We are about to visit RealXS, developers of software for insurance markets.
I will just read out a few sentences from the press release:

"In it, RealXS claims to have found a solution to the ever-rising cost of IT."

"With RealXS, one can install, offer and continue any insurance product."

"This software offers a turnkey solution for people who want to be able to automate insurance products themselves."

"No need to consult IT specialists or programmers anymore."

"A bevy of parties are active in the insurance market:
Insurance companies, intermediaries, Insurance brokers, Authorised Agents, Mutual societies and
bread funds.
They can use this software to continue old products and offer new products.
They can cooperate or not with other Advisers or Insurance brokers.
They can set up their reinsurance immediately during the installation of a product.
Advisers can cooperate with all insurers or Insurance brokers of their choice.
They can offer their products directly to customers or through the mediation of Advisers.
Authorised agents and insurers can participate in Insurance brokers' products."

And this can then all be processed in individual financial records for each country in which they operate.

Have I rendered that correctly?

Yes, you have represented that correctly.
And each country, of course, has a national language or several regional languages,
Each country has one or more taxes on insurance premiums. In Belgium, there are as many as five.
Legislation and customs can vary from country to country.
So can the currency in which premiums are booked and fees are settled.

It was quite a job to enable all this simultaneously.
By applying variable frameworks, the insurance industry will gain tremendously in transparency.
It is more efficient and it is evident that accounting costs will fall dramatically.

RealXS states that a licence to use this software is minimal.
What should I think of then?

We charge the user 5,000.= for every million premium turnover or 0.5 per cent.
That does not include the cost of the hardware needed to store the data.
In the case of Microinsurance products, we do not charge any licence fees at all.

Who has to pay these licence fees?

We charge our licence fees to the party that has registered as the owner of the product.
Usually this is the same party whose logo appears on the policy.
So this can also be an adviser who works with a regular group of insurers.

Are such digital properties tradable?

Yes, it is quite conceivable that someone has registered a unique insurance product on our software and then licenses one or more other parties so that they can offer that product independently and under their own name.
The owner then remains involved in the product and can also maintain it on behalf of the licensee if required.
This allows him to offer and monetise his specific knowledge to multiple parties.

0.5 per cent ! So that can be quite expensive?
You state that the system can be applied by all conceivable parties working in the insurance market.
So you are getting sleepy rich!

Well that is certainly not the intention.
Of course we have to incur costs for promoting our software.
After deducting the operating costs, the entire operating profit is transferred to Save The Children.
Whatever happens : children hold the future in their hands.

Are you transparent about the annual reports and operating profit?

Yes, our auditors are used to transparency from us and they will declare annually what amount has been transferred to charity on behalf of our clients

So RealXS has no profit motive?

True, we basically provide our services for free and for nothing.

Other location with computer screens at hand:

There are numerous computer programmes in the Netherlands that allow you to administer insurance.
Why have the developers of RealXS Insurance Software Systems created yet another software package?

RealXS Software or Real Access!
The name actually also says what the objective of this software is: truly accessible.
And that is what this software is in all respects.

1) With RealXS software, you can install and market new insurance products yourself via the intermediary or directly.
And for that, you don't need help from an IT company.
So you have Seriously Real access to the system.

2) With RealXS software, you can also install insurance products that until now have been carried on the basis of computer systems
that are outdated and cost a lot of money to maintain.

3) With RealXS software, you as management have permanent access to all data, so you can be up to date daily with the
results of turnover data, indexations and investments, claims history, loss reserves for old years, expenses, debtors and creditors.
What you want to see as a manager, that is ready for consultation at the minute exactly.

So you can set that up once and then the desired report is delivered to the nearest penny.

Do you need help from an IT company to do this?

No, every manager can learn how to communicate his or her requirements by himself.
After that, he is as free as a bird and reports already devised can be repeated endlessly.
The manager can decide at what time of the day he wants to be able to access a specific report.

RealXS Insurance Software Systems thus offers a solution for handling insurance administration.
Can this software be linked to a financial system that features a General Ledger with sub-administrations?

