REG is building a revolutionary network of trusted counterparties, reducing duplication and creating a gold standard across the insurance market, writes Paul Tasker, Managing Director of REG (UK) Ltd.
What makes an insurance business competitive? What’s the differentiator when talking to a new client? At REG, we doubt it’s anything to do with counterparty risk management. All that due diligencework has to happen, but can’t it be made cheaper and more efficient?
Every insurance business has its own network of counterparty relationships, from brokers and carriersto vendors and service providers. The overall mix might be unique, but the individual counterparties dealt with are shared by many others. That means there’s a whole lot of routine due diligence work being duplicated across the market, in many cases still using manual processes.
With firms responding to numerous ‘standard’ diligence requests and a staggering duplication of effort, we ask is the insurance market working smart? At REG, we know the answer is no. Instead, we believe this is an area where insurance technology can create massive efficiency savings at a time when the industry needs it most.
We already have a network of trusted users. Our software manages the counterparty risks that insurance businesses incur daily when dealing with other entities, carrying out those due diligence checks on behalf of our clients. We’ve automated hundreds of processes to reduce risk and add efficiency, allowing customers to meet shifting governance and compliance requirements instantly and on an ongoing basis.
We are not just ensuring counterparties are effectively managed via a comprehensive tech solution, we are also building a network of users.
Collectively, businesses that use REG form connections with each other. In turn, members of one customer’s network are also members of their own wider network, and are already being monitored for regulatory, credit, legal and data protection purposes. As the network grows, and becomes increasingly interconnected, every participant benefits whilst having complete security and privacy of their data and relationships.
What we want is for every insurance business to be included within the REG Network. Once a business is verified within our network it enables everybody else within the network to connect with them, assess them and form a one to one private relationship. The aim is to create a gold standard of business for counterparty due diligence throughout the market.
Our network will connect the industry and allow members to trade with each other faster and safer – a gateway to frictionless trading relationships.
Ultimately, delivering accuracy, reducing risk and increasing efficiency not only benefits our customers, but their policyholders too. The REG Network has revolutionary potential in a sector that needs to manage risk effectively and manage processes efficiently.