Bordereau Reporting

September, 2011

Issue 5

In This Issue

 

·         Aggregated data cannot be changed into disaggregated data and you may really need the disaggregated data

 

·         Think that the European financial crisis will stave off Solvency II? Think again and watch interview with Lloyd’s Sean McGovern

 

·         MGA’s get ready for S2/Coverholders next

 

·         Cloud computing is here right now

 

·         See us at Booth 19 at Lloyds during the Coverholder Technology Forum, September 30th

 

Prior Newsletters

·         June

·         May

·         April

 

Links to CATEX Ad’s

 

·         Bordereau System Ad

·          Bordereau System Brochure

·          CATEX TV Broadcasts

·          Bordereau System Demo

 

 

To see a 10 minute video or to learn more contact:

 

US

Jaime Ponce

jponce@catex.com

Phone: 609-683-0888

 

UK

Shane Hustwayte

shustwayte@catex.com

Phone: 44 (0)20-7663-5656

 

www.catex.com

 

The Value of Disaggregated Data

 

 

Aggregated Disaggregated

 

 

 

Webster’s dictionary defines the verb “to aggregate” as “to collect of gather into a mass or whole”. Be on the lookout for Bordereau Management Systems that can only produce aggregated data. A management system that reduced all of your delegated authority business into just a few lines revealing bordereau totals may seem attractive but it’s a waste of money and will probably result in you having to repeat the process offline so you can break the business down into more granular pieces.

 

Don’t rely on us. Ask your market or read the articles describing what regulators world-wide are looking for.

 

The definition of “to disaggregate” is “to separate into component parts”. Only one bordereau management system can manage disaggregated data and separate all of your delegated authority or program business into its component parts and roll it up to produce the aggregate totals. That one system is the CATEX Bordereau/Program Management System.

 

It’s easy to roll up disaggregated data to aggregate totals but don’t let anyone fool you by telling you that they can separate the aggregate data into its component parts. It can’t be done unless you do what we do and collect the data at its most disaggregated, granular level. Once we collect it you can see performance breakouts per product, geography, calendar, coverholder or any other metric you choose. Compare that underwriting intelligence to a few lines of aggregate totals on a spreadsheet!

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Don’t think that Europe’s financial problems will forestall Solvency II

 

 

 

Lately the financial news is replete with speculation that the Greek government will default on its bonds. Occasionally the possibility of Italian, Spanish and Portuguese credit default are raised too. Underlying all this seems to be increasing commentary by some that “the Euro will never survive this” or that “this idea of a European common currency is doomed to fail”.

 

We think the Euro is a pretty good thing. We’re old enough to remember the problem of exchanging guilders to francs to marks to lira to drachmas to pesetas and so on when traveling in Europe. However we cannot comment on the European Monetary Union or its status. That would be well beyond our remit. One thing though that has struck us though about all this European discussion was how this state of flux would affect the roll-out of Solvency II?

 

As it turns out Solvency II, which is a European Union directive that codifies and harmonizes insurance regulation in EU member countries, wouldn’t be affected at all by any action associated the Euro, the Monetary Union or the credit default of any member country.

 

Listen to our interview with Sean McGovern, Director, North America & General Counsel of Lloyd’s of London to learn more. http://www.youtube.com/watch?v=5xcDkgrVnVo

 

Sean also discussed the impact of S2 implementation on underwriting and claims reserving processes at Lloyd’s and the far reaching effects it will have market-wide.

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Solvency II Effects on MGA’s

 

In a August 19th article Insurance Day discussed the impact of S2 on MGA’s. The article is well worth reading and we have it linked on the left for you. The bottom line according to Insurance Day is that as all this S2 mandated scrutiny is concentrated on insurance markets toy can be certain that the “knock-on” effects are going to be felt by MGA’s, which have the underwriting authority to bind risks on behalf of the insurer.

 

For months now CATEX has been warning MGA’s and coverholders that the time was approaching when the markets were going to demand much better data –in terms of quality and standardization – from downstream partners. That day may be here now according to the article. This is one of the reasons why our CATEX Bordereau/Program Management System is gaining popularity with coverholders and MGA’s.

 

Aside from being able to provide whatever data your market may need in real time the CATEX Bordereau/Program Management System empowers a coverholder by providing the tools needed to implement real time underwriting controls across multiple products. This type of control will make an MGA much more attractive to a market as they themselves strive to conform to the S2 standards.

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How can Regulators keep up with the speed of our business?

 

 

Once again our friends at Insurance Day have an interesting article that answers not only this question but the question that isn’t asked….which is “How are we going to get our own processes up to speed so markets or regulators will even be able to review our books?” The answer, not to seem too Biblical, is found in the sky.

 

Cloud computing is no longer the future but it’s already the foundation that’s in place today for successful companies like Google and Salesforce.com. Instead of having all your individual or corporate electronic files residing on your desktop or company servers “cloud computing” says to place all that information on the Internet. Once it’s on the Internet you can access the information completely from anywhere in the world.

 

The entire insurance and reinsurance transaction can be placed on the cloud and accessed in real time. Sure, this is very convenient but here’s an interesting number that makes this development very important. Next year, global insurers will spend $140 billion on IT systems –much of it on servers and legacy system maintenance that could be directed toward the cloud at a fraction of that cost.

 

When you hear “software as a service” bandied about that means those systems are available freely, 24/7, anywhere in the world, to authorized users. The access you have to your system from a Starbucks in Tokyo is the same that you have from your desk in Chicago.

 

The CATEX Bordereau/Program Management System is a software as a service system and is a cloud-based solution. This means that it’s ready to be implemented immediately and does not require costly hardware configuration. And, if you for one minute think that so called “cloud-based” systems are less complete or less responsive than client based systems you are mistaken. There are no limits to a cloud based system in terms of sophistication and responsiveness. (Hint: remember that the Pentagon designed the Internet to serve as a fail-safe mechanism for the launch of nuclear missiles!!).

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Come see us at Booth 18 at Lloyd’s Coverholder Fair

 

 

CATEX will be demonstrating its Bordereau/Program Management System at the Lloyd’s Coverholder Fair on Thursday and Friday September 29th and 30th at Lloyd’s in London. Stop by and see us for a demonstration of our bordereau system. We will let you “drive” the completely web-based system and you can jump around a demo version by selecting the work process icons.

At the end of 10 minutes you’ll be an expert and we’ll give you a little certificate to prove it! Be sure to select some of the 50 reports that come with any Bordereau System to see how the data you select can appear in table, graph or map format. We would be interested in your comments.