B2B gateways: the missing link?

We are all well aware that many column inches have been dedicated to how brokers are using and investing in technology. Brokers, many of whom have invested heavily in IT solutions, can hardly be accused of not moving with the times.

Indeed, perhaps the biggest single challenge in both the retail and wholesale insurance sectors is the fact that not all brokers and insurers have invested in technology at the same rate.

In an ideal world there is a pan-insurance industry solution, whereby a broker, irrespective of what back-office system they use, can place a quote for whatever line of business, to all product providers seamlessly, without the need for either to re-key data or change systems.

In reality, we have a myriad of technology systems struggling to find ways of connecting with each other. There are IT solutions available in the market, commonly known as business-to-business gateways, which are effective regardless of the technology either a product provider or broker has installed.

Essentially, this means if one party can capture the data in a structured format, the gateway solution can deliver it to their business partners in the format they require.

Most businesses in the insurance market trade by the established electronic data interchange route. However, all new industry initiatives are based on using the more modern XML messages. A gateway, or electronic babel fish as I prefer to fondly refer to them, helps translate between one style and another. Everyone can enjoy competitive advantage and businesses can drive out the unnecessary costs associated with re-keying of data and human errors etc, as long as data standards are agreed.

Some feel threatened, believing this is the slippery slope to commoditising complex risks. This is not the case. Quite simply, this is about embracing the opportunity to do more business, more effectively. Technology used wisely, technolgoy that unlocks the potential in your existing systems, can augment the underwriting skills and expertise within your organisations.

It cannot and is not intended to replace them. We must adapt and ensure that the UK drives unnecessary cost, risk and waste from its current trading practises, if we are to thrive and maintain our reputation as the market of choice on the global insurance stage.

- Debbie Baker, Insurance unit director, Kewill.