The commercial lines insurance industry was last week branded as inefficient and fragmented at the launch of technology solution provider Acturis, which claimed £1bn was being lost annually due to shoddy transaction handling.
Chairman of Acturis and former chairman of Lloyds TSB, Sir Brian Pitman said 34% of premiums were being swallowed by "duplication, manual processes, errors and incompatible systems", and that shareholders and customers were unlikely to tolerate such wastage in the near future.
He also pointed to research carried out by the company which found 50% of documentation sent to brokers by insurers was incorrect and that 30% remained so when re-sent.
The solution proposed by Acturis will comprise different components, providing a back office system on an application service provider model, a mechanism to create new products, an online environment to pass data, a management information system and a task management system.
Joint chief executive of Acturis David McDonald said there would be no rash promises on a delivery timetable, adding that the aim is "to have the first usable version with broker partners by early 2002".
The company has adopted a partnership approach with those already onboard, including brokers Smart and Cook and Bland Blankart; and insurers Norwich Union and Independent.