RealXS has chosen to integrate the administrative software with a financial package also developed by RealXS:
RealXS Financial Systems.
So in principle, there is no need to link to a third-party accounting system.
If one decides to have the accounting done by another party, the financial integration with RealXS Financial Systems remains fully
intact. However, RealXS Financial Systems cannot be decoupled from RealXS Insurance Software systems.

Show screen

Why was this chosen?

The developers have found over time that financial operations sometimes take place that have major negative consequences for
managers appointed at a later date.
If there is succession, the transfer of responsibilities must be flawless, and that is only possible if the computer system can provide them with reports based on data obtained 100% transparently.
So the answer to your question is : Yes, it is possible to supply accounting data for a financial records supplied by third parties.
Does that make sense : No and it costs needless extra money and will not provide any benefit.

Does RealXS offer courses for employees who want to learn to install an insurance product?

We have written our software so that anyone with an understanding of insurance is able to install an insurance product.
To help people get started, we do have a manual ready within the system.
First of all, you should fill in a questionnaire manually.
In doing so, you actually list all possible facets that may be important during the installation of an insurance product.
And so you can also discover whether you need to further prepare the system for your wishes or requirements.

Can you also learn new wishes or requirements for the system?

Yes, you certainly can.
Although RealXS Insurance Software is not "self-learning", the functioning of a product can be maximally influenced by the expert who wants to install an insurance product. In a practical sense, his innovative ability is followed.

Where can I find such a questionnaire?

It is simply on our website.
But you will also find it in the user menu:

Suppose someone has come up with a target group, for whom an insurance product in adapted form would be of interest.
Installing sucha product: how does that work in practice?

Then someone who knows about insurance must first make a detailed product description.
This description is necessary because the product can never reach the market if no insurer is willing to provide the risk coverage.

Sometimes it takes two or even 30 insurers to provide the required coverage. It depends on the size of the sums insured and the expertise required to accept and settle claims.
Let's come up with an insurance product together for sports associations, shall we?
What do you think of when you think of insurance that might be of interest to a sports club?

First of all, I think of movable and immovable property. There is usually also a catering business in the building.

It is usual for movable property to be covered on the basis of New Value.
Typically, replacement items are not readily available on the^2nd hand market.

It is common for immovable property to be covered on the basis of Rebuilding Cost.
And usually an indexation is then applied for the insured extent of movable and immovable property.

Perhaps the product should include glass insurance, which is underwritten by one or more glass insurers.

Ok, further, I foresee that the revenues of the hospitality business would collapse if there is substantial damage.

Then the insurance should also cover the risk of income due to loss of revenue.
So a component that covers business losses must then also be in the package!
So, annually, the system will then have to alert that the insured scope needs to be adjusted to the latest turnover data.
The premium for this component will thus have to be recalculated on an after-the-fact basis.
The club will then have to pay a supplementary premium or receive premium refunds.

What about if the composition of the insurance cover changes?

In that case, the difference in premium is settled with the insurer that covered the risk last year.

Is it useful to index the sum insured of business interruption insurance?

No, there is no point, as the final premium is settled by post-calculation.
And in case there is a claim, insurers offer up to 30% extra cover.
What else should the product cover?

I would think of things like:
* Civil liability of the association
* Directors' liability
* A collective accident insurance for members: during transport to and from other sports facilities.
* A disability insurance for people employed by the association. An annual income check is then indispensable.
* An insurance specifically for a club's TOP players. If they suffer permanent disability due to illness or an accident, the club suffers a considerable loss if the player can no longer be sold.
* A revenue insurance policy in case the stadium can no longer be rented out due to a covered event.

