronic Placing Steering Group. Electronic Placing Implementation Group. Electronic Placement Data Standards Group. Peter Holdstock

Evolving Standards Adoption Cycle Peter Holdstock Broker & Carrier Implementations LMA Data Standards Group LMA Implementation Group Vendors / Products ACORD

Products New products will emerge. E.g. Business Intelligence. Seamless interaction between products. Frictional costs will be removed. Standards Translation between standards (ACORD/GDV) Standards for ancillary processes. E.g. schedules. Take-up and Adoption More work during transition period. Requires vision. Goal is Single Electronic desktop Peter Holdstock Some final thoughts…

Peter Holdstock "Those who say it cannot be done should get out of the way of those that are doing it." Joel Barker