Axe

ARPC is a statutory authority established to administer the Australian Government’s terrorism insurance scheme. The scheme provides reinsurance cover for terrorism risk relating to commercial property and infrastructure, and associated business interruption and public liability claims.

The Terrorism Insurance Act 2003 commenced on 1 July 2003 and was established following the withdrawal of commercial terrorism insurance cover by insurance companies following the terrorist attacks in the United States on 11 September 2001.

Insurance companies are able to reinsure the risk of claims for eligible terrorism losses through the ARPC. Premiums insurance companies pay for reinsurance to the ARPC have built up the first pool of funds which is now available to cover claims from DTIs.

The scheme now has more than 250 clients globally, including over 50 Australian-based insurers.

In 2005 Axe developed and implemented the ARPC Online Risk Aggregator System (ARAS) – an internet-based system that streamlined ARPC’s data collection – giving it much greater flexibility in analysing and using the data it was collecting. This system provided for the automation, collection, and aggregation of data from the insurers which choose to purchase terrorism reinsurance from the ARPC.

The implementation of this initial system for complex data gathering had cut processing time down from several weeks to virtually nil.  It enabled over 200 insurance companies to deal with ARPC easily, and created a faster, more secure and auditable process.

For the next step ARPC sought to extend the capabilities of its existing system to include additional functionality such as automated premium return reporting. It also sought to provide a secure, single portal for clients to use to lodge these returns, and finally, it required a central information source for the storage of customer data. From these requirements the RISe project was born.

Based on a Microsoft .NET architecture, the Axe Services team was able to build a system that met all of ARPC’s requirements.

During 2007-08, the Axe team developed and implemented the RISe system to consolidate and better manage information key to ARPC’s operations. The purpose of the RISe system was to streamline the management of client information into one system and provide one place for insurers to electronically lodge all the information required by ARPC within a secure and user friendly environment.

The RISe system:

• Collects quarterly account information from over 250 insurers
• Enables insurers to submit their annual aggregate exposures by postcode
• Stores data submitted by insurers
• Offers insurers information on their market share for eligible risks
• Provides an effective method for insurers to lodge initial incident reports for the purpose of gathering information on likely claims
• Provides a claims approval and reporting process and incorporates required adjustment calculations in the event of a DTI.

Insurers are now able to log into a secure website, through which they can upload the information they need to provide to ARPC including quarterly premium returns, annual verification of details, aggregate exposures, submission of loss estimates and claims submission.

Insurers also have access to view a series of reports generated from the information provided by all of APRC’s clients, including a report showing prior returns, and a market share report based on the information clients have submitted given as a percentage of the total aggregate for premiums, exposures and, in the event of a DTI, claims.

Consistent communication channel to improve client service levels

The RISe system provides for a consistent channel of communication between insurers and ARPC, leading to improved levels of service. As all core data is submitted in the same format this has lead to increased automation of data compilation and reporting. The electronic submission of data enhances ARPC’s ability to analyse and provide intelligent reporting based on that data.

Increased number of manual processes now automated

Automating processes has benefited ARPC in many ways. The introduction of the automated submission of information through RISe has assisted in reducing the likelihood of clients not providing ARPC with information it requires to conduct its business. ARPC’s clients are benefiting from submitting reports online as RISe provides an easy to navigate environment which reduces the time needed to submit the information.

Improved ability to cope with a Declared Terrorist Incident (DTI)

The RISe system incorporates automated claims processing which allows for the efficient and accurate recording of incidents. DTI information can now be directly captured in the RISe system which enables ARPC to quickly calculate what response is required depending on the magnitude of the incident.

Additional work is underway to update the look and feel of RISe in line with ARPC’s branding. ARPC is committed to continuing to enhance RISe to ensure its clients obtain the maximum advantage from the technology and Axe will continue to work with ARPC to ensure that any future maintenance or enhancements are completed successfully.