LMG Forum 2010 FWWS - eAccounts Release 1B targeted for Q4 2010 Release 2 targeted for Q3 2011
LMG Forum 2010 FWWS – ECF2 Some issues with MAT These have the potential to affect the go live date XIS has been asked to put forward any proposed changes to the ECF2 Management Group Full details will be communicated to the market as soon as possible when they are clear
LMG Forum 2010 Right first time Key Considerations paper to be published this week LIIBA & LMGS to visit the top 10 brokers by volume The Stage One Premium Checks have been reviewed by Lloyd's and Xchanging. The Tracker Codes are now live and will start filtering down in the RFT reports brokers receive. Project board reviewing targets and will make recommendation to LMG
LMG Forum 2010 Endorsements Market testing complete Firms moving onto business scenario testing Interchange agreement work ongoing Discussion on further roll out at July LMG
LMG Forum 2010 The Exchange The Message Exchange Ltd to be incorporated - equal representation from all four constituencies –IUA –LIIBA –Lloyds –LMA Owned by the market for the benefit of the market Transfer of contract with IBM
LMG Forum 2010 Non bureau business Modernisation aims for a single approach Non bureau could be around 10% of our market We should seek synergies where possible Working party to be formed!
LMG Forum 2010 Upcoming events Insurance Day Technology Summit – October 6 th Xchanging conference – November 25 th
LMG Forum 2010 So, how have we done…? We have not, yet, delivered eAccounts ECF2 is not scheduled to go live until September FWWS will stretch at least into 2011 and probably beyond Why?
LMG Forum 2010 FWWS 2009 - 10 We have made some mistakes –Underestimated the complexity of eAccounts –FWWS governance was inappropriate –Market was not an effective customer to XIS But we have learnt –Resolved governance problems
FWWS 2009 - 10 We have made some mistakes –Underestimated the complexity of eAccounts –FWWS governance was inappropriate –Market was not an effective customer to XIS But we have learnt –Resolved governance problems –Moorhouse Consulting –Clarity of responsibility on XIS side –Market procurement experts –Robust specifications, fully tested quotations, solid contractual footing
LMG Forum 2010 FWWS 2010 Finish What Weve Started –Fully costed –Fully justified – eg eAccounts CBA –Appropriately contracted for – fixed price –Effective governance Sounds simple but… –Standard approach in a single firm –But we are 250 separate firms –And we dont like paying for stuff…
LMG Forum 2010 Progress elsewhere… Class of business pilot a glint in the eye in July 2009 Now –100% of Managing Agents –26 Companies –80% by premium volume of Brokers Commitment to deliver Learnt our lessons –Governance & Planning –Realism Marine eEndorsements from 1 st September for the Vanguard and 1 st October for the…
LMG Forum 2010 Again, we have started so well finish… Discussions beginning on next classes of business once we have learnt the pilot lessons Wider roll out to all endorsements by the end of 2011 –Phased by classes Wider placing road map also up for debate –Likely to include a similar class of business approach –Binder declarations –More coherent links to premium settlement and claims
LMG Forum 2010 And also… Preliminary strategy discussions have become Future Processing Model –Looking at what we do not just how we do it –Do all of the elements of our transaction join up? –What central services do we continue to require? Strong governance & project management Early thoughts at LMG in September and here in October
LMG Forum 2010 Where are we…? In decent shape Strong consensus behind the current agenda FFWS lessons absorbed and strengthened our approach Bite sized chunks remains the way to go Endorsements pilot will face many hurdles but we have everything in our armoury needed for it to be a success Future Processing model will provide as much vision as this market can take and will provide a roadmap that will help firms plan their investment
LMG Forum 2010 Some truths remain self evident Consensus is key Manageable stages Pilot, prove, adjust, roll out Learn in the crucible of live business Technology supports business - it does not trade…
LMG Forum 2010 Straight Through Processing (STP) in the London Market What STP is not… The removal of manual intervention from the London process –Business is too complex to automate fully –Auto rating and other techniques have a place but cannot replace the underwriter for many of our risks What STP is… The removal of manual effort where it does not add anything –Capture data once, use it many times throughout the transaction –Capture data as close to source as possible –Join up the transaction such that data that should be captured at placing is not rediscovered when it comes to accounting or claims Increased auditability and, potentially, quality of data –Know where it came from and what you have done with it since –Bedrock of Solvency II compliance
LMG Forum 2010 What next…? Governance is now strong but overly complex? –Rationalise? –Close committees down???