TGSL Caps Transaction Fees & Delivers Schemes FOC Pre-Live
The more volume an insurer puts through Transactor, the earlier they hit their free trading period.
Winchester, United Kingdom, April 2008. Transactor Global Solutions Limited (‘TGSL’) has reached formal agreement with all of its 22 supporting insurers to deliver open market motor and household insurance products free of charge prior to live date, with the costs recovered from trading on a transactional basis. This is in stark contrast to the high implementation fees levied by the legacy solutions, and the seemingly random approach some of them adopt to transaction fees. “The broker has the clients, the insurer has the products, and we have the technology. If we all work together, each shouldering a fair share of the risk, together we can really make some waves,” confirms Ray Vincent, Managing Director, TGSL. “Our approach means that the more business an insurer does with Transactor, the cheaper it becomes.”
“So that is why TGSL offers a consistent, documented and contractually secure approach when it comes to trading on its quotation platforms,’ continues Vincent. “We basically do take our share of the risk and charge nothing for new product implementation prior to live date. Thereafter we recover the cost of building and maintaining the product through transaction fees. Once we have achieved recovery, we provide reduced fee trading, then free trading until contract anniversary. The more volume an insurer puts through Transactor, the earlier they hit their free trading period. At anniversary, we simply adjust the transaction fees by the relevant RPI figure, and kick off the cycle again. If we cannot recover our costs, it is at our risk, but we have had a great two years with this approach, because insurers only launch product they think is going to succeed, and they normally get it right. Our approach makes us a brilliant trading partner for innovative insurers who want to be in a position to manage their costs, but at the same time be comfortable with a bit of a ‘punt’ if an opportunity presents itself. I like to think we reduce the risk to the insurer and broker when a new product is launched.”
TGSL is a relatively recent entrant into trading using open market rating (‘OMR’), hitherto being mainly recognised as a solution for delegated authority trading only. “Since we entered the OMR arena in 2005 we have watched the volumes of Transactor EDI and electronic bordereau trading soar to over 1,500,000 transactions per annum and they are still rising”, confirms Ron Pease, Technical Underwriting Manager, TGSL Milton Keynes. “We have put on nearly 400 private motor, motor-cycle, and commercial vehicle schemes in that period, and now we are experiencing similar explosive growth in household OMR delivery. All of our insurers are signed up to the ABI standard Service Level Agreement, and whether they are Polaris supporters, or dependent on TGSL toolsets, they all get the same first class response and fix times.”
For further information please contact tony.withers@transactorgsl.com