Redbox Systems Provide Insurance Solutions For Risk Carriers Using The Internet

Are you a part of the Internet revolution?

Ground breaking new product is an on-line ASP solution for the UK’s commercial insurance sector. We are not a broker or an insurer but a facilitator of communication between these parties in the placing of insurance risks.

As the Internet market place continues to grow, brokers and insurers without the capability of trading online will lose business to those who can.

While insurers are looking for ways to take advantage of the potential cost saving offered by the Internet, the more progressive broker is looking for ways to streamline the process and achieve cost reduction, yet provide his important ‘value add’ to arranging insurance cover. CoverMaker is unique in its capability to offer a solution to a wide range of commercial insurances, including commercial combined, and offers not only the ability to place the more commoditised insurance risk but also the more complex risk that requires a bespoke proposal. Application is not prescriptive about the way insurers approach underwriting, whether this is manual or through an automated rating engine.

Vision is to create a low-cost efficient distribution mechanism between brokers and insurers. The Internet provides the perfect vehicle. Consequently our customers do not need to invest in new hardware and software nor download programs. All they require is access to the Net.

CoverMaker’s user-friendly ‘windows-style’ application makes it easy for brokers to provide high-quality submissions to insurers. Our unique profile builder enables CoverMaker to handle a wide range of commercial risks from simple packaged business to complex commercial risks. CoverMaker does not require any heavy commoditisation of these risks, which is so often a prerequisite of insurance Internet systems.

Brokers using the system maintain control over their submissions until the risk is bound and with CoverMaker’s full audit trail facility, any queries between brokers and underwriters can be easily and quickly resolved. Although CoverMaker is an Internet system, it’s anything but impersonal. We have taken care to preserve established relationships between brokers and underwriters. We have our own messaging service allowing one-to-one dialogue even though the broker may have offered the risk to a number of insurers.

Insurers receive a high quality electronic submission, which can be printed out for manual underwriting or integrated into their internal quotation systems. Individual underwriters can receive early advice of declinature and speedy feedback on their quotations. CoverMaker also provides a ‘shop window’ for insurers to market new products to brokers.

The application is hosted securely and utilises 128-bit encryption. It is built in market proven Java technology. The three-tier object orientated application resides upon an Oracle database that provides flexibility, scalability and robustness.

Formed in July 2000 by three organisations, the Broker Network, Sysao plc, and Capricorn Ventures International. Redbox Systems Ltd’s purpose is to provide insurance solutions for risk carriers using the Internet. Redbox’s first commercial service is CoverMaker.net. Through these founders Redbox has a competitive advantage enabling it to not only work closely with its customers to meet their needs but through Sysao and in particular its e-Commerce division Goldhive, provide Redbox with a superior delivery capability.

The Broker Network Limited (BNL) was created as an umbrella organisation for insurance intermediaries, providing many of the facilities they require from one central source. Today it has a membership of 80 brokers with an annual GWP in excess of £100m. In 2000 it opened an underwriting room that currently houses AXA Insurance, Avon, Cornhill and Hiscox. BNL is committed to getting their member brokers on-line with CoverMaker.

Sysao plc is the premier provider of integrated business and e-Business solutions based on Oracle technology and applications, and is the UK’s largest independent value-added Oracle reseller. Over the last four years Sysao has successfully implemented over 100 major projects.

Goldhive, Sysao’s e-Commerce division, built the first release of the CoverMaker application.

Capricorn is an international investment holding company specialising in insurance and related businesses. The team from Capricorn provide their experience and expertise in managing insurance investments and have provided the seed capital to build the application.

Old Press Releases – Know its Histroy

Redbox Systems Limited, the company responsible for developing CoverMaker.net – the groundbreaking commercial insurance trading application – announced that it was establishing a closer alliance with The Broker Network (BNL) as part of its growth strategy.

BNL, a network of more than 100 independent insurance brokers, was one of three founding shareholders in Redbox Systems, and has played a key role in piloting the CoverMaker system with a selected group of its members.

The move reinforces CoverMaker’s aim to become the leading commercial insurance portal for all regional brokers, enabling a refocusing of activity to drive up the transactions through the portal from its existing customer base, which already includes some non-BNL brokers. Grant Ellis, Managing Director of The Broker Network, said: “We are delighted to take the lead in moving the CoverMaker project forward, for the benefit of the insurance industry as a whole. We remain committed to extending the system not just to network members, but to all brokers who place business in the UK markets.”

