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Market ReformProgramme Office
Market Reform: 2006 progress
21 December 2006
Andy Brookes
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Contract Certainty
MRG Objectives 2006 +
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
MRG Objectives 2006 +
Overall CC score 92% in
September
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1);
MRG Objectives 2006 +
98% achievedOverall CC score 92% in
September
![Page 5: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/5.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
MRG Objectives 2006 +
98% achievedOverall CC score 92% in
September
Superseded by CC
measurement
![Page 6: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/6.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)
MRG Objectives 2006 +
98% achieved
Overall CC score 92% in September
Superseded by CC
measurement
![Page 7: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/7.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)
• Clear plan for continued improvement of CC in 2007+ (Q3)
MRG Objectives 2006 +
98% achieved
Overall CC score 92% in September
Shared with the FSA
Superseded by CC
measurement
![Page 8: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/8.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)
• Clear plan for continued improvement of CC in 2007+ (Q3)
• Avoid regulatory intervention
MRG Objectives 2006 +
98% achieved
So far…
Overall CC score 92% in September
Shared with the FSA
Superseded by CC
measurement
![Page 9: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/9.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)
• Clear plan for continued improvement of CC in 2007+ (Q3)
• Avoid regulatory intervention
• Build user-friendly front-end for contract certainty checks (Q1)
MRG Objectives 2006 +
98% achieved
So far…
Overall CC score 92% in September
Shared with the FSA
QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities
Superseded by CC
measurement
![Page 10: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/10.jpg)
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Contract Certainty
• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)
• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)
• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)
• Clear plan for continued improvement of CC in 2007+ (Q3)
• Avoid regulatory intervention
• Build user-friendly front-end for contract certainty checks (Q1)
• Market feasibility for next stage of development of QA tools (Q4)
MRG Objectives 2006 +
98% achieved
So far…
Overall CC score 92% in September
Shared with the FSA
QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities
Further enhancements scheduled for Lloyd’s market next year
Superseded by CC
measurement
![Page 11: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/11.jpg)
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tContract Certainty
What else is happening and what should be live issues for your firm?
• Industry Assessment of Success
–8th and 25th January with FSA
• MR Slip Guidance
–Orders Hereon, Document Production, Fiscal & Regulatory, NCAD.…
• Stamp Conditions
– guidance forthcoming
• Legacy
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tMRG Objectives 2006 +
Accounting & Settlement
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1);
Some statistics available from end October
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
Achieved, but lateSome statistics available
from end October
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
• For ACORD international standard A&S processes:
Achieved, but lateSome statistics available
from end October
![Page 16: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/16.jpg)
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
• For ACORD international standard A&S processes:
– Agree and document outline processes (Q1)
Achieved, but lateSome statistics available
from end October
![Page 17: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/17.jpg)
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
• For ACORD international standard A&S processes:
– Agree and document outline processes (Q1)
– Publish detailed technical and business information (Q2)
Consolidated and
completed in October
Achieved, but lateSome statistics available
from end October
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
• For ACORD international standard A&S processes:
– Agree and document outline processes (Q1)
– Publish detailed technical and business information (Q2)
– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)
Consolidated and
completed in October
Achieved, but lateSome statistics available
from end October
MRG reprioritisation.
Insufficient demand from market
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tMRG Objectives 2006 +
Accounting & Settlement
• Establish measurement regime (Q1); publish accounting checks (Q1)
• For ACORD international standard A&S processes:
– Agree and document outline processes (Q1)
– Publish detailed technical and business information (Q2)
– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)
• Implement A&S repository (Q4)
Consolidated and
completed in October
Achieved, but lateSome statistics available
from end October
Email and Direct Load live Sept
MRG reprioritisation.
Insufficient demand from market
DRI live December
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tAccounting & Settlement
What else is happening and what should be live issues for your firm?
• Repository
–Take up
– Pricing
– Further phases in 2007
• Measurement and ‘right first time’
• Strategy
–Speak to Rob Campbell (MRPO)
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tClaimsInfrastructure
MRG Objectives 2006 +
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1);
MRG Objectives 2006 +
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
MRG Objectives 2006 +
Rescheduled for Q1, 2007
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
MRG Objectives 2006 +
Rescheduled for Q1, 2007
![Page 25: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/25.jpg)
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
• Plan for common claims procedure in London (Q1)
MRG Objectives 2006 +
Reviewed in A&S strategy work, no plans to progress
Rescheduled for Q1, 2007
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
• Plan for common claims procedure in London (Q1)
• Complete IUA repository pilot and agree next steps (Q2)
MRG Objectives 2006 +
Reviewed in A&S strategy work, no plans to progress
Started June, extended into 2007
Rescheduled for Q1, 2007
![Page 27: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/27.jpg)
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
• Plan for common claims procedure in London (Q1)
• Complete IUA repository pilot and agree next steps (Q2)
• Deliver Lloyd's electronic infrastructure into market testing (Q2)
MRG Objectives 2006 +
Reviewed in A&S strategy work, no plans to progress
Started June, extended into 2007
Live Now
Rescheduled for Q1, 2007
![Page 28: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/28.jpg)
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
• Plan for common claims procedure in London (Q1)
• Complete IUA repository pilot and agree next steps (Q2)
• Deliver Lloyd's electronic infrastructure into market testing (Q2)
• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)
MRG Objectives 2006 +
Reviewed in A&S strategy work, no plans to progress
Started June, extended into 2007
Live Now
Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use
Rescheduled for Q1, 2007
![Page 29: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/29.jpg)
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tClaimsInfrastructure
• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)
• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)
• Plan for common claims procedure in London (Q1)
• Complete IUA repository pilot and agree next steps (Q2)
• Deliver Lloyd's electronic infrastructure into market testing (Q2)
• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)
• Set strategy for claims infrastructure beyond ECF (Q4)
MRG Objectives 2006 +
Reviewed in A&S strategy work, no plans to progress
Started June, extended into 2007
Live Now
Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use
Reviewed in A&S strategy work, ECF upgrades in MRG plans for 2007
Rescheduled for Q1, 2007
![Page 30: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/30.jpg)
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tClaims Infrastructure
What else is happening and what should be live issues for your firm?
• Repository
–Take up
–Pricing
–Further phases in 2007
![Page 31: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/31.jpg)
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Other
MRG Objectives 2006 +
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Other • Publish legacy Code of Practice (Q1);
MRG Objectives 2006 +
![Page 33: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/33.jpg)
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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)
MRG Objectives 2006 +
Need to demonstrate significant legacy reduction in 2007
![Page 34: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/34.jpg)
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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
MRG Objectives 2006 +
Need to demonstrate significant legacy reduction in 2007
![Page 35: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/35.jpg)
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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
• Training: ‘approved’ courses for contract certainty (Q1);
MRG Objectives 2006 +
Need to demonstrate significant legacy reduction in 2007
![Page 36: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/36.jpg)
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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2);
MRG Objectives 2006 +
Need to demonstrate significant legacy reduction in 2007
![Page 37: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/37.jpg)
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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)
MRG Objectives 2006 +
None set, training as required by firms
Need to demonstrate significant legacy reduction in 2007
![Page 38: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/38.jpg)
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Other
In Addition
• Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)
MRG Objectives 2006 +
None set, training as required by firms
Need to demonstrate significant legacy reduction in 2007
![Page 39: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/39.jpg)
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Other
In Addition
• Publish legacy Code of Practice (Q1); measured progress against code (Q4)
• Measure use of new infrastructure and business benefits (on-going)
• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)
• Schematron
MRG Objectives 2006 +
None set, training as required by firms
Tool to ensure right ACORD are messages sent
Need to demonstrate significant legacy reduction in 2007
![Page 40: Market Reform: 2006 progress 21 December 2006 Andy Brookes](https://reader034.vdocuments.site/reader034/viewer/2022042607/551603a7550346a2308b4d13/html5/thumbnails/40.jpg)
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tCommunications
Questions