How do I connect?
The Exchange allows a transition to electronic messaging through a variety of starting points. By allowing choice in connection option an environment has been created where each organisation can choose a solution that best fits their own internal priorities and requirements.
Entry level is dependant on how much you want to invest and the level of benefit you want to achieve. Full integration will deliver the greatest value to the organisation and is most appropriate for those participants who are fully committed to the electronic transfer of data.
Connection options
The same connectivity options are available to all market participants; Brokers, Lloyd’s Managing Agents and Company market carriers.
Message management tools (MMTs)
The message management tool is an appropriate connection option for those who want to engage with electronic messaging without committing to the expenditure and time commitments of full integration. Information will not automatically enter internal systems and will still need to be re-keyed, however time savings and speed of placement benefits can still be realised.
These packages provide a range of functionality depending on which supplier is chosen. Typically they will provide message history, tracking/status indicators and individual message inboxes. Suppliers can host the systems for you or they can be deployed in your own environment according to your requirements.
Whilst MMTs do not initially integrate with back office systems there is a clear upgrade path available from most suppliers which will enable integration at a later date.
Trading platforms
Trading platforms offer a trading service which handles the risk distribution and placement process electronically, most usually via a web browser. Like the message management tool they can ultimately integrate with back office systems.
Integration with back office
Some organisations will want to develop their own direct ACORD compliant connectivity to the Exchange from internal systems. This allows for messages to be composed from internal systems, and ensures that data contained within responses is appropriately downloaded and managed, with additional opportunities to integrate workflow.
IT suppliers
There are a number of companies who provide the gateway software that enables messaging, message management tools and integration services. Please contact us for a list of key suppliers.
The costs
The cost of your connection option will depend on which supplier you chose, the functionality required, your overall IT strategy including how sophisticated you are with integration.
Each supplier will have a different commercial model. In some cases it may be a simple licence fee, while others may charge per message, per bind or a combination.
It is important that you fully understand the costs associated with your connection option for your own organisation and for your trading partners; some suppliers will charge both parties and the impact of of this will need to be understood.
