Aspen Re has become the first Bermudian insurer to implement electronic accounting and settlement
Aspen Re has become the first underwriter on the island to successfully implement electronic accounting and settlement (A&S) together with two of the islands brokers - Aon and Benfield.
A&S Messaging is rapidly becoming an industry wide standard and this implementation within Bermuda demonstrates the importance of A&S globally.
This is the first implementation of A&S in Bermuda with Aspen Re Bermuda now trading 100% of its accounting and settlement transactions electronically with the two brokers, which equates to approximately 300 submissions a month.
Traditionally, premium and claim transactions, settlement notices and account statements have been delivered by brokers via email, by fax or on paper. A&S messaging enables brokers and underwriters to exchange data and documents over a secure internet connection, bringing the benefits of an efficient, standardised process for receipt and processing of messages, and allowing increased volumes of business to be processed without a corresponding increase in headcount.
A&S messaging also provides regulatory benefits such as improved compliance in the areas of audit and control, and improved data integrity between brokers and reinsurers. The project forms an important contribution towards the goal of ‘end-to-end’ electronic trading between reinsurers and their broker partners throughout the full risk lifecycle.
Lisa Gibbard, Head of IT at Aspen Re, commented: “With the implementation of A&S technology, our Finance team have a single ‘portal’ to monitor for incoming broker messages and documents. This replaces the often problematic process of tracking and chasing paper and email notifications and pushes forward with the ‘Market Reform’ initiative which has seen recent success in the London Market.”
Ian Summers, director of Change Strategy at Aon said: “Aon congratulates Aspen for their support and leadership in Bermuda with the move towards automation of the reinsurance accounting process. The use of messaging to support the reinsurance process introduces transparencies and efficiencies not achievable through the traditional distribution channels, Industry statistics refer to a 35% rework associated with the traditional processes – so the benefits are obvious.”
“It is vital that we provide real benefits to our clients and markets for such initiatives to be scalable, as such A&S messaging should be seen as one component in the end to end solution offered by Aon to its clients and markets.”