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With Market Reform Forum MRG plans; A&S repository Andy Brookes, MRPO 18 th January 2007.

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Presentation on theme: "With Market Reform Forum MRG plans; A&S repository Andy Brookes, MRPO 18 th January 2007."— Presentation transcript:

1 With Market Reform Forum MRG plans; A&S repository Andy Brookes, MRPO 18 th January 2007

2 Market Reform Page 1 Contents Background to market reform: building on the success of 2006 The MRG: role and principles London Market Reform Vision Work plan; 2007 and subsequent phases Contacts for further information

3 Market Reform Page 2 Background to market reform: building on the success of 2006 The market has made significant reform in a number of key areas: –Improved, measured Contract Certainty –Introduction of Market Reform Slip, building on the LMP slip –Improvement in contract documentation quality –Development of electronic support for the placing process –Electronic claims introduced using Insurers Market Repository –Electronic A&S submissions using Insurers Market Repository The discussion is no longer about whether we should undertake further reform; this is a given. The focus is what firms are doing now and what must do next. Further increasing momentum is key.

4 Market Reform Page 3 The Market Reform Group (MRG): role and principles ROLE MRG is the senior market-wide body responsible for overseeing and driving process reform in the London Market. Its principal responsibilities are to:- –Set vision, strategy and timetable for the market. –Resolve difficult cross market issues. –Communicate: influence the environment and disseminate information. –Set up governance for initiatives. –MRG firms lead by example, form lead implementer partnerships and encourage laggards. –Ensure that initiatives are consistent with each other and with vision. –Measure progress on individual projects and whole reform programme. –Agree standards and where necessary produce them. –Make sure that resources are in place –Project Managers, analysts, experts –Resolve funding for agreed initiatives MRG will typically focus on and drive 2-3 key initiatives

5 Market Reform Page 4 The Market Reform Group (MRG): role and principles PRINCIPLES In overseeing and driving reform, MRG will: 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

6 Market Reform Page 5 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

7 Market Reform Page 6 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

8 Market Reform Page 7 Steps towards the vision Embed Contract Certainty as business as usual Improve contract documentation quality Substantially reduce Legacy policies Develop Market Reform Slip and the Global Placing Document (ACORD Slip) Roll-out electronic placing message (ACORD phase 1) Develop standardised documentation and electronic messaging for endorsements Develop electronic policy documentation Implement ACORD messages to support the entire placing process Increase segmentation of processing between simple and more complex risks Complete roll-out of standardised documentation Further enhancement of electronic tools to support contract quality Implement and measure agreed service levels 2007 Actions for Market FirmsSubsequent phases PLACING

9 Market Reform Page 8 Steps towards the vision 2007 Actions for Market FirmsSubsequent phases CLAIMS Rapid increase in use of Insurers Market Repository (IMR) for all new claims Enhance IMR to cover all types of business Implement ACORD messages for all business Implement and measure agreed service levels

10 Market Reform Page 9 Steps towards the vision 2007 Actions for Market FirmsSubsequent phases ACCOUNTING & SETTLEMENT Rapid increase in electronic submissions by brokers using IMR Enhance IMR to cover all types of business aiding take-up Increase right first time submissions by brokers Increase use of delinking to speed up movement of money Introduce ACORD messages between brokers and carriers/bureau Implement ACORD messages for all business Implement and measure agreed service levels for movement of money

11 Market Reform Page 10 Steps towards the vision PLACING Embed Contract Certainty as business as usual Improve contract documentation quality Substantially reduce Legacy policies Develop Market Reform Slip and the Global Placing Document (ACORD Slip) Roll-out electronic placing message (ACORD phase 1) Develop standardised documentation and electronic messaging for endorsements Develop electronic policy documentation Implement ACORD messages to support the entire placing process Increase segmentation of processing between simple and more complex risks Complete roll-out of standardised documentation Further enhancement of electronic tools to support contract quality Implement and measure agreed service levels CLAIMS Rapid increase in use of Insurers Market Repository (IMR) for all new claims Enhance IMR to cover all types of business Implement ACORD messages for all business Implement and measure agreed service levels ACCOUNTING & SETTLEMENT Rapid increase in electronic submissions by brokers using IMR Enhance IMR to cover all types of business aiding take-up Increase right first time submissions by brokers Increase use of delinking to speed up movement of money Introduce ACORD messages between brokers and carriers/bureau Implement ACORD messages for all business Implement and measure agreed service levels for movement of money 2007 Actions for Market FirmsSubsequent phases

12 Market Reform Page 11 c.40% to 80%Q1 - Q4Increase use of delinking Maintain aggregate & individual firm CC performance above 90% Q1 - Q4Embed Contract Certainty as business as usual 80% of bureau submissionsQ1 - Q4Increase use and deliver further phases of Insurers Market Repository Halve Q4 06 query rateQ1 - Q4Increased right first time submissions by brokers Updated slip agreed and published (Q2) and adopted (Q4) Q1 - Q4Development of Market Reform Slip and the Global Placing Document (ACORD slip) Reduce mid 2006 numbers to 60% (Q2) and to 40% (Q4) Q1 - Q4Substantially reduce Legacy policies 100% of new claimsQ1 - Q4Increase use and deliver further phases of Insurers Market Repository Placin g TargetTimescale Claims A&S Market Reform initiatives

13 Market Reform Page 12 Phase 1 successful (Q1); Phase 2 successful (Q3) Q1 – Q3Complete Pilot: ACORD phase 1 - placing messaging; phase 2 - endorsement messaging; and, later, 2 way messaging Pilot successfulQ1 – Q3Define and complete ACORD Technical & Financial Account Messages pilot To be setQ4Roll-out ACORD Technical & Financial Account Messages Pilot successfulQ1 – Q2Define and complete Standardised Submissions pilot To be setQ2 - Q4Roll-out ACORD phase 1 - placing messaging; phase 2 – endorsement messaging; and, later, 2 way messaging Placin g TargetTimescale A&S Pilot successfulQ1 – Q2Define and complete Standardised Endorsement Documentation pilot Pilot successfulQ1 – Q2Define and complete Electronic Policy Documentation pilot Fit for MRG monitoringQ1 – Q4Measurement Framework Agreed by MRGQ1Develop Standards Strategy Supporting Market Reform initiatives (continued)

14 Market Reform Page 13 The Market Reform Laminate This information is presented in the Market Reform Laminate This is available at

15 Market Reform Page 14 Contacts for further information Further information can be found on the Market Reform Programme Office (MRPO) website: Contact your Association…..


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