Presentation on theme: "Market Reform Forum Christopher Croft, MRPO Thursday 23rd August 2007."— Presentation transcript:
Market Reform Forum Christopher Croft, MRPO Thursday 23rd August 2007
Market Reform Page 2 Market Reform Update Developments in the past month Upcoming work and plans Special topic – How to get to 100% on ECF –Charles Lee, Cooper Gay
Market Reform Page 3 Contract certainty - Headlines Performance continues to exceed 90% target – June brokers achievement rate – 95% …..in line with managing agent (94% June) and company data (97% June)
Market Reform Page 4 Contract Certainty Survey – next steps Contract Certainty survey to be rerun in September Part of the commitment to FSA Aim to demonstrate that CC approach has been embedded as business as usual Wherever possible, questions will be the same as last year to allow comparison Aiming to circulate via Associations in w/c 3 rd September for completion by last week of the month
Market Reform Page 5 CC survey – where were we?
Market Reform Page 6 CC survey – what will happen with the results? Will depend on outcome… Feedback at market level to FSA a (hopefully) good message Any issues will be addressed via the Associations and a reconvened CCPB (if necessary) A good message will help with our conversations with FSA on legacy
Market Reform Page 7 Legacy Lloyds index currently 41% July IUA 52% June
Market Reform Page 8 Legacy in 2008 Need to determine strategy for dealing with residue – cases where current documentation prevails is the best answer –Insufficient counter parties still in existence –Live claim in progress –Little potential for a claim In all instances, if the (re) insured wants a policy, firms should do their best to meet this requirement FSA interested so need robust plan and consistency across market Discussing with representatives from Associations, Lloyds and practitioners Recommendation to MRG in September
Market Reform Page 9 Market Reform Contract New slip standard published in June. Mandatory in Lloyds market from November 1 Q&A from market 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
Market Reform Page 10 MRC further assistance Brokers: Phone: Lloyds Insurers: Phone: IUA Insurers: Phone: General Queries: Phone:
Market Reform Page 11 ECF Lloyds ECF take up on track % of in scope Lloyds claims (4 week average) –6b NOW LIVE –Singleton binders now in scope –All binders, except co-lead, in scope –Political risks can now be processed via ECF –Agreement party routing improvements IUA use of IMR for claims: continuing the transition to live –16 firms accepting claims via ECF –Represents in excess of 50% of company market –Work in progress: - service contract; functionality enhancements; operational costs; workarounds
Market Reform Page 12 Accounting and Settlement A&S use of IMR: better but still disappointing –24.5% of submissions sent electronically in July –65 firms now switched on and able to use the A&S Repository and these firms account for around 62% of the total submission volume. –MRG reviewing end date for the van. Includes addressing issues that might be hindering take up
Market Reform Page 13 Delinking A&S Delinking –Ahead of target >60% by end Q3 –MRG reviewing end date. Includes addressing any blockers. –Brokers receiving individual data
Market Reform Page 14 Delinking – year on year comparison
Market Reform Page 15 Electronic Placement LMA Bulletin issued on 16 th August (via Associations or see Electronic Placing Steering Group to meet for the first time on 24 th August LMA have developed a briefing pack for all interested participants Landscape analysis and benefits model due for publication in September Peter Holdstock – Rob Gillies –
Market Reform Page 16 Endorsements Objective: streamline documentation and process MRG July meeting: –The work should no longer be referred to as a pilot but should seek to transition to a phased market roll out; –For brokers and insurers already involved in the pilot this means a concentration on ramping up volumes; –For those firms yet to get involved, focus on enabling them to do so; and –Extend the process beyond the current business classes.
Market Reform Page 17 Endorsements Responding to MRG challenge –Alignment with MRC - an endorsement code of practice describing what an endorsement, its agreement and its evidence constitutes. –Alignment with Electronic Processing project - consistency with process and how remote agreement is achieved. –Interim mechanism - guidelines for those not yet EP enabled. –Robust implementation plan for wider adoption of the remote endorsement agreement processes –More formal documentation for users. See Newsletter and Stuart Dean at September Forum
SLIDE 18 ACORD – Key dates for London in 2007 TCF DRI messagesComplete Placing messagesComplete Accounting messagesAugust 2007 Placing Implementation Guide Complete for current work loadComplete Updated for London EndorsementsQ Accounting Implementation Guide EBOTAugust 2007 ELPAN2August 2007 DRI guide EnhancedFinal Draft Forums IT ClubOngoing Solution Providers ForumOngoing
Market Reform Page 19 Other news… Beginning discussion of reform agenda for 2008 with Associations. –Welcome input – Steve Hulm…the return Next forum Thursday 27 th September Want to talk…? –General reform updates/discussions –Specific topics – MRC, IMR etc – to
Peter Dalton – Business Sponsor Charles Lee – Project Manager
How did we reach 100%?
Project team to focus claims handlers – All brokers trained (roles changed) – Buy in from team who understand the benefits Excellent IT department (no major IT issues encountered) Close connection with receptive underwriters and market associations Collaboration with like minded broking houses Ethos is we use ECF Monitoring our own failings (and reasons) was vital
July 2007 ECF July 2007ECF - Lloyd'sECF - Company Non-participating CompanyOut of Scope CLASS Company not handling electronically Repository Rules Signatory but not Trading electronically %