Presentation on theme: "LMBC – Mike Reidie, Nigel Roberts"— Presentation transcript:
0 Documentation & Contract Checking Market Reform Forum 25 April 2007 RT- welcome on behalf of Lloyd’s & LMA
1 LMBC – Mike Reidie, Nigel Roberts Panel members:LMA – Martin RobertsLloyd’s –Kieran FlynnLMBC – Mike Reidie, Nigel RobertsRT- Helpful if you could make a note of questions for later- Pl then give your name/firm/question…thank you
2 Documentation & Contract Checking Increasing certainty, quality and speedMarket Reform SlipContract CertaintyContract CheckingMartin Roberts
3 Changes to Documentation & Checking Have been developing for some months:Background – Richard Ward’s letter 22 May 2006 andsubsequent publicationsMain 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 documentKey dates:February 2007 no automatic addition to UPREnd June 2007 stage 2 checking ceases/Slip policy schemes withdrawnMartin Roberts
4 Changes to Documentation & Checking Documentation options/new XIS serviceNo further documentation required:Include Attestation Clause LMA3036AorLloyd’s Policy requiredInclude Attestation Clause e.g LMA3037AXIS Policy Signing Service – limited policy review, not full check (proof read process)Martin Roberts
5 Contract CheckingAll contract checking will need to be ‘Pre-Bind’ (‘Pre-Bind Quality Assurance’- PBQA):Underwriter/Broker responsibilities for qualityScope of checks for PBQA:CC, Tax & Regulatory and Lloyd’s Advisory/Risk ManagementMartin Roberts
6 Documentation Ensuring clarity and certainty for all parties Underwriter Documentation:Lloyd’s policyComplete copy of slipCertificatesBroker Documentation:BIDMartin Roberts
7 Pre-Bind Quality Assurance (PBQA) Focus now on:Reducing Legacy UPR listing andEnsuring Pre-Bind Quality AssuranceEngagement with the market has included:Fact find on current ‘PBQA’ procedures within Lloyd’sWorking Group shaped market approach to PBQA & endorsement by UCC of proposals to marketLiaison with LMA, LMBC & IUA to encourage consistency on ‘Documentation and Contract Checking’ issuesKieran Flynn
8 Pre-Bind Quality Assurance (PBQA) PBQA addresses CC, Tax & Regulatory and Lloyd’s Advisory/ Risk Management checksResponsibility of MAs from 1 July 2007:Recognition of declining volume of Lloyd’s Policy requests andCessation of Stage 2 checks by XISLloyd’s Market Bulletin will underline risk-based approach expected:Each MA has own PBQA procedures, reflecting individual riskKMF-Lloyd’s Market Bulletin will underline the risk-based approach expected:Each MA will have assessed their own risk and set appropriate PBQA proceduresOptions to manage PBQA-risk include:reliance on experienced u/w personnel,use of QA Tool checks,use of information in Lloyds.comearlier receipt of slips from brokers,use of wordings technicians,use of service providers,use of model wordings,use of s/ware to automate checks
9 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 StandardsBroking 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 Lloyds.comCrystal – Tax & Regulatory information, complementing QA ToolEnhancing QA Tool checks/ process (will take time)KMF- Apart from setting a clear approach to PBQA generally, Lloyd’s is seeking practical ways to assist- Recognise the importance of engaging with brokers – early discussions with LMBC, LMA & IUA show a willingness to work together – Broker Forum on 16 April was successful…we are all in this together- Run through each development above- Reinforce that Lloyd’s is here to assist the market now and beyond the 1 July 2007 date
10 Working together – What’s in it for brokers? Enhanced service for brokers’ clients once implementedCertainty in document content/formatFaster final contract to clientReduction in post placement administrationEasier to achieve 30 day target for contract issuanceMike Reidie- Hopefully able to reinforce the message that once fully implemented, the new procedures will be beneficial to all
11 Any Questions? RT Panel in place at front please Name/ Firm/ Question – to whom is it addressed?
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