Xchanging, a London-based business process, procurement and technology services provider has launched Netsett, the vendor's accounting and net settlement utility, to the U.S. market at the ACORD LOMA Systems Forum in Las Vegas on Monday.
Resulting from a partnership between Xchanging and Deutsche Bank, Netsett seeks to replicate the cash liquidity and operational cost savings benefits that the London insurance market has enjoyed through central settlement platforms.
In a conversation with Insurance & Technology, Max Pell, managing director of Xchanging's U.K. Insurance Sector, sought to validate a published claim by the vendor that Netsett has the potential to transform the way that global insurers and brokers transact financial settlement. In the london market, premium and claims payments total roughly $80 billion dollars, but daily netting down through settlement processes means that only about $12 billion actually changes hands — which frees up significant capital for more productive purposes, among other benefits. With Netsett, Xchanging, in partnership with Deutsche Bank, will attempt to bring similar efficiencies to a much larger market.
"The addressable market globally is at least $3 trillion, with the possibility of a 85% reduction in the working capital required," Pell says. "Given that scale, I'm seeing this as a transformational play in the market."
The launch of Netsett yesterday at the ACORD LOMA Systems Forum follows a rollout in Asia in February, and the successful completion of phase one in the U.K. in January. The second phase of Netsett, which the vendor says will deliver full end-to-end ACORD capability and a Ruschlikon-compliant process is scheduled for release in the third quarter of 2013.