Indeed, these are all coverages that can be part of such an insurance product. And with each part, one has to ask:
1) What premium rates do we apply
2) What are the underwriting guidelines
3) Are standard conditions applicable or is it desirable for the product to mention specific inclusions or exclusions by default.
4) Is it conceivable to apply additional provisions for specific applications?
5) For which parts Is there an excess?
6) Are surcharges on the premium sometimes payable?
7) What about taxes due?
8) Which insurers will provide the risk cover for each component?
8) What brokerage commission, proxy commission or agency commission do those insurers remit
10) Will you work with intermediaries or not?
11) For each part of the cover, a model should be used to find the option to have all or part of the product accepted by means of a robo-acceptance module.
Etc. etc.

What is the advantage of such an insurance package for the consumer?

Because the size of the insurance package is large, the insurer can participate in several coverages according to his capacity.
Risk coverages he is not interested in are placed with other insurers
Specialised insurers can participate and play a leading role in case of claims.
Where desired, the insurer can purchase additional security through reinsurance.
Reinsurance can be applied both structurally (Quota Share) and individually (Special Limit).
And this can be changed per financial year, as there is settlement of premiums and benefits based on drawing years.
These reinsurances can be registered per product, so that even the reinsurer can adequately inform itself about the current state of affairs.

Has RealXS also found a solution for insurance products within the framework of Pensions or Mixed Insurance where age of the insured and return on investments play an important role.

Insurers who want to be able to transparently track investment results for individual customers can set this up very easily by charging separately.
They can then allocate the investment results to a balance of saved premium funds on an indexed basis. Because at RealXS, premiums are identifiable that have been received in a specific year, In principle, it is possible to apply indexation per signing year.

Yes, Yes, I am beginning to understand.
So first fill in the CHECKLIST.
Then what is the next step?

Then open this programme : The Manual, in which you will complete the Checklist step by step.

Show manual screen

Open the relevant table and check whether an applicable rule can be found.

Composing tables should be done with great care. All common names or choices should be open to question before they are added to a table.
It is important that all tables include factors that are broadly applicable.
Sometimes an insurance product may hook on to an existing a branch such as "motor insurance", but if it is a special policy for electric bicycles, then it may be necessary to apply the branch "vehicle insurance". Then mopeds and electric bikes and, if desired, motorbikes can also find a place within that branch. And if the risk coverage offered does not differ in a practical sense, then a broad base is convenient.

RealXS Insurance Software offers plenty of other options to record whether it is a car, a bicycle, a moped or a motorbike.

If you have found a required item, or have added it within a range, make a note of the number so that you can quickly apply the desired rule while putting the product together. See : "Install" in the menu.

How many tables does the system have?

There are hundreds, but many tables cannot be changed by yourself.
Such as the table for language selection for documents received by the customer.
The table for the language choice of the person consulting the system.
So English speakers can be informed just as well as employees who prefer to work in Dutch.
The table for defining the country in which the product may be offered.
The table for capturing the currency relevant to this product.
The table for recording taxes that may be relevant to products.
Tables for compiling the Real Time Management information system.
A table for choosing the billing & collection term (per day, per 1,2,3,4,6 or 12 months).
Etc. etc.

Premium per day?

Yes, it is conceivable that a wholesaler may prefer to want to suddenly change the size of the sum insured when it has been largely or fully sold.
You see this in futures trading, among others. For instance, you still own 3 million tonnes of oil and suddenly it belongs to someone else.
Then you have to be able to reduce or increase the insurance immediately.
The premium can then go down or up immediately.
And then the insurer also knows immediately how much risk it covers.
And that in turn can be important for his reinsurance because of cumulation.

Ok, when you have finished checking the Checklist?

Then you can get to work installing a product.
Sometimes the system already contains a similar product that you know well.

Then it is convenient to take all the coordinates of that product as a starting point.
In that case, the system makes a copy of that product and you give the copy a temporary working name.
That existing product is, in a practical sense, the template of the new product.
Only when the modified product fully meets your requirements will it be given its final name.

So if you cannot work from an existing product, you have to check every relevant section of the copied product and match it with the new design.

When I consult an insurer's website, I can read all kinds of things or a contents policy, a buildings policy or a car policy.
But you always talk about an insurance product.
How about that?

