Autumn 2015

Beware the DOCOsoft Haka! The Story of the Rugby World Cup 2015

The 2015 Rugby World Cup got off to a fine start with great games and perhaps the greatest "David against Goliath" upset of all time when Japan shocked South Africa in the last minute. The Rugby Union-mad underwriting community - the Brits among them at any rate - will no doubt have taken considerable pleasure in ribbing their South African colleagues! Certainly, DOCOsoft's man in Japan was a delighted, if slightly incredulous spectator.

As we all know, however, the beauty of sport is that South Africa can put that shock behind them, focus on the next games and still go on to win the tournament. Indeed they remain probably along with the All Blacks, one of the favourites.

The exciting Japan victory reminded me of a time when DOCOsoft was a minnow in the world of London market claims technology competing against much bigger fish. The DOCO pack was lean and focused, the half backs and runners elegant and willowy of movement but we sometimes struggled to record victories due to the overwhelming numbers and strength of our technology opponents.

Those days are increasingly a distant memory now, however. As DOCOsoft grew in confidence and stature we started to record more victories, winning became a habit, and we attracted more talent and clients that wanted to play our innovative style and brand of leading edge technology. More often than not a winning team - whether it is in sport or technology - will have a vision, a way of doing things that is underpinned by a common purpose and strategy.

Our strategy was to provide genuinely innovative and market-leading claims solutions to our clients. At DOCOsoft, we realised some time ago that we had to embrace innovation quite simply because the world of claims is changing so fast and faces new complexities, which require technology solutions that are future-proofed.

We are looking forward to the semi-final of the present Rugby World Cup despite the exits of England and Ireland, eager to see the remaining Titans of the game take each other on. DOCOsoft, meanwhile, will continue to refine its systems on behalf of our growing client portfolio while we issue a stern warning to our competitors: beware our Haka!

One Small Step for Claims, A Giant Leap Forward for Claims Adjusters

The world of London market claims adjusting is moving into a bold future of modernisation, 24/7 availability, enhanced and enriched data and speedier claims processing with the live launch of one-stop-shop claims initiative Write Back on October the 17th.

Early adopters Talbot Validus and Faraday are now ready to go live on Write Back, which is underpinned by a Claims Management System DOCO Claims. As a result, it will mean that both Lloyd's and London company markets can adjust claims and interact in real time creating real efficiency gains and improved ROI.

DOCOsoft will be offering demonstrations of the system's capabilities on the 19th of November at the City of London club starting at 2pm.


The Power of Social Media in Insurance Claims …and Marketing

In a world of innovative products, services, and experiences, today's insurance customers are more reliant than ever on using social media, mobile phones, and PCs. In response to this rapidly changing environment, many insurance companies are transforming their business models to stay relevant to their customers.

Consumers and businesses today don't see themselves as part of the herd but very much as an individual that is part of a social community that they identify with and expect to be treated accordingly. This is particularly relevant for the Lloyd's and London insurance market that operates on the subscription model of shared risks, premiums and claims.

Marketing Benefits

From a marketing perspective where should insurance companies focus? Social media, video, blogging, website or traditional marketing communications, like events or PR? The more savy companies are using digital content to get their story out for lead generation and nurturing. Content marketing is a long-term investment, however. No company would leave its telephone reception unmanned and the same goes for content marketing, which needs attention every day.

Here are five points to consider when communicating your messages.

ACORD Standards: A Beacon of Quality for Insurance Industry Professionals

DOCOsoft joined ACORD in January 2015 and since then we have found that there is huge value in achieving ACORD certification, which is a kite mark of quality. It proves to clients and potential clients that businesses are serious about achieving the highest standards and finding smarter ways of sharing information.

Using ACORD standards provides a number of benefits, including:

  • Enhanced interoperability; systems are able to talk to each other in the same language.
  • ACORD messages can update back office systems and documents can be delivered directly to document repositories.
  • ACORD is a global standard - data becomes international and portable.

From a DOCOsoft point of view, our messaging will work with and for all ACORD certified trading partners while our software also meets universal ACORD standards. Key to building trust with clients is that when they use our messaging they can have confidence that it will work with all other parties. ACORD helps to enable that trust.

Conduct Risk Update

The news that Volkswagen will repair up to 11 million vehicles and overhaul its namesake brand following the scandal over its rigging of emissions tests has come as a shock to markets, consumers and insurers.

Underwriters on the risk will have been aghast at the extent of this manufacturing risk management fiasco but so too will any company and professional in insurance or otherwise that manages Conduct Risk. According to Oliver Wyman: "The spate of conduct risk issues in Europe and the US, from payment protection insurance to LIBOR/foreign exchange (FX) fixing to financial advice have rightly shocked many and have resulted in staggering fines to the industry. Between 2008 and 2012, the cost of conduct for the 10 most affected global banks was estimated to be approximately US$250bn."

As DOCOsoft reported in our last newsletter, from an insurance perspective many Underwriters and MAs have never formally assessed conduct risk or produced Conduct Management Information (MI) so until now there has been no guidance on how to appropriately mitigate the risk. In today's stricter regulatory environment, however, all firms in the supply chain now have more of a responsibility to mitigate conduct risk to the end-insured.

According to legal firm RPC: "The breaches relate to the period April 2011 to December 2012, during which Stonebridge sold Personal Accident, Accidental Death and Accident Cash Plan insurance policies over the phone, targeting middle-to-low income consumers without degrees or professional qualifications."

