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With Market Reform Forum MRG Objectives 2008 Accounting and Settlement Progress and Plans Andy Brookes, MRO Mark Barwick, LMBC 31 st January 2008 Market.

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Presentation on theme: "With Market Reform Forum MRG Objectives 2008 Accounting and Settlement Progress and Plans Andy Brookes, MRO Mark Barwick, LMBC 31 st January 2008 Market."— Presentation transcript:

1 With Market Reform Forum MRG Objectives 2008 Accounting and Settlement Progress and Plans Andy Brookes, MRO Mark Barwick, LMBC 31 st January 2008 Market Reform Office

2 Market Reform 2008 Structure of presentation Reminders –Successes in 2007 –The MRG: role and principles London Market Reform Vision revisited 2008 MRG workplan and actions for firms Five things to do with your shiny laminate

3 Market Reform 2008 Building on the successes of 2007 (and 2006) 2007 was second year (at least) of tangible progress –2006: Contract certainty; MR Slip; IMR live for claims and A&S In 2007, significant reform in key areas –Contract certainty embedded; legacy ahead of 40% target –Market Reform Contract adopted; PBQA changes –ECF: 88% of new in-scope Lloyds claims in December 07 –ECF: 24 London market companies actively using ECF –A&S: 70% of Original Premium via IMR –Progress on e-placing, endorsements, electronic policies, de-linking A&S

4 Market Reform 2008 The Market Reform Group (MRG) MRG is the senior market-wide body responsible for overseeing and driving process reform in the London Market MRG will typically focus on and drive 2-3 key initiatives….. ….while planning the next steps

5 Market Reform 2008 The Market Reform Group (MRG) will…. Set vision, strategy and timetable for reform Resolve difficult cross market issues Communicate: influence and disseminate Set up governance for initiatives MRG firms lead by example and encourage laggards Ensure that initiatives are consistent Measure progress Drive use of standards with ACORD Ensure resources in place – people and funding

6 Market Reform 2008 The Market Reform Group (MRG): principles In overseeing and driving reform, MRG will: Work with the grain of the market Grasp the difficult issues Not be proprietorial Represent the London Market on reform Focus on cross-market co- ordination, not centralised delivery Take incremental steps: momentum is paramount and better than perfection Actively communicate with the market Reduce Londonisms Champion the formation and adoption of process standards Use the lead implementer model Use measurement to drive performance improvement

7 Market Reform 2008 London Market Reform Vision To be the market of choice This means: Maximising electronic processing across the market All risk submissions sent electronically; wholly electronic trading for some simple risks with no manual intervention; face-to-face when required for large and complex risks All claims processed and agreed electronically; face-to-face negotiation only when required for complex claims All accounting and settlement of risks performed electronically Using ACORD international standards for data messages and documents Common processes Agreed service levels

8 Market Reform 2008 London Market Reform Vision Resulting in the following benefits: First class client service Early receipt of high quality contracts Rapid claims processing and communication with clients Rapid movement of premium and claim monies Right first time processing Increased efficiency with lower operational cost Lower operational risk Flexibility to support bespoke business To be the market of choice

9 Market Reform 2008 Steps towards the vision All risk submissions sent electronically; wholly electronic trading for some simple risks with no manual intervention; face-to-face when required for large and complex issues Increase proportion of risks for which structured data is exchanged Adopt MRCE & increase use of e- endorsements Further reduce legacy risks Adopt Electronic Policies Vision 2007 – 2009 To be the market of choice PLACING 2008 actions for market firms

10 Market Reform 2008 Steps towards the vision All claims processed and agreed electronically; face-to-face negotiation only when required for complex claims Develop and extend ECF Adopt ECF for legacy claims Implement service targets for ECF claims CLAIMS 2008 actions for market firms Vision 2007 – 2009 To be the market of choice

11 Market Reform 2008 Steps towards the vision All accounting and settlement of risks performed electronically Develop & extend IMR use for all payments Extend use of De-linking Increase use of ACORD messaging for A&S submissions Vision 2007 – 2009 To be the market of choice 2008 actions for market firms ACCOUNTING & SETTLEMENT

12 Market Reform 2008 Steps towards the vision Placing document standard for London (MRC)Q1Confirm whether update required Implement MRC for Binding Authorities and LineslipsQ2Adopt as market standard Further reduce Legacy policiesQ1-Q4Reduce mid 2006 numbers to below 20% (Q4) Adopt Electronic policiesQ480% of bureau policies Market Reform Contract Endorsement (MRCE)Q2Adopt as market standard Endorsements via e-messagingQ4To be defined by Steering Groups (Q1) Promote take-up of electronic support for placingQ4To be defined by Steering Group (Q1) ECF Enhancements to increase scope and improve usage Q2, Q4Enhancements delivered Full ECF usage for new in-scope (as at end 2007) claims Q1 Q3 For Lloyds For IUA companies ECF for legacy claimsQ2-Q4Complete pilot, review targets (Q1) Implement Service targets for ECF claimsQ1Approach to service targets defined Placing Claims

13 Market Reform 2008 Steps towards the vision Implement A&S enhancements (Release 4)Q2Enhancements delivered Use repository for Original PremiumsQ1100% of original premiums Use repository for Additional & Return PremiumsQ4100% of submissions Adopt de-linkingQ3100% use for in-scope transactions Implement Premium Payment Working Party recommendations Q3, Q4Successful implementation A&S ACORD Messaging for bureau & non-bureauQ4To be set by Steering Group (Q1) Measurement/Benchmarking FrameworkQ1-Q4Continue measurement. Review need for Benchmarking (Q3) Collaboration with ACORD on standards developmentQ1-Q4As per ACORD 2008 objectives Accounting & Settlement Supporting

14 Market Reform 2008 The Market Reform Laminate This information is presented in the Market Reform Laminate This is available at

15 Market Reform 2008 Five things to do with your laminate Integrate them within your change programme –Explicit decisions on priorities, especially where not in first wave Relate the targets to your firm –Use within your scorecard –Beat the market wide targets; or be clear why you cant Get the objectives and progress in front of your Board –Without that, wheres the sponsorship? Put them in individual objectives Link to bonuses

16 Market Reform 2008 Contacts for further information Further information can be found on the Market Reform Office (MRO) website: Contact your Association…..

17 Market Reform DETAILED WORKPLANAppendix 1 Placing

18 Market Reform DETAILED WORKPLANAppendix 1 Claims

19 Market Reform DETAILED WORKPLANAppendix 1 Accounting & Settlement

20 Market Reform DETAILED WORKPLANAppendix 1 Support


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