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1 Market Reform Forum Update on business reform 21 April 2005 Andy Brookes LMP/Lloyds BPR.

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Presentation on theme: "1 Market Reform Forum Update on business reform 21 April 2005 Andy Brookes LMP/Lloyds BPR."— Presentation transcript:

1 1 Market Reform Forum Update on business reform 21 April 2005 Andy Brookes LMP/Lloyds BPR

2 2 Objective: up to speed in (less than) half an hour…… Aims, end vision, overall approach – take it as read Contract Certainty – todays special topic LMP slips Implementations Kinnect Back office electronic infrastructure Accounting and Settlement Electronic Claims Files What you should be doing Comms – newsletter, website

3 3 The aims of market reform Contract Certainty Clarity of contract, leading to certainty of coverage, fewer disputes, less time wasted, a reduction in legal bills and improvements in downstream processing. Service to the client Process Efficiency Efficient capturing, storing and reuse of data, reduced error rates, and quicker premium payment processes. Lower costs. To adopt processes that speed up the agreement of the contracts, the issuance of documentation and the subsequent agreement of claims. Londons competitive position Includes defending market share in traditional markets and promoting growth in new markets Global standards To facilitate adherence to (or creation of) accepted internationally standards for accounting, message/business flows, and technology.

4 4 Principles underpinning reform Reduce Londonisms: international firms must buy-in – governance role Change requires authority and a degree of neutrality: individual firms cannot do it alone; Lloyds and the Associations will lead Commitment to co-operate essential, on design and implementation Network effects: a convoy for implementation Cost / benefit case is rarely convincing on its own. FSA Transparency

5 5 Vision for market processes Exchange of data and progress of transaction is captured in collaborative electronic systems Placing process built into electronic system Placing data to international standards Standard slip generated by electronic system. Ditto, the policy. slip/policy distinction blurs Policy based on model wordings; changes tracked and audited electronically. Or auditable bespoke wording created. Checking in real time Placing systems retain the data and audit trail Claims: international standard messages for data and claims management. Repositories for simultaneous access Accounting and settlement: ditto

6 6 Approach To support each stage in the life cycle of a contract: simplified, harmonised business process standardised data structured electronic messages community infrastructure platforms - minimise interfacing costs and enforce discipline Why? Drive changes – including behaviour - within firms. Hence -reduce risk -reduce cost -make process transparent to market users so that they can measure and manage

7 7 Accounting & Settlement Xchanging costs (£10.4mn) being reviewed -Interim report with Project Board Technical and data information: Phase 1, publish 22 April -Who is digesting it in your firm/supplier? Views please - Phase 2 likely to be May – claims, ORI Accounting splits: Code of practice being finalised; now costs Migration (legacy and crossover): Complete for premium, claims (Section 2 of technical information) Testing – first convoy on behalf of market; subsequent convoys -Working through options MRIB and Project Board working on implementation timetable -Had aimed to publish in Q1, will be Q2 - greater certainty required on costs -Sequence and timetable for deliveries -Convoy one membership

8 8 Electronic Claims File XIS development work Phase 1 - Operational in February Phase 2 - Delivered and tested, now live Overall business process requirements - Agreed Overall business process spec being signed-off DRI design near completion Implementation 4 partnerships operational – low volumes (fine) 40 (up from 25 last month) potential partnerships identified Governance – Project Board and MRIB -Named brokers commit to deliver 100% new claims from Q3 2006 -Named Managing Agents commit to use ECF for new claims from Q3 2006 Live issues Monitoring implementation partnerships Documentation needs stepping up

9 9 Communication Newsletter Useful? Boring? Websites LMP – used? Quality?

10 10 Market Reform Forum Update on business reform 21 April 2005 Andy Brookes LMP/Lloyds BPR

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