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TRANSCRIPT
© 2014 Xchanging plc
Introduction
Introduction to Insurance Services
Xchanging Claims
Go to Market Offerings
Adrian Guttridge - Executive Director of Insurance Services
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© 2014 Xchanging plc
BUT IT’S NOT JUST THE LONDON INSURANCE MARKET…
OUR GLOBAL INSURANCE CLIENTS
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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
© 2014 Xchanging plc
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)
XCHANGING’S INSURANCE OPERATIONS
Over 2,500 insurance practitioners amongst our 8,000 employees *
Insurance operations in 3 of our key countries
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Xchanging’s Principal Locations
UK France Germany Italy India Malaysia Australia Americas Singapore
• LONDON
•BASILDON
•CHATHAM
• FOLKESTONE
•ROMFORD
• LEICESTER
•Preston
•Glasgow
• Basingstoke
•Paris •Hof
•Munich
•Milan •BANGALORE
• SHIMOGA
•GURGAON
• SOLAN
•Chennai
•Mumbai
•Kuala Lumpur
• SYDNEY
•MELBOURNE
•Adelaide
• Brisbane
•Chicago
•New York
• Bermuda
• Singapore
Key insurance contracts
Insurance differentiators
• 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
Indicates Insurance Delivery Centre locations * based on average monthly numbers, 2012
Japan
• Tokyo
Spain
•Madrid
© 2014 Xchanging plc
GLOBAL INSURANCE STRUCTURE
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Adrian Guttridge
Executive Director
Insurance Services
GO-TO-MARKET
David Brooks
Global Director
Julie Lynch
Marketing & Relations
Director
Jenna Richardson
Head of Insurance
USA
Steve Reid Operations BPO
General
LINES OF BUSINESS
Nick Lamb
MD XBS
Max Pell
MD XIS & XCS
Paul Bermingham
Claims Director
Diego Ascani
Head of Insurance
Australia
DELIVERY
John Niblett
CIO
Beverly Stone
UK Insurance
Operations Director
Manoj KP
Head of Insurance
India
SUPPORT
SERVICES
Paul Carson
Finance Director
Lindsay Healy
Director of Strategy &
General Legal
Counsel
Jenny Coe
HR Director
© 2014 Xchanging plc
INSURANCE SERVICES – THE ‘XCHANGING’ ADVANTAGE
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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
© 2014 Xchanging plc
Policy*
INSURANCE OFFERINGS
11/07/2014 8
Data Capture
Service
(DCS)
Verometrix
Volume Claims
Service
(VCS)
Claims
Utility
Document Repository
Messaging Hub
Central settlement
Market Infrastructure
Electronic Claims File
eAccounts
Workers Compensation*
Claims*
Broking* Policy*
Insurance
Companies 64
Lloyd’s
Syndicates 87
We operate at the heart of London Market and some of our customers are…
Insurance
Brokers 170
Elective BPS Wrapper*
Technology*
Binder 360
Services
© 2014 Xchanging plc 9
Inter-connected benefit case across Operations, Risk,
Finance and Treasury
80%
Capital
Efficiency
Operational
Efficiency
Transparency & Control
50% 0
Unmatched
Cash or Ledger
items
© 2014 Xchanging plc 10
SUCCESSFUL IMPLEMENTATION WITH RSA
• 5 FTES reduced to
1
• 47 process steps
reduced to 26
50%
• With just 2
entities!
