01 May 2001
By Jon Guy
The head of a new internet-based commercial lines insurance platform has said the industry has allowed the sector to become fragmented and extremely inefficient, warning that shareholders and clients would no longer stand for the £1bn cost of its inaction.
Sir Brian Pitman, speaking at the launch of insurance technology solution provider Acturis, called on the commercial lines insurance industry to reduce the £1bn wasted each year through inefficient transaction handling.
Sir Brian, chairman of Acturis and of Lloyds TSB, said: "The commercial lines insurance industry is currently fragmented and extremely inefficient. With large amounts of duplication, manual processes, errors and incompatible systems absorbing 34% of all premiums, it's no wonder that the commercial lines sector is struggling to make a profit".
He added; "Both brokers and insurers must act quickly to reduce costs and improve service levels and profitability. The possible cost savings are becoming too great for customers and shareholders to ignore".
Sir Brian presented the results of the company's analysis of the commercial lines insurance process, which found:
Theo Duchen, co-chief executive, said: "Both efficiency and client service are currently taking a back seat in the insurance business. The industry is notoriously inefficient and there is severe duplication between the broker and other parties in the chain.
Acturis aims to provide brokers with the tools to improve efficiency, saving the industry millions of pounds each year".
Acturis originated from the Riskline product and will provide brokers with a web based technology platform to support administration and give access to innovative, new services that in turn foster growth and make broker operations more efficient.
Acturis co-chief executive David McDonald said: "Acturis will offer brokers more than a system, as technology alone will only reinforce existing inefficiencies. The Acturis solution is made up of approximately one-third technology, one-third process redesign and one-third product and service innovation".
The company has adopted a "partnership" approach with several leading businesses such as brokers Bland Bankart, Smart & Cook, Norwich Union and other major insurance companies.
Bland Bankart chairman Philip Bland added: "There is an overwhelming need for change within the industry, and working with Acturis provides the breath of fresh air that is called for. Its innovative thinking and practical approach, is exactly what we require to prepare our businesses for the future".
Press Article listings