Transcript Document

Market Reform
Programme
Office
Electronic
Claims
Electronic Claim File Briefing
Development and Implementation
update
13th September 2006
Follow up to last update on 21st March2006
Electronic Claims File
Agenda
Page 2
Electronic Claims
• Introduction and Welcome
Ian Mallery
• Status Review
Ian Mallery
• Testing Approach & Outcome
Adam Stafford
• Early Implementations
Simon Collins
• A Broker’s View
Trevor Maddison
• XCS & Electronic Claims
Stephen Matthews
• Project Funding & Governance
Carl Phillips
• Questions and Close
Carl Phillips
Electronic Claims File
Electronic Claims
Page 3
Introduction and Welcome
Ian Mallery
Marlborough and ECPG
Electronic Claims File
Electronic Claims
Page 4
Status Review
Ian Mallery
Marlborough & ECPG
Electronic Claims File
LMA ECF Objective
• To replicate today’s file electronically
– Not a Blue Sky Claims System development
• Based on existing products
– Changes to CLASS out of scope (except look and feel)
– No change to SCM, USM or LIMCLM
– Work with underlying software capabilities
• Provide a base product on day 1
– To be evolved once experience gained
• Post implementation of base product
– Strategic review of on-going development
– e.g. Third Party Access / Leader Reserves
Page 5
Electronic Claims
Electronic Claims File
Electronic Claims
Page 6
ECF Screens
Data
CLASS
Broker
Input
Documents
Repository
· References
· Paid / Outstanding
Amounts
· Claim Status /
Agreement
· Reports
· Correspondence
· Bordereau
· Placing Documents
Agreement Parties Can Review All Claim Details, Perform
Updates & Record Agreement in One Place
(Without a Broker?)
Insurer
Access &
Input
Electronic Claims File
Screen shot – Transaction Summary Screen
Electronic Claims
Page 7
Electronic Claims File
Systems Processes & Procedures
Page 8
•
Electronic Claims
Systems Processes and Procedures
– High-level guide
– NOT a systems user manual or adjusting manual
– First time of publishing for the market
•
Workshops convened to review generic process and class of
business variations
– Confirmed generic process
– Confirmed little variation by class of business
– A key benefit was to identify the operational issues
Electronic Claims File
Scope
Page 9
•
Electronic Claims
Business or Claim Types that ECF has Never Been
Required to Support:
–
–
–
–
–
–
–
–
Claims on unsigned risks
Claims Payable Abroad
General Average
Letters of Credit, loss reserves and Outstanding Cash
Advance (OCAs)
Proportional treaties
Scheme Canada
Bulk Settlements
Direct Livestock
Electronic Claims File
Scope
Page 10
•
Electronic Claims
Business or Claim Types excluded from the current
implementation of ECF:
– Delegated Lead to XCS (other than 100% Delegation, which
is in scope)
– Binding Authorities, Cover Collections and Other Bordereaux
Claims
– Political risks
– Aviation verticals
– Certain Multiple OSND claims
– Third Party Access to ECF
– Legacy paper claims files
•
However, solutions in progress
Electronic Claims File
Binders & ECF
Page 11
Electronic Claims
• Binder characteristics:
– Losses within Delegated Authority
– say £25k, reported via periodic bordereau
– Losses above DA but below Market Reporting Threshold
(£100,000)
– require separate file but accounted via bordereau
– Individual losses above DA & Market Threshold
– require individual file & financials cross referenced with the bordereau
Electronic Claims File
The Repository + CLASS model
Page 12
Electronic Claims
Electronic Claims File
The Repository + CLASS model
Page 13
Electronic Claims
Electronic Claims File
Binders & ECF
Page 14
Electronic Claims
• However, certain relationships are already
implementing binders on ECF
• This may produce a transferable model
Electronic Claims File
Features
• Broker submits claim electronically
– Enables parallel presentation to insurers
– Reduces data transcription errors
– Allow brokers to concentrate on complex claims
• Improved insurer access to information
– It’s the insurers’ file
– Concurrent access to all subscribing insurers
– 24/7 access, worldwide
– Business continuity
Page 15
Electronic Claims
Electronic Claims File
ECF
Page 16
Electronic Claims
• Delivers first version
– of an integrated electronic claims service for Lloyd’s
– replicating existing file electronically
– with improvements where possible
– companies and syndicates can see the same claim
• Things change and we won’t have thought of everything
• There will be more issues and enhancements
– Legacy claims
– Issues recorded
Electronic Claims File
MAT Issues & Sign off
Page 17
Electronic Claims
• Response times- Ongoing monitoring
• Conflicts – Change Request raised
• Deny Button – Future discussion at LMCG
• All issues logged
• Sought unanimous Managing Agent approval
• Known issues relayed to SDG
• Achieved ECF sign-off
Electronic Claims File
Next Steps
Page 18
Electronic Claims
• November Release – Patches for faults raised in MAT
• February 2007 – Delivery of Key Change Requests
• Review of all issues recorded during design
• ECPG will continue until March 2007
• Contractual Framework
Electronic Claims File
Electronic Claims
Page 19
Market Acceptance Testing
Approach and Outcome
Adam Stafford
MRPO
Electronic Claims File
Timetable
Page 20
Electronic Claims
• Market involvement in approach through workshops
Q1 2006
• ECPG agreement to MAT Plan, Strategy and Comms Plan
March 2006
• Scripting, scheduling detailed planning
• Interactive Testing
• DRI Testing
April 2006
15th May – 31st July 2006
1st August – 1st September 2006
• Disaster Recovery Tests
23rd – 25th August 2006
Electronic Claims File
Testing Approach – Brief Overview
• Identified a matrix of possible routes a claim can take (around
500)
• Resulted in 67 scripts
– After removal of duplicate and invalid routes
• Each script extended to include Variations and Error Conditions
• Each script tested by a different combination of Managing Agent
and Broker (with XCS)
• Tested End to End claims process from first advice to settlement
with Brokers, Managing Agents, Followers and XCS
• Ensured consistency of Systems Process and Procedures with
operation of the System.
Page 21
Electronic Claims
Electronic Claims File
Results
Page 22
Electronic Claims
• 66 Scripts Completed out of 67 Tested
– One script was only 50% proven, with issues arising around
conflict notification.
• 262 Issues Raised; 243 Resolved
– No open ‘Showstoppers’ remain, and all known issues will
be resolved by February with some being fixed in November
• Stability – during MAT some stability issues arose, these
were fixed in early August
• Performance – Contractual Requirements have largely been
met but some Managing Agents have experienced slow
responses.
• LMA SDG took decision to go live based on positive
presentation from ECPG.
Electronic Claims File
Thanks to all Participants in MAT:
Page 23
Electronic Claims
• Managing Agents
– Ace, Amlin, Beazley, Danish Re, Faraday, Heritage, Hiscox,
Limit, Markel, Marlborough, St Paul, Novae (SVB) &
Wellington.
• Brokers
– Benfield, Guy Carpenter, Marsh, Miller & Willis
• XCS
Electronic Claims File
Electronic Claims
Page 24
Early
Implementations
Simon Collins
MRPO
Electronic Claims File
Early Implementations
Page 25
•
Implementation by Broker-driven trading
partnerships
– by classes of business and risks
– with participating underwriters and XCS
– MRPO monitoring progress
– nearly 3 years
– concurrent paper file
•
Electronic Claims
Using existing CLASS and repository
Electronic Claims File
Early Implementations
Page 26
•
Electronic Claims
Benefits to Implementers
– early experience of electronic work
– assess impact on internal broker and carrier procedures
and processes
– input to system development through ECPG and BEFIT
•
Benefits to the project
– identify problems and issues early
– input to system and business process development
Electronic Claims File
Early Implementations
•
Current Volumes
– 9 Brokers, 28 Managing Agents
– 10 Classes of business
– Over 1000 First Advices
– Over 1600 claims movements
•
Ramp Up
– Not “big bang” - managed uptake
– Change in culture and processes
– Shift from Broker-driven alert to an electronic advice
– Build relationships to aid comfort
– IUA Pilot
Page 27
Electronic Claims
Electronic Claims File
How to get started
Page 28
Electronic Claims
1. Read and understood SP&P
2. Who are you going to partner with initially? What classes
of business?
3. Signed up to Contractual Framework
4. Logons, connection, training – Xