PLANNING FOR THE FIRST BIRTHDAY

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PLANNING FOR THE FIRST BIRTHDAY
Worldwide Insurance electronic Commerce
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AGENDA

• Re-cap - why was WISe formed
• Where are we now ?
• Where are we going ?

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Why was formed ?

• The owners of LIMNET, RINET and WIN
• shared a common vision
• Business to Business Electronic Commerce
• opportunity for the whole industry
• All were frustrated at the lack of progress
• Consulted widely - next steps

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Concern
Multiple Systems Multiple Processes Multiple
Technologies Multiple Frameworks ... Increased
complexity Increased costs. . Chaos !!!!!
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We Need To Act As An Industry

• Exploitation of e.commerce - competitive edge
• BUT
• Insurance is a complex web of relationships
• Can only succeed if critical mass is achieved and
  deployment is simplified
• No single company or group can dominate
• Experience has proved this - many times
• All recognise the need to reduce barriers to
  progress - can only achieve if work together
• Must be new and global
• Requires demonstrable leadership

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Mission

• Improve The Efficiency, Effectiveness And
  Attractiveness Of The Global Insurance Market
  Through The Collective Implementation And
  Exploitation Of Electronic Commerce
• Legally formed 1st May 1999
• First Board July 1999

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Purpose

• Act as a facilitator of change and promote
  e-commerce within the industry
• Ensure the industry collaborates in areas where a
  collective approach is necessary for the
  introduction of e-commerce
• Global - covering all aspects of the industry -
  open membership
• Leadership from the Board
• Develop and promote standards
• Focus on implementation - providing the products
  and services required to achieve the mission

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Board

• Brokers
• Marsh AON Willis
• Benfield JLT
• Carriers
• Lloyds Munich Re Hartford
• AXA ACE ERC
• Allianz CGU
• Alternates
• Zurich SCOR Generali
• Swiss RE Gerling

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Initial Focus

• Collaborate with industry bodies on the
  development of standards
• Establish a Trusted Trading framework for the
  industry
• Accelerate the implementation of automated Data
  Exchange

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WISe Areas of Focus

Standards (definition and simplification of
industry processes)
Placing
Claims
Accounts
Settlement
Premiums
Trusted Trading (e-mail attachments, web-based
applications)
Data Exchange (structured computer to computer
data exchange, EDI, Business Center)
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Where Are We?
Standards for e-commerce

• Data standards
• Business process standards
• Legal standards
• Technology standards
• Policy

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Standards in Insurance
WISe Approach

• Establishing a collaborative, cross-industry,
  initiative for e-commerce standards
• Involvement from industry associations - global
• Linked to an International forum for policy
  formulation
• Will probably encompass the previous standards
  body The Joint Venture
• Board support provided to WISe

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WISe Implementation Programs

• Exchange of unstructured information
• Word processed docs
• Spreadsheets
• Pictures
• Video
• Voice etc
• E-mail and Web-based applications
• EDI exchange of structured data content

WISe Trusted Trading
WISe Data Exchange
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Trusted Trading - value

• Secure trading environment - Internet Based
  Service
• Legal framework and trust environment
• Club - members want to change business processes
• Trading initiatives
• Specific relationship
• Type of Business
• Culture change
• or just secure E-mail
• Applications hosting - the future
• Web applications
• Member and Third Party

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Trusted Trading - Status

• Statistics
• 50,000 registered users
• 130,000 transactions in first 6 months
• Growth 30 per month - accelerating
• Board and alternates commitment to implement
• Significant number of installations over next 3
  months
• Third party and new member interest
• Substantial number of member-2-member proposals
  in progress
• Key for 2000 is cement use - THE Global Trading
  Environment

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WISe Implementation Programs

• E-mail Word processed docs
• Spreadsheets
• Pictures
• Video
• Voice etc
• Web-based applications
• EDI exchange of structured data content

WISe Trusted Trading
WISe Data Exchange
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The Back-Office Today
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AddressingComplexity

• Advantages and benefits of automation recognised
• EDI - historically complex
• Involved each party translating data to and from
  proprietary and industry standard formats
• Many receivers of data invested in EDI systems
• How to encourage enough organisations to invest ?
• Disproportionate benefit
• Complexity of technology
• Need critical mass of senders and receivers

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Data Exchange

• Aim to automate inter-company exchange between
  members
• Coordinated - synchronized implementation plan
• Based on standards
• Simplified business processes
• Target transaction types and dates
• Lengthy programme - will need stamina
• WISe catalyst - Business Center
• Help organizations participate - quickly and at
  an affordable cost

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Output from the senders application
Business Centre
EDIFACT

• Translation
• Distribution
• Error log
• Audit trail
• Portal

Proprietary file
Screen display
Print layout
Input to the receivers application
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Data Exchange - Status

• Developing implementation plan - need to
  accelerate
• Business Process Simplification complete for
  closing, accounting and payment
• London implementation - 26 brokers
• Claims in progress - analysis phase complete
• Business Center - first implementation underway
• Significant number of proposals in progress
• A number of WTT/DE/Business Center proposals
  emerging

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Surprises

• Collaboration
• Increase in awareness
• Drive - from the Members
• Open-doors and level of interest
• Number of opportunities
• Desire to make it work
• No surprise - still needs a lot of effort to
  drive forward
• need to overcome cynicism

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WISe - Well Positioned

Standards (definition and simplification of
industry processes)
Placing
Claims
Accounts
Settlement
Premiums
Trusted Trading (e-mail attachments, web-based
applications)
Data Exchange (structured computer to computer
data exchange, EDI, Business Center)
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Looking Forward - end 2000

• More organizations joining
• Customers linking in
• USA success stories
• Applications available over WTT increasing
• Turning traffic into data - Business Center
• Beginning to shape up as an Industry portal

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Summary

• Formed new global organisation
• Gained board commitment to support standards and
  implement WISe Trusted Trading and Data Exchange
• Expanding involvement in programmes
• Engaging the support of industry bodies and
  suppliers
• Good team - committed - supported by the members
• Motivation - to get involved is increasing

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Question

• If you had secure, global access to business
  partners, what would you do with it - how could
  you make a difference?
• Without YOU rising to this challenge WISe can,t
  achieve a thing
• By the way - its here - it works - many of you
  are about to get access to it

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A Change for the Better
Worldwide Insurance electronic Commerce