Presentation on theme: "Market Reform Group With Electronic Market Reform Contract Endorsements Sponsors and Project Managers - Workshop 28 th January 2009."— Presentation transcript:
Market Reform Group With Electronic Market Reform Contract Endorsements Sponsors and Project Managers - Workshop 28 th January 2009
Market Reform Page 1 Agenda Introduction & Background Bi-Lateral agreements Current Status & Targets Broker & Insurer Responses Workshop Conclusion John Muir Steve Hulm ALL
Market Reform Page 2 Reforming endorsements: a big prize For non-complex, non-urgent, low value to client but high admin cost –Approx ½ million endorsements p.a. Faster agreement process Frees brokers and underwriters to do something more useful Agreed endorsement is basis of client documentation –Improved contract certainty –Saves broker rework –Documentation to client quicker Bridgehead into electronic trading
Market Reform Page 3 e-MRCE summary: focus is Keep it simple – is sufficient – new technology is not a pre-requisite –Use structured data messaging when you have it –Certainly non-complex, but dont be afraid to go further Just do it – widely used for non-London Market business already –Brokers: extend use of to your London Market business particularly for non-complex, non-urgent, endorsements –Insurers: respond using
Market Reform Page 4 Bi-Lateral Agreements Whereby a broking team and underwriting team agree to the submission of ALL endorsements, within a class of business Negotiation and agreement can then be via , or face to face, as appropriate We are developing a protocol regarding how this would work We will then be seeking volunteers to participate
Market Reform Page 5 Current Status and Targets Data received from approx. 20 insurers and 20 brokers (including Aon, Marsh and Willis) each month Volume has increased significantly … … but below target. Limiting factor = acceptance by front-line brokers and underwriters? Electronic endorsements - broker submissions AprMayJunJulAugSepOctNovDec Broker electronic submissionsMonthly Interpolated targetQ3 target
Market Reform Page 6 Selection of Broker Responses e-MRCE provides us with clear benefit … … particularly where it means that technicians can communicate directly with the market (including from outside London) Weve had endorsements agreed in under 5 minutes It brings the process for London & Overseas markets into line Follow agreements and notifications can be executed in parallel Front-line brokers may not be keen Individual underwriters may not be keen Measurement a chore Some prefer to await a structured messaging solution
Market Reform Page 7 Selection of Insurer Responses Our doors are open to brokers that want to operate in this way Brings London process into line with that adopted elsewhere in the group Maintains a record of the agreement Endorsements via can be integrated into our workflow systems – and hence visible on underwriters desktops Provides a stepping stone (& benefits case) towards full electronic support for placing (& hence reduced re-keying) Volumes are currently low; measurement a chore Supports endorsement agreement by underwriting assistants Non-standard submissions hinder take-up
Market Reform Page 8 Workshop Questions – by show of hands 1. Is e-MRCE providing benefit today? 2. Does act as a stepping stone to support for placing via structured messaging? –Addressing the cultural issues? –Providing experience and the basis for a benefits case? 3. Do you think that your organisation would participate in Bi-Lateral agreements? –For 100% of endorsements, within specific classes/teams 4. Question(s) from the floor?
Market Reform Page 9 Workshop Questions – breakout groups For INSURER representatives: How to promote front-line underwriter acceptance? For BROKER representatives: How to ensure (broker) adherence to agreed e-MRCE standard?
Market Reform Page 10 Conclusion Thank you for coming … and for participating Watch out the announcement of bi-lateral arrangements I will be meeting with as many of you as possible over the next few months to gain your input … in the meantime We are very open to individual suggestions and comments regarding the issues raised today