23 April 2001
Sir Brian Pitman, speaking at the launch of insurance technology solution provider, Acturis, called on the commercial lines insurance industry to reduce the £lbn wasted each year through inefficient transaction handling.
Sir Brian, chairman of Acturis and former chairman of Lloyds TSB, comments: "The commercial lines insurance industry is currently fragmented and extremely inefficient. With large amounts of duplication, manual processes, errors and incompatible systems absorbing 34 per cent of all premiums, it's no wonder that the commercial lines sector is struggling to make a profit. 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,"
Acturis' analysis of the commercial lines insurance process identifies some shocking statistics:
Theo Duchen, co-chief executive of Acturis, declares: "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, which originated from a project called 'Riskline', will provide brokers with a Web-based technology platform to support administration and to give access to innovative, new services which in turn foster growth and make broker operations more efficient.
The solution consists of several key connected components:
David McDonald, co-chief executive of Acturis, declares: "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".
"Acturis have adopted a 'partnership' approach with several leading businesses".
"Acturis partners such as brokers Bland Bankart, Smart and Cook, Independent, Norwich Union, other major insurers, Nedcor and TCS have all played a key role in the development of the solution".
"That way, we make sure that our solution addresses the real industry needs right from the start".
Philip Bland, chairman of Bland Bankart: "There is an overwhelming need for change within the industry, and working with Acturis provides the breath of fresh air called for".
"Their innovative thinking and practical approach is exactly what we require to prepare our businesses for the future".
Paul Meehan, chief executive of Smart and Cook, declares: "Brokers will gain tremendous benefits from the new technology and innovative thinking that Acturis provide".
"These benefits include the reduction of costs, elimination of errors, and improved customer service".
"Implementing the Acturis solution at Smart and Cook is expected to significantly increase our profitability".
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