A car policy requires different skills administratively than a buildings insurance policy or a death insurance policy.
Especially if there is an insurance package where several risk coverages are bundled together, there can be logistics that are very complex.
Take an ongoing insurance policy with cover for:
* a car WA
* Caravan or trailer insurance for a boat
* Hull insurance for the boat
* accident insurance for the whole family
* Medical assistance abroad
* Cancellation insurance for travel expenses paid in advance
* repatriation cover in case of illness or accident
etc. etc.
Just go and adequately put together such an insurance product on an individual basis!
That could become a legal jungle.
But if you can offer all this in a standardised form, then as an insurer you know that the customer is not being sold buttons for lemons.
The fact that you have defined all the coordinates around underwriting and coverage in advance gives insurers the certainty that the customer will be able to take out an adequate product in all cases. This also prevents unnecessary conflicts or damage to your good name as an insurer.

In other words: a product is actually the digital basis for composing and sending a policy!

That's how it is!

And with RealXS, anyone who understands insurance can therefore independently install an insurance product!

You got it

The creator of this software was active for almost 40 years as an Insurance Broker at the Insurance Exchange and as an agent of Lloyd's Underwriters.
Was he still able to use the experience he gained for this project?

His experiences gained while working at the Insurance Exchange structurally form the basis for this special software.
As an insurance broker, you need to be able to conclude policies that have been placed with several Dutch insurers or proxies of domestic and foreign insurers.

RealXS Software transparently offers all parties involved a fully operational database, which can find out which insurer is entitled to premiums that are still booked (post-settlement). But even when it comes to claim recovery, the right insurers will always be able to be addressed, as they will be notified quarterly of the list of claims not yet settled.

Bringing home premiums still booked is a problem that cannot occur at RealXS.
Fulfilling obligations with regard to claims that turn out to be due years later is a huge challenge for the market.
Applying RealXS software has reduced the chance of unpleasant surprises to zero.

An insurance product that you have successfully marketed in the Netherlands can be offered one-to-one in any other country with RealXS software!
So first of all, you can copy all research, clauses and underwriting guidelines one-to-one for application in another country.
Then, of course, you have to check whether there is reason to adapt the product to specific requirements and underwriting guidelines.

But the big advantage is then that, statistically speaking, you use one and the same database for informing management.
And you can do that with identically designed information systematics, so the results are easily comparable.

Part of installing an insurance product involves compiling underwriting guidelines that can be deployed in an automated way.
Robotic underwriting can take a lot of work off insurers' hands.
Especially if the compilation of policy documents is linked to it.

If it turns out that in certain respects the results of the product in France, Korea or Kenya are different from those in the Netherlands, this could prompt an investigation into underwriting guidelines. Possibly these cause different results.

So management can actively respond to the information they get from the RealXS management information system they have put together themselves.

Has this software already been experimentally tested in practice?
Is it proving to be applicable successfully?

Yes, we were able to interest two insurance product providers in a test setup.
Both are so satisfied that they have switched completely to RealXS.
For efficiency reasons, both use the same computing centre.
Both providers made unsuccessful attempts to have their insurance products processed by other software vendors.
As these failed to do so, they were very impressed with RealXS software, as no adaptation of our software was necessary for adequate installation of their highly complex insurance products.
The advantage is that intermediaries can connect without having to set up a third-party database.
Thus, they too always obtain the current state of affairs in view.
The power of the Compute Centre naturally increases as more insurers join it.
Everyone has their own access, but together available for consultation by customers or intermediaries.

Does the system offer anything in terms of quality control?

Yes, every product can be provided with a so-called Quality Scan. With this, an insurer can make clear, especially to the professional intermediary, which quality standards the product meets. For the first time the intermediary has an independent assessment. Thus, for the first time he can base his advice on verified facts.

Which parties are involved in drawing up such a test?

In principle we leave this to the market.
Experts should be able to decide for themselves which issues are relevant enough for the test.
The test will then be made available to product providers and, if required, can be supplemented at their request.

Well, it is now clear to me what RealXS has in mind with its new system.
I wish you and especially your clients the best of luck with this project.