The Final Notice provides the following examples of Stonebridge's conduct risk failings:

  • "the committee responsible for setting remuneration was not instructed to consider 'TCF' objectives when determining the incentive schemes for its own staff and the staff at the outsourcing companies"
  • "board and executive committees within Stonebridge did not effectively oversee whether the outsourcing companies were adequately addressing the risks affecting customers"
  • "inadequate focus on considering customer specific risks and regulatory obligations when setting remuneration guidelines [...] Stonebridge did not give sufficient weight to addressing the risk of customer detriment when setting up incentive schemes for staff"
  • "Stonebridge did not obtain adequate management information from the outsourcing companies to enable it to identify, measure and manage risks to the fair treatment of customers".

The Future of Lloyd's Direct Reporting
Supporting face-to-face trading and world-class claims management.

Claims professionals as well as their underwriting colleagues will be paying close attention to the ongoing development of the Lloyd's Direct Reporting initiative, which is being strongly promoted by Lloyd's as well as other prominent London market bodies. The initiative strips out an unnecessary layer of cost and introduces significant added value that potentially offers a major competitive advantage to London market carriers.

To understand the case for LDR, you first need to understand the reasoning behind The London Market Group's report, London Matters, which identified a number of key challenges to the position of the London Market, such as its unique requirements causing barriers to entry, while high expense ratios create a price disadvantage. London Matters also focused on how London's lack of presence in emerging markets and declining market share in reinsurance are problems that need to be confronted head on.

Oliver Furner, a Lloyd's Business Analysts says: "London market early adopters such as Catlin and Chaucer have already achieved significant cost savings since the initiative went live in September 2013. Since then Lloyd's has now developed a future-ready, more granular solution that - cost savings of £27 per transaction through the current Xchanging throughput aside - also allows the scope of direct reporting to be increased to all territories and all managing agents with service companies."


Avant Monte Carlo, Le Deluge? DOCOsoft Notes from the Rainy Reinsurance Rendezvous

DOCOsoft sent its roving reporter to this year's Monte Carlo Rendezvous to get the lowdown on the latest conference news and views on the world of (re)insurance.

As the London and international reinsurance markets converged on Monte Carlo for the starter gun to the January 1st reinsurance renewal season, a lot of the gossip across the industry suggested that it was going to be a "boring" year.

As we've heard repeatedly, there would be light catastrophe activity allied with downward pressure on reinsurance rates. Throw abundant capacity into the mix and the result is a somewhat dull and mild cheese sandwich recipe. The reality was quite the opposite, however, as the conference was awash with news, claims information, forecasts and updates on the latest in (re)insurance innovation.

According to Aon Benfield, catastrophe models are commonplace in the non-marine sector but the marine and energy insurance industry has often found it difficult to accurately manage exposures due to the non-static nature of the risks. To date, existing models have offered no differentiation by commodity type, cargo volume or storage configuration. For example, contrasting cargo types such as rubber tyres and electronics could produce the same level of modelled losses.

Meanwhile, the Guy Carpenter party at the Hotel de Paris on Sunday was resplendent with advertising panels declaring the global reinsurance broker's commitment to innovation. Party attendees were treated to a variety of messages on the power of innovation to transform the insurance landscape while they consumed rather delicious canapés and Champagne. The DOCOsoft roving reporter refused to indulge in such fripperies of course. For the first couple of minutes anyway!

The Insurance Soft Market - It's Deja vu All Over Again!

To quote the recently deceased baseball legend Yogi Berra: "It's deja vu all over again!"

Berra was of course referring to an incident on a sports field but he could equally have been referring to reinsurance naval gazing by many "traditional" reinsurance individuals at this year's Monte Carlo 2015 gathering focusing on the seemingly never ending soft insurance market. What is causing these soft market conditions?

Well, a Monte Carlo reinsurance update published by Aon Benfield says that: "Asset managers continue to exercise discipline in their interest in the insurance space, but substantial capital is available to enter to meet new sources of reinsurance demand. Reinsurance capital stood at USD565 billion at the end of Q2 2015, as stable operating earnings aided by continued light catastrophe activity were offset by currency fluctuations."

DOCOsoft Through to Finals of the Insurance Day Awards 2015

DOCOsoft made it through to the Finalist Stage of the Insurance Day Awards in the Adviser of the Year category.


November 5th Xchanging Conference

It has been announced that guest speaker Will Carling has been added to the agenda for the 5th November Xchanging Conference. We are sure that he will have some interesting things to say about England's performances before bowing out of the World Cup so early!

In keeping with DOCOsoft's Rugby World Cup theme in our newsletter, we echo the conference organisers thoughts that with the current hype surrounding this year's World Cup, we couldn't think of a more suitable guest speaker to close the event in November - although some members of the DOCOsoft team argued that the organisers missed a trick by not inviting Brian O'Driscoll!


DOCOsoft Goes Karting And Meets A Legend

DOCOsoft's team of (not so) fast-paced petrol-heads put members of the London market claims community, through its paces on the 4th September when we hosted a Go Karting day at the Buckmore Park racing circuit.


Write Back Go Live Event - 19th November

Pencil in the date of the 19th November between 2pm - 5pm when DOCOsoft will be demonstrating the capabilities of its new Claims Management System, which underpins LMA initiative Write Back. A formal invitation will be sent out very soon so please pencil this evening's date into your diary. Venue: City of London Club

2015 Christmas Party - 26th November

We will be hosting our Christmas Party this year at the Old Tea Warehouse on the 26th November in the evening, from 5:30pm. A formal invitation will be sent out very soon but in the meantime please pencil this evening's date into your diary. Venue: Old Tea Warehouse