• 100s of
transactions
netted down to
just 5 currency
movements
each week
• Unmatched cash
entries & unpaid
ledger entries
• 6 week monthly
closing cycle
reduced to 2
weeks
80% 0%
Capital
Efficiency
Operational
Efficiency
Transparency
& Control
© 2014 Xchanging plc
ENABLING SUCCESSFUL MARKET ADOPTION
Creating the right environment for adoption
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1. EVOLUTION NOT REVOLUTION… Using Market proven technology
6. HISTORY OF PARTNERSHIP… Through experience and
successful delivery
5. COMPELLING COMMERCIAL
PROPOSITION… With low upfront investment and risk
3. DOCUMENT COLLABORATION… Enhancing effectiveness of
interactions
2. MAXIMISES CURRENT IT INVESTMENTS… Through choice and flexibility
4. OPTIMAL BLEND OF PEOPLE,
PROCESS & TECHNOLOGY… To deliver business outcomes
© 2014 Xchanging plc
BROKER MMT
ASSEMBLING OUR PLACING UTILITY
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GLOBAL BROKER GLOBAL CARRIER
MARKET DIRECTORY
OTHER GLOBAL
PLACING
PLATFORMS
OTHER GLOBAL
PLACING
PLATFORMS
CARRIER MMT
BROKER SYSTEM CARRIER SYSTEM
XCHANGING ACORD GATEWAY
COMMON CORE RECORD
IMR
DATA CAPTURE SERVICE
BUSINESS PROCESSING SERVICES
OFF PLATFORM
MESSAGE
OFF PLATFORM
MESSAGE
© 2014 Xchanging plc
BENEFITS TO BROKERS BENEFITS TO CARRIERS
ADDING VALUE FOR BROKERS AND CARRIERS
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Maximises current investment
Reduces effort and errors in data
Minimises the risk of dispute
Minimises burden of administration
Enables cost effective sourcing
Improved access to London
Maximises current investment
Easy to use Carrier UI
Minimises the risk of dispute
Minimises burden of administration
More business placed in London
Enables global operations
© 2014 Xchanging plc
Claims Agreement
X-presso Lite Broker Lounge
We have delivered:
• Claims Viewer • IMR4Brokers • Configurable industry newsfeed • Access to X-presso wifi
What’s on the platform:…
Mobile CAS
The Hub for Insurance Professionals.
Content. Community. Connectivity
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© 2014 Xchanging plc
Mobile CAS • Go Live in March ’14
• Log in with ECF credentials
• Agree, query & decline claims on the move
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© 2014 Xchanging plc
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. 17
Carriers: Brokers:
• Understand availability
• Underwriters and Claims Adjusters
• Dynamically control queuing
• Book forward appointments
• Advertise availability
• Increase prominence
• Analyse activity
Single platform
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© 2014 Xchanging plc
SO LET’S GO BACK TO THE GLOBAL UTILITY
You could be forgiven for thinking that we want to own the ranch…
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…but we don’t see the world like that, and it would not be good for customer choice
Global
Carrier
Global
Broker
Broker Services
Best of Breed Platforms
Xuber for Brokers
Carrier Services
Best of Breed Platforms
Xuber for (Re)Insurers
Xuber for Brokers Xuber for (Re)Insurers
© 2014 Xchanging plc
YOU CAN THINK OF OUR VISION LIKE THIS…
An ecosystem of suppliers with a single utility platform at the core
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“The utility platform”
“The elective services”
© 2014 Xchanging plc
…OR THIS
Still the same concept 35 years on
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“The utility platform”
“The elective services”
© 2014 Xchanging plc
WHAT DOES GLOBAL AND LONDON CONVERGENCE MEAN?
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A Common Utility Framework that serves both London & Global
Global
For
Global
London
For
London
Global
For
London
A Framework that we’ve been evolving & bringing to life for some time now
© 2014 Xchanging plc
THE LONDON MARKET BUREAU - CLAIMS PROCESSING
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
Claims agreement & processing
Claims settlement
SLAs agreed with the market.
Xchanging Claims Services (XCS)
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XCS
Claims Management &
Adjusting for Lloyd’s
Enterprise Partners
…. providing products & services into London & international insurance markets
© 2014 Xchanging plc
PAPER TO ELECTRONIC - DELIVERING SERVICE
IMPROVEMENT
2001 2012
Two Jumbo Jets worth of paper delivering
annually to on-shore processing centres
95% transmitted electronically to on-shore and
off-shore locations
Localised processing Lloyd’s Chatham,
Company Folkestone
International processing multi-skilling processing
all types all locations
‘It’s in the bureau!’ brokers lament Any submission can be tracked electronically
through the process, new transparency on
broker performance
Paper submissions used once 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
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Backed up by a more secure, safer processing environment
© 2014 Xchanging plc
CLAIMS IS CHANGING
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
11/07/2013 25
Xchanging
Experienced and skilled people
Process capability
Access to great
technology
© 2014 Xchanging plc
WHAT IS THE GLOBAL CLAIMS MARKET?