Commenting on the changes, Sir Laurie Magnus, Chairman of Redbox Systems said: “The management of Redbox are now able to develop CoverMaker with the company’s future firmly underpinned by BNL as its majority shareholder. The Board believes that CoverMaker has the foundations in place to become the premier provider in the UK commercial lines market.”

Liz Latter, Redbox’s Managing Director, explained: “This move provides Redbox not only with a secure financial future, but also with a base on which to achieve sustainable growth. There is a pressure to sign up as many brokers as possible, however it is only through those brokers repeatedly using the system and it becoming a part of their daily processes that brokers and insurers will start to realise the substantial cost savings. This new arrangement will allow us to focus activity on increasing the volume of business being placed via the portal.”

CoverMaker, which has been well-received by both brokers and insurers, offers the ability to place a wide range of commercial insurances through a streamlined process, and is suitable not only for package business, but also for complex risks for which bespoke proposals may be necessary. CoverMaker does not require investment in new hardware or software and, unlike other Internet-based propositions, allows for one-to-one dialogue between broker and underwriter.

That most traditional of British businesses, the insurance Industry, is at last set to join the dotcom revolution.

Whilst the majority of insurance eCommerce initiatives have focused on personal insurances and mainly in the B2C sector, the area that shows the most potential for cost saving is in the B2B market and in particular provincial broker to insurer. The business placed through provincial intermediaries is generally profitable to insurers and the same client often stays with his broker year on year, father to son. But, to the large insurer this business is expensive to administer efficiently. Unbelievably, it is estimated that 90% of this business is still handled by phone, fax and paper.

This 5,000 strong network of brokers, who do not have large IT budgets on which to develop their own eCommerce initiatives, place over £3 billion of commercial insurance business in the UK each year.

Next month (March) will see the launch of a new eCommerce service for just this segment of the market. CoverMaker.net will open its doors – or rather its domain – to brokers and insurers transacting commercial business in the UK. The service offers a secure trading environment, which allows brokers to provide high quality submissions to insurers more cost-effectively via the Internet.

Liz Latter, MD of Redbox Systems, the company that developed the system said: “The internet provides the ideal vehicle for delivering cost savings to the commercial insurance market. We wanted to create a solution that delivered these cost savings through streamlining the current process yet capitalising on the personal relationships between brokers and insurers. The problem with many Internet initiatives is that they depersonalise the process. CoverMaker does not.”

CoverMaker is already on trial with a number of insurers and brokers from the Broker Network, an organisation of more than 80 brokers placing over £100 million of business a year. Richard Guthrie of Donald Rigg Insurance Brokers, a member of The Broker Network said: “CoverMaker is probably what insurers and brokers have been looking for the past three years or so. It will do more to simplify processes and reduce the masses of paperwork since Lloyds was a coffee shop.” Mr Guthrie is one of the brokers currently trialing the new service.

The cost for CoverMaker will also appeal to this segment of the market where expense ratios are under scrutiny. There’s no need to invest in new software and operates with only a small commission charge to insurers – initially set at 1% for the early adopters.

Sir Laurie, an investment banker, has been the driving force behind many major deals within the London Market, most notably in the establishment of Limit, the largest corporate capital vehicle at Lloyd’s. He has also advised on transactions involving; Amlin, Cox, Kiln, Ace, Wellington, BRIT Insurance, Ockham, Jardine Lloyd Thompson, Heath Lambert Fenchurch, Marsh McLennan and HSBC Group. Most recently, Sir Laurie has been heavily involved in the LPSO/LPC merger discussions.

Educated at Eton and Oxford, Sir Laurie spent 18 years in HSBC Samuel Montague’s corporate finance division before joining Phoenix Securities in 1995. Phoenix was acquired by Donaldson, Lufkin & Jenrette, the US investment bank, in 1997, where Sir Laurie was a Managing Director in the Financial Institutions Group, which in turn merged with Credit Suisse First Boston in 2000. In May this year, Sir Laurie will join Lexicon Partners, a privately owned corporate finance advisory business, as Vice Chairman.

