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Documentation & Contract Checking Market Reform Forum 25 April 2007.

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Presentation on theme: "Documentation & Contract Checking Market Reform Forum 25 April 2007."— Presentation transcript:

1 Documentation & Contract Checking Market Reform Forum 25 April 2007

2 Panel members: LMA – Martin Roberts Lloyds –Kieran Flynn LMBC – Mike Reidie, Nigel Roberts

3 Documentation & Contract Checking Increasing certainty, quality and speed Market Reform Slip Contract Certainty Contract Checking

4 Changes to Documentation & Checking Have been developing for some months: Background – Richard Wards letter 22 May 2006 and subsequent publications Main Features: - All risk checking pre-bind: no stage 2 checking (limited volumes/ too late in process ) - A Copy slip may be used as the sole contract document Key dates: - February 2007 no automatic addition to UPR - End June 2007 stage 2 checking ceases/Slip policy schemes withdrawn

5 Changes to Documentation & Checking Documentation options/new XIS service No further documentation required: - Include Attestation Clause LMA3036A or Lloyds Policy required - Include Attestation Clause e.g LMA3037A - XIS Policy Signing Service – limited policy review, not full check (proof read process)

6 Contract Checking All contract checking will need to be Pre-Bind (Pre-Bind Quality Assurance- PBQA): Underwriter/Broker responsibilities for quality Scope of checks for PBQA: - CC, Tax & Regulatory and Lloyds Advisory/Risk Management

7 Documentation Ensuring clarity and certainty for all parties Underwriter Documentation: – Lloyds policy – Complete copy of slip – Certificates Broker Documentation: - BID

8 Pre-Bind Quality Assurance (PBQA) Focus now on: Reducing Legacy UPR listing and Ensuring Pre-Bind Quality Assurance Engagement with the market has included: Fact find on current PBQA procedures within Lloyd s Working Group shaped market approach to PBQA & endorsement by UCC of proposals to market Liaison with LMA, LMBC & IUA to encourage consistency on Documentation and Contract Checking issues

9 Pre-Bind Quality Assurance (PBQA) PBQA addresses CC, Tax & Regulatory and Lloyd s Advisory/ Risk Management checks Responsibility of MAs from 1 July 2007: Recognition of declining volume of Lloyd s Policy requests and Cessation of Stage 2 checks by XIS Lloyd s Market Bulletin will underline risk-based approach expected: Each MA has own PBQA procedures, reflecting individual risk

10 Pre-Bind Quality Assurance (PBQA) Lloyd s seeking practical approaches to assist the market: Clear risk-based approach set out for all, within U/W Standards Broking community engaged (assisted by Nigel Roberts & LMBC) Access to model wordings (in cooperation with LMA) Evaluation of automated checking with Adsensa (to support experienced underwriting & wordings personnel) Creation of coordinated information resource within Crystal – Tax & Regulatory information, complementing QA Tool Enhancing QA Tool checks/ process (will take time)

11 Working together – Whats in it for brokers? Enhanced service for brokers clients once implemented Certainty in document content/format Faster final contract to client Reduction in post placement administration Easier to achieve 30 day target for contract issuance

12 Any Questions?

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