As reported the other day (CI No 1,366), IBM UK’s representatives at the launch of an information network for the insurance industry jumped the gun by a few hours by announcing that the network would run on the new RISC System/6000, a machine that was not scheduled to be unveiled officially until later on that day. The main thrust of the launch was, however, the network itself, which is based on the IBM Information Network and INS’ Tradanet network currently in use; the system runs on IBM hardware and insurance software packages from industry specialist Policy Master Plc, and is claimed to be the future backbone that the UK insurance sector needs to protect itself from operators on the continent, notably the increasingly acquisitive French. The network will be used for what Policy Master is calling Validated Business Systems, or VBS. VBS is effectively an Electronic Data Interchange service – using the industry standard Brokernet – that validates all transactions at the point of sale, thus conforming to the underwriter’s professional code. Transactions pass across the network between the insurer’s mainframe and that of the broker, with PS/2s on the front desks – brokers with more than 60 screens will have the System/6000 – with proposal forms and policy schedules automatically printed out at the broker end. The service will also include electronic mail, direct mainframe-to-mainframe interaction where authorised, and an interface for telex. The cost of connection, which buys a modem, IBM 3270 emulation hardware and software, Policy Master software and all the associated hardware, will start at UKP9,000 for one screen system; six screens will cost around UKP17,000. The service is initially aimed at the motor insurance sector of the industry, and as one insurance trade analyst put it, there may be some difficulty in finding brokers willing to fork out the money required for connection – perhaps anticipating this, Policy Master is offering grants to brokers to lessen the blow to their finances. But with the Big Eight insurance companies supporting the network, for the brokers it may be a case of connect or go under.
