CSRP – where to now?
CSRP is planned to go live with AON Benfield at the end of April on premiums only, with claims deferred to mid summer. It is good to see this very important initiative ready to go live (at least with premiums) on time. It is now vital that the outbound process is now addressed.
The current ACORD4ALL implementation of the GRLC standard used by the Bureau is a transform of the legacy EDIFACT message and as such is constrained in the following ways:
Multiple territories are not contained within a single TA, instead separate TAs are sent for each territory, meaning that the carrier reconciliation process is more complicated than needs to be, and this complication re-occurs within cash matching.
On the FA side, there is a one to one relationship between TA and FA. FAs are subsequently grouped by a common reference which reflects the netted cash movement into the carrier’s bank account.
Unlike the Bureau, where an FA is a settlement message which denotes the actual movement of cash, in the non-Bureau paradigm it represents a remittance advice, ie an advice that cash movement will take place on a given day. This means there is a missing part of the settlement cycle within the Ruschlikon process which is the reconciliation of the bank statement to the FAs. The NetSett initiative is working with ACORD to develop a settlement message, but the process between the Bureau and non-Bureau needs to be synchronized wherever possible to ensure optimal consistency between them.
Currently, Bureau processing is different from Ruschlikon, and different processing required for London.
I would expect that the Bureau processing is brought in line with Ruschlikon’s guidelines whereby:
• EBOT messages are used for both TA and FA;
• FA messages are used in the Bureau as they are in Ruschlikon – ie as a remittance advice;
• Introduction of settlement messages will denote actual movement of cash;
Scyllogis’ Effikacy application processes both ACORD4ALL and EBOT straight through into carriers back office systems. We have been able to merge the two different processes into a single solution demonstrating that it is possible to merge the processing.
The move from ACORD4ALL to EBOT will ensure that organisations that operate in both the London Market and non Bureau markets will be able to significantly decrease the time taken for receiving and processing of ACORD Technical Account and Settlement messages.
With only one process to implement, significant time and cost savings will be implicit.