Netsett is Xchanging's new global initiative that uses structured data to enable organisations to exchange and settle accounting information. Xchanging believes Netsett will transform the accounting and settlement processes of the global insurance market. Netsett builds upon the principles and benefits enjoyed by the London market, making net settlement available to the open market.

Netsett is a netting and settlement solution designed to deliver operational efficiency, transparency and capital efficiency benefits to participants through the implementation of a centralised, multi-lateral, multi-currency engine platform for premium and claims flows within and between global cedents, brokers and carriers.

Utilisation of the solution will act as a catalyst for change and provide the opportunity to achieve significant benefits across participating organisations.

Designed by Xchanging, powered by Deutsche Bank
Xchanging and Deutsche Bank are working together to develop this new service, with support from the International Underwriting Association and working with ACORD. Xchanging and Deutsche Bank are preparing for an operational pilot, with RSA as one of the first to test this solution.

In addition, Xchanging and Deutsche Bank are working with Aon and Transatlantic Re to validate and refine the operating model for the solution.

The solution uses Xchanging's existing message management technology combined with a central reference ledger for the storage and agreement of transactions. Deutsche Bank's global transaction banking, clearing and FX capability powers the netting and settlement process and facilitates a single, netted payment for all counterparty liabilities in each settlement cycle.

Max Pell, Managing Director at Xchanging comments: "Xchanging are leaders in the use of standard, structured data to facilitate back office processing. In our partnership with Deutsche Bank, a leading globa global bank, we have the ability to offer a utility that delivers real and lasting commercial value to the insurance market. The solution enables organisations to exchange ACORD messages for both premiums and claims. Deutsche Bank will handle all client money and power a settlement cycle that will enable financial transactions to be netted between participating counterparties"

Michael Spiegel, Global Head of Trade Finance and Cash Management Corporates, Global Transaction Banking, Deutsche Bank continues: "As a leading provider of financial services solutions to the insurance industry, we were delighted to be selected as partner by Xchanging. Based on our platform strength, technical expertise and renowned FX capability, coupled with our extensive global network, we are well-positioned to power the Netsett solution. We look forward to building on our strong relationship to deliver transformational change to the insurance sector."

Dan Ferguson, Treasury Manager, RSA concludes: "The features of the Netsett solution have the potential to address long-term issues in the management of balances across multiple currencies between counterparties. We believe it will improve the management of our cash-flow, reduce demand for liquidity, especially in volatile currencies and reduce our exposure to FX risk. This is in addition to the efficiencies that we will gain from using structured data rather than manual processes to agree and settle balances between our subsidiary balances."