11/07/2014 PRESENTATION INFORMATION IN FOOTER
Highly Technical, expert driven Adjusting & Consulting
10-15% of portfolio
80-90% value
High margin (25%+)
Medium – Low complexity Blend of expert & process
80-90% of portfolio 10-15% value
Medium margin (15%)
Low Complexity High volumes
Process/ automation driven Support function for above
Medium margin (15%)
COMPLEX
TPA
BPO
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© 2014 Xchanging plc 27
WHAT IS THE GLOBAL CLAIMS MARKET? WHAT IS THE GLOBAL CLAIMS MARKET?
11/07/2014 27 27
Lloyd’s
London Market
Global Speciality Market
General Insurance (Corp)
Corporate/ Captive (Complex role)
Binders/ DUA
Corporate/ Captive (volume role)
General Insurance (SME/ P/Lines)
Affinity
Support of above
General Insurance (back office)
Affinity (volume – travel, mobile phone, credit card etc.)
COMPLEX
TPA
BPO
Market share of GWP by territory
US UK AUS Other
50% 20% 5% 25%
© 2014 Xchanging plc
WHAT ARE THE AVAILABLE MARKETS TO GROW?
PRESENTATION INFORMATION IN FOOTER 28 11/0
7/20
14
Lloyd’s London Companies MGA / TPA Global
Specialty Corporate & Captive
General Insurance
Life & Pensions / Personal
Lines
Llo
yds CAF, TP &
Elective Contracts
Direct Sales coverage
No Clarify activity
Lon
do
n C
om
pan
ies 40% Dual
Stamp
Direct Sales
Similar profile to Lloyds market
No Clarify activity
MG
A /
TP
A
Brokers uniting books of business
Investment firms acquiring multiple MGA’s
Target for BPS & outsourced Back Office
Glo
bal
Sp
ecia
lty Tier 1’s –
divisions of RSA, Zurich etc.
Tier 2 – specialist national firms across Europe
Xchanging will have recognised skills
Co
rpo
rate
& C
apti
ve
Major corporates and Captive self insured (Shell etc.)
Primary target high end claims
Secondary target, lower end (volume) claims via partnership or acquisition
Gen
eral
Insu
ran
ce
Target Top 20 GI accounts only
Large scale BPS opportunities are of interest to Xchanging
Product opportunities unlikely
Life
& P
ensi
on
s No proactive targeting
Await outcome of two strategic opportunities
DIRECT SALES CLARIFY PARTNERSHIPS / ACQUISITIONS
CURRENT PORTFOLIO SYNERGY LIMITED SYNERGY (today)
© 2014 Xchanging plc
PRODUCTS
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Binder 360
(Claims)
Recoveries
Delegated
Authority
Market Co-
ordination
Fees
Recoveries
Delegated
lead
XRM
Express
Bordereau &
Tracker
Loss Funds
Market Co-
ordination
Services
Broker Fees
Scheme
Canada
Salvage
Delegated 2nd
lead
Political Risks
and Political
Violence
RI Prop
RI Liab
Verometrix
Global Claims
Services
Aviation PFL
VCS
Other Peer Review
and Audit
Static Claims
Company
Statics
Consultancy
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© 2014 Xchanging plc
STRATEGIC SALES OBJECTIVES
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Hunting Farming
Process / Governance
Sales Culture Marketing
Growth Objectives
© 2014 Xchanging plc
GTM TEAM - INSURANCE
32
Dave Brooks Global GTM Dir
Sales Relations & Comms Business Solutions
Policy Admin
Claims
Broking Services
Data & Analytics
Key Accts
North America
Australia
SE Asia
Product Design
Go to Mkt
Solutioning
Bid Management
Market Relations
PR
Channel
Marketing Liaison
On
e X
ch
an
gin
g
© 2014 Xchanging plc
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
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© 2014 Xchanging plc
CURRENT AREAS OF CLIENT INTEREST
Netsett (Net Settlement & Accounting)
e-Placing
Claims Services
Policy Administration
Binder 360
Apps Management Services
Entry to Lloyd’s Consulting Services
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SaaS