the world, needs to exploit the possibilities of electronic data interchange.

That is the view of Mr. Jean Lacave, general manager of Brussels-based Reinsurance and Insurance Network (RINET), who spoke to the Bermuda Insurance Institute yesterday.

He said the reinsurance sector increasingly relies on technology for communication and Bermuda, in particular, could not exist as a centre without maximising its use.

Mr. Lacave was invited to speak about the purpose of Electronic Data Interchange (EDI) and report on the progress of the RINET project in this area by the BII's information technology committee.

In his speech, Mr. Lacave also compared RINET's position with other multiple networking initiatives that exist.

RINET was established in Brussels in 1987 as a non-for-profit international organisation. It is owned by the industry with the aim of developing standards and promoting electronic exchanges.

Communications between companies takes place in two ways: EDI and electronic mail, which is often person-to-person messaging.

"If the reinsurer doesn't take advantage of EDI, it will probably be crushed under the weight of administrative paper,'' said Mr. Lacave.

"I know how acute the problem is, in terms of communications, and how time may be growing short for the companies that have decided that they will ignore it. At some point in time, there will be no other way to run your business.

"The international reinsurance and insurance business needs to use EDI to keep costs in check, as well as to simply remain in the game,'' he said.

Mr. Lacave said the feedback from the over-subscribed seminar was a "classic reaction''. "It's like discovering another world,'' he said.

Mr. Lacave also detailed his organisation's achievements in setting reinsurance international standards and standard messages, particularly the results of a joint venture between RINET, the London Insurance Market Network (LIMNET), the American Brokers and Reinsurance Market Association (BRMA) and the Reinsurance Association of America (RAA).

Mr. Lacave discussed the joint venture, which is intended to develop a commonly agreed set of standard messages, and has just announced last month the formal release of a first batch of five common messages.

RINET has developed for its members, a number of specific reinsurance EDI messages.

EDI, which he defines as direct computer to computer electronic communications between companies, is "a novel concept''.

"It was until recently largely unknown and certainly misunderstood, particularly in the insurance and reinsurance world.'' EDI allows routine business documents, such as reinsurance treaty accounts, claims notifications and payment requests to be exchanged in a standard way between companies.