NU Online News Service, Dec. 1, 3:18 p.m. EST

The Insurance Exchange Trust is moving ahead with development of an insurance exchange, establishing an oversight committee it said will make the insurance transaction easier for everyone involved.

Last week, The Trust announced the establishment of its board of insurance professionals dedicated to overseeing the LexisNexis Insurance Exchange.

The Trust said its mission will be to "provide both guidance and insight" to LexisNexis Risk Solutions, which is the developer of the exchange, to ensure the exchange "fully supports the needs of the insurance distribution market, carriers and their customers."

The Council of Insurance Agents & Brokers and LexisNexis, which have taken the lead in developing the technology, described the insurance exchange as an electronic platform where agents and brokers can submit a risk to multiple insurers and wholesalers in real time for placement.

The exchange will also offer "information and analytics with respect to risk placement and market trends" that will not be available elsewhere.

CIAB said the exchange "is designed to promote and facilitate competition in insurance markets and to provide a level of efficiency and increase productivity."

Ken A. Crerar, president of CIAB and executive chairman of the Insurance Exchange Trust Board of Trustees, said, "Visualize the trust as a ring around the LexisNexis Insurance Exchange, which functions to facilitate transparency, neutrality, fair pricing and data protection for all Insurance Exchange participants."

According to The Trust, when the exchange is up and running, it will be available to all agents and brokers. It will initially cover property and casualty risks but is envisioned to provide transactions for all risks including health and life in the future.

The founding trustees of the board are:

o J. Hyatt Brown of Brown & Brown

o Andrew G. Cassidy, Early, Cassidy & Schilling Inc.

o Albert R. Counselman of RCM&D, Inc.

o Mr. Crerar of the CIAB

o M. Steven DeCarlo of AmWINS Group Inc.

o Sharon Emek of CBS Coverage Group Inc., representing the Independent Insurance Agents & Brokers of America

o Clyde H. Fitch Jr. of State Auto

o Lawrence G. Graev of The GlenRock Group, LLC, representing MarketCore

o James Hackbarth of Assurex Global

o Russell Johnston of CHARTIS

o Greg Maciag from ACORD

o Markham R. McKnight from BancorpSouth Insurance Services Inc.

o Mark J. Moitoso of Liberty Mutual Group

o H. Wade Reece of BB&T Insurance Services Inc.

o George A. Steadman III of Rutherfoord/MMA

o Robert H. Rheel from Zurich

A controlled release of the exchange is currently in operation with 16 leading U.S. brokerage firms to test the system, The Trust said. It added that all carriers can access the exchange, making it possible for agents and brokers to make submissions through it.

Full production through the exchange is expected to begin in the second quarter of next year.

There will be costs associated with the use of the exchange for carriers, agents and brokers that will consist of an initial and yearly membership and support fees on a per-user basis. The price of those fees has not been publicly outlined.

This story was updated at 4:30 p.m.

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