Sir Laurie commented: “I am very excited to be joining Liz Latter and her team in developing CoverMaker.net. It offers an effective customer responsive platform between brokers and insurers which can add real value to the delivery of insurance services”.

Commenting on the move, Liz Latter, MD of Redbox Systems said: “I am delighted that Sir Laurie has agreed to join us. He brings an extremely astute financial and strategic perspective which will be so important to Redbox as we develop and grow the business.”

MD of The Broker Network, Grant Ellis, one of the founders of Redbox commented: “Having seen Redbox take CoverMaker.net from concept to a launch, it is encouraging that someone of Sir Laurie’s blue-chip credentials also recognises the market opportunity in this sector and believes in Redbox’s ability to deliver.”

the groundbreaking commercial insurance trading application – announced that it was establishing a closer alliance with The Broker Network (BNL) as part of its growth strategy.

BNL, a network of more than 100 independent insurance brokers, was one of three founding shareholders in Redbox Systems, and has played a key role in piloting the CoverMaker system with a selected group of its members.

The move reinforces CoverMaker’s aim to become the leading commercial insurance portal for all regional brokers, enabling a refocusing of activity to drive up the transactions through the portal from its existing customer base, which already includes some non-BNL brokers. Grant Ellis, Managing Director of The Broker Network, said: “We are delighted to take the lead in moving the CoverMaker project forward, for the benefit of the insurance industry as a whole. We remain committed to extending the system not just to network members, but to all brokers who place business in the UK markets.”

Commenting on the changes, Sir Laurie Magnus, Chairman of Redbox Systems said: “The management of Redbox are now able to develop CoverMaker with the company’s future firmly underpinned by BNL as its majority shareholder. The Board believes that CoverMaker has the foundations in place to become the premier provider in the UK commercial lines market.”

Liz Latter, Redbox’s Managing Director, explained: “This move provides Redbox not only with a secure financial future, but also with a base on which to achieve sustainable growth. There is a pressure to sign up as many brokers as possible, however it is only through those brokers repeatedly using the system and it becoming a part of their daily processes that brokers and insurers will start to realise the substantial cost savings. This new arrangement will allow us to focus activity on increasing the volume of business being placed via the portal.”

CoverMaker, which has been well-received by both brokers and insurers, offers the ability to place a wide range of commercial insurances through a streamlined process, and is suitable not only for package business, but also for complex risks for which bespoke proposals may be necessary. CoverMaker does not require investment in new hardware or software and, unlike other Internet-based propositions, allows for one-to-one dialogue between broker and underwriter.

Redbox Systems, the company behind CoverMaker.net has appointed Tim Bradley as IT Director.

He joins the company from Intrustworld Holdings AB, based in Uppsala where he was Project Manager at the Swedish ASP for the life assurance industry. Previously, he was Director at Rebus IS (formerly Datasure) in London.

Tim’s career in IT has been spent entirely within the insurance sector and he takes up his new position with Redbox Systems as CoverMaker.net – which allows insurance risks to be placed via the internet – is attracting growing interest from brokers and insurers alike.

Commenting on his appointment, Tim said: “CoverMaker has learnt many useful lessons from previous e-trading initiatives and its development offers a flexible, highly usable system which is ideal for the commercial insurance sector.”

Redbox Systems debut appearance at BIBA has already brought in a significant volume of new business enquiries for its CoverMaker system which utilises the internet to deliver cost savings to the commercial insurance market.

The Redbox team carried out over 60 demonstrations of the system to BIBA delegates during the course of the conference. Liz Latter, MD of Redbox Systems said: “BIBA was extremely successful for us – there was an enormous amount of interest in CoverMaker and we had the advantage of demonstrating a product on which we are already transacting live business.”

CoverMaker already has AXA, Independent and Aioi (previously Chiyoda) on board and expect to formally sign up three other leading insurers within the next month.

One of the main talking points of BIBA were the specially produced “ReCoverMaker” kits, containing a range of useful items, that also helped bring a steady stream of visitors to the Redbox Systems stand. But as conference closed on the Friday, superb timing saw the heavens open – bringing an influx of people back on the stand to collect their CoverMaker brollies which were then seen fanning out across the streets of Belfast.