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Market Reform Forum Christopher Croft, MRPO Thursday 26 th July 2007.

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Presentation on theme: "Market Reform Forum Christopher Croft, MRPO Thursday 26 th July 2007."— Presentation transcript:

1 Market Reform Forum Christopher Croft, MRPO Thursday 26 th July 2007

2 Market Reform Page 2 Market Reform Update Developments in the past month –Contract certainty & Legacy –MRC –ECF and A&S –Next wave –New information in bold Special topic – Electronic Placement –Rob Gillies, LMA

3 Market Reform Page 3 Contract certainty - Headlines Performance continues to exceed 90% target – May brokers achievement rate – 94%; … line with managing agent (94% June) and company data (96% May) New Code of Practice published

4 Market Reform Page 4 But dont relax on CC Demonstrate that contract certainty is embedded, no going back. Continue to monitor instances where contract formation post dates inception. We will update the FSA; but firm visits matter more Remember that contract certainty is still a regulatory priority and that the FSA has all the powers it needs And FSA care about legacy……

5 Market Reform Page 5 Legacy Measured by index number – volume as recorded in July 2006 is used as the base Target to reduce the index to 60% by end June and 40% by end 2007 Lloyds index currently 45% June –Ahead of target –Based on Unsigned Policy Report from XIS IUA 56% May –Ahead of target –Based on data direct from companies to IUA

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7 Market Reform Page 7 Legacy in 2008 Need to determine strategy for dealing with residue FSA interested so need robust plan and consistency across market Discussing with representatives from Associations, Lloyds and practitioners Recommendation to MRG in September

8 Market Reform Page 8 Market Reform Contract New slip standard published in June Four market seminars held to explain changes and what you need to do Q&A from these sessions and from issues raised with Associations on MRPO website Binders and Lineslips –Working on any required changes –Unlikely to be mandatory before 01/01/08

9 Market Reform Page 9 MRC further assistance Brokers: Phone: Lloyds Insurers: Phone: IUA Insurers: Phone: General Queries: Phone:

10 Market Reform Page 10 ECF and A&S Lloyds ECF take up on track (just); 29% in June –6b scheduled to go live mid-August –All binders, except co-lead, in scope IUA use of IMR for claims: tackling the barriers – service contract; functionality; costs; workarounds –Firms going live from 1 July A&S use of IMR: disappointing –Letters from Dane Douetil, Steve Matanle, Stephen Riley, Richard Ward –Presentations from LMA –MRG reviewing end date for the van –Take-up will improve A&S Delinking –Hitting the target >50% by end H1 –Brokers individual reports imminent from XIS –MRG reviewing end date

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14 Market Reform Page 14 Next wave – crests visible Endorsements pilot –Benefits: Improve customer service and market efficiency, support contract certainty –Objective: streamline documentation and process; for now, move towards electronic trading –This phase: Revised documentation, remote delivery and agreement. –Pilot launched (mid) May 2007, running to end September 2007 –Aon, JLT, Marsh, Miller and Willis – Direct classes –Core no. of Insurers signed up, now getting ad-hoc take up –Expanded into Marine, Construction, Property, D&O and Financial Risks. –1100+ endorsements processed –Endorsement section on MRPO website, briefing pack attached;

15 Market Reform Page 15 Next wave Electronic placement –Rob Gillies…

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