With

Market Reform Office

Market Reform Forum

What’s new this month? e-Placing update

Andy Brookes, MRO

Lisa Gibbard, Head of IT, Aspen Re

Rob Gillies, Head of Market Reform Policy, LMA

28th February 2008

Market Reform Office

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Update across the reform agenda

• Placing

• Endorsements

• A&S and ECF

• Other stuff

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Placing• Contract certainty

– Achieved ≥ 90% thorough 2007

– No more stats to MRO

• Will the MRC change this year? Hardly at all

– See published paper for MRG policy

– No major changes (eg headings); minor usage updates; in synch with ACORD GPD; but remains London market controlled

• MRC for binders and lineslips

– To be published shortly

– Public sessions?

• Electronic bureau policies

– 22% in January, from 17% in December

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Endorsements: current status

• Documentation standard (MRCE)

– London standard for contract changes from 1 April

– So no more honeycombs

– To do: ensure it is adopted in your (broking) firm. Underwriters – make a fuss if you see old style

• Electronic processing (e-MRCE)

– Documentation agreed and ready to publish

– To do: digest and implement

– To do: who in your firm needs to attend public sessions in mid-March? Contact mro@marketreform.co.uk to register.

– To do: adopt simple measurement template

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e-MRCE: focus is e-mail

• Just do it

– Email widely used now for contract changes on international business

– Extend use of email to London Market business

• Keep it simple

– No new technology required

– So no need to wait for others to justify investment

– Easy bridgehead into electronic support for placing

• A supporting act to ACORD messaging

– Email use kicks off the sort of business changes required for electronic processing via ACORD messages (workflow)

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A&S aims

• “All accounting and settlement of risks performed electronically” to deliver:

– Rapid movement of premium and claims monies

– “Right first time” processing

– Increased efficiency with lower operational cost

– Lower operational risk

• In practice this means…

– Remove paper

– Remove the van

– Delinking

– Move to ACORD business messages and validation

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A&S current status• Insurers Market Repository (IMR) use

– 75% (w/e 15 February) of original premium

– 56% of all premium (including APs and RPs)

• No van service for in scope OPs from 1 April

– See published details on market reform website

• No van service for APs & RPs from 31 December

• ACORD messages – single standard incorporating bureau and non-bureau

– E-Accounting project being led by Richard Lester (Guy Carp)

– Move from scanned paper LPAN to structured data

• Delinking

– c70%; guidance forthcoming

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IMR Usage - Accounting & Settlement

0%

20%

40%

60%

80%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

All submissions OP only

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Claims• Lloyd’s 100% new in-scope end Q1

– 90%+ January

• IUA take up : end Q3 100% new in-scope

• Service contract in negotiation – slow going

• Service targets: LMRB own

– Measure first, then think about targets

• Legacy claims

– End Q1 review of pilots

– ECF Flag being built

• MI report(s) being commissioned from Xchanging

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IMR questions

• How is Xchanging’s performance in developing and running the IMR being managed?

• What work is being commissioned from XIS (scope, usability, hardware)? What’s the cost and who is paying?

• Plans beyond the IMR?

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IMR performance

• LMRB’s role: to oversee Xchanging

– Performance stats

– Xchanging give account at LMRB as necessary

– LMRB chair, then MRG chair, for escalation

• LMRB view: Xchanging recognise the seriousness of IMR performance issues and have/are responding accordingly

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IMR continuing investment

• Increase scope

– relative importance down

• Improve usability

– relative importance up but…

– ECF quote issues – CLASS is unwieldy and so changes are expensive

• Capacity

– upgrades need funding

– Market audit team in place

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Live issues on change requests

• Legacy flag essential

– Due for May delivery

• Workshops to scope future releases

– November; possibly August

– Reviewing feasibility of ACORD solution to multiple OSND

• User groups working well

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What’s the strategy?

• Keep going with ‘value for money’ improvements to IMR, while planning what next

• Don’t let dreams of infrastructural nirvana stop us doing the hard yards now

• LMRB focussed on IMR/ECF now, not long run plans

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Future of claims infrastructure

• Whose doing what?

– Lloyd’s Claims Strategy Review : IT infrastructure workstream

– IUA priority; LMBC Market Reform Strategy Group interested

– No overarching governance yet, but watch this space

• What are the issues?

– Replacing CLASS(s) : 4 versions

– ‘ACORD for all’ : XIS likely Q2

User choice of ACORD message rather than EDI

Recent XIS publicity

• Time and cost and of CLASS changes makes this more pressing

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Other stuff you should know

• IT Club with suppliers at 11:00 here

– Prepare your questions

• Interchange agreement - background publication for reference

– Rob Campbell MRO contact