Trading between insurance companies — also known as inter-company processing — will soon be possible with Netsett platform, a financial software developed by Xchanging and Deutsche Bank.
Originally launched as a concept in late 2012, the Netsett platform provides global accounting and net settlement using structured data. It enables the exchange and settlement of accounting information automatically and efficiently.
In a joint press statement, Xchanging and Deutsche Bank announced that Willis, Cooper Gay Swett & Crawford (CGSC) and Ruschlikon UK members, ACE, XL Group and Generali will be participating in the pilots of the Netsett platform. One of the world's top three global insurers has also signed a Letter of Intent to pilot the platform in five business units across North America, Asia and Europe.
According to Max Pell, managing director of Xchanging Insurance Services, the Netsett platform will address specific needs of the insurance sector globally. "We have used our expertise within the London market, and taken this out to a global audience - replicating some elements of the Bureau to bring the benefits of enhanced cash liquidity and operational cost savings to the international insurance market."
When asked about the benefits they expect to gain by implementing Netsett, pilot participants said that the platform will enable them to be more efficient. For instance, Peter Sammons, head of reinsurance central processing of XL Group, believed that Netsett will "streamline the company's cash process externally and the handling of internal cash transfers". Richard Brame, Willis Group's director of accounting and settlement, on the other hand, said that Netsett will "allow transactions to be managed electronically from processing to settlement via one process without manual intervention."
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