Best AP Solution Highly Commended: Chubb Insurance Australia Ltd

Published: Apr 2021


Photo of Gerard Sitaramayya, Chubb Insurance Australia Ltd.

Gerard Sitaramayya


Chubb is the world’s largest publicly traded property and casualty insurer with operations in 54 countries and territories, employing more than 30,000 people worldwide.

Insurance claims paid faster with API connectivity

The challenge

Chubb is focussed on streamlining treasury operations globally and implementing best practices through a treasury transformation programme (TTP) which includes key objectives for payments processing to:

  • Streamline payments processes to improve efficiency and control.
  • Centralise payments control and visibility to better manage cash flow.
  • Simplify processes to reduce operational risk.
  • Improve customer claims experience.

The solution

To achieve the above in both Australia and New Zealand, Chubb chose to partner with ANZ Bank which provides payments innovation with capabilities such as straight through processing (STP), API integration and faster payments.

Over a 15 month period, the company worked closely with the bank to implement a solution which included application programming interface (API) connectivity to the Australian New Payments Platform (NPP) payments. The NPP APIs enable Chubb to make near real-time payments for insurance claims, thereby significantly enhancing its customer experience. The faster claim payments are particularly helpful for customers in urgent and/or emergency situations.

Best practice and innovation

The API connectivity to the NPP enables near real- time integration for instant payments, offering the following features in Australia:

  • Payments clearing in typically less than a minute to facilitate prompt payment of insurance claims.
  • Simpler addressing via the NPP Pay ID service. This is a new and easy way to link a financial account with an easy-to-remember identifier such as a mobile phone number, email address or Australian business number (ABN). Payments can be made easily using the recipient’s Pay ID instead of the bank state branch (BSB) and account number. Chubb can store a client’s Pay ID information and are currently testing the Pay ID functionality which was deployed in September.
  • The NPP payments service is available 24/7, 365 days a year. Customers can therefore submit claims outside of business hours via the web portal or phone support from Chubb’s offshore teams working in different time zones.
  • NPP allows more enriched payment remittance information, with up to 280 characters supporting faster reconciliation.

API Connectivity – the NPP API connectivity provides a real-time payments system fully integrated with the company’s internal/customer facing web-based applications. Chubb has utilised the flexibility to build smart features into its applications and enhance its customers’ claims experience. Depending on the insurance type/amount, customers can utilise either the web based self-service portal or raise a request over the phone with a claim examiner who can approve and process the payment in real-time.

The NPP APIs provide the functionality to track payment status which allows Chubb to notify the claimant in near real-time when the payment has been completed.

SWIFT SCORE FileAct – provides a secure, reliable and efficient way to transfer payment and reporting files. The bank has developed customisation which enables Chubb to send a consolidated file for different payment types (domestic ACH, Cross Border Funds Transfer and cheque outsourcing) as well as associated remittance information across both Australia and New Zealand.

XML (ISO 20022) – payment files in the global standard format provides processing efficiencies including ease of delivery across different channels and enables enriched NPP payment information.

Outsourcing of cheques and paper/email remittance generation and delivery to ANZ – this provides Chubb with scalability, automation and reduction in cheques and remittance related risks.

The facility also includes SWIFT FIN connectivity for cross border (MT101) payments, electronic receivables, zero balance sweeps for automated cash pooling/liquidity management, foreign exchange and the bank’s online banking platform as a contingency.

Key benefits

  • Faster insurance claim pay-outs.
  • Improved customer experience, satisfaction and loyalty.
  • Increased STP.
  • Reduced costs.
  • Process efficiencies.

“This technology offers a ground-breaking solution for the Australian insurance industry where established players have been hesitant to adopt new technologies due to legacy systems,” says Gerard Sitaramayya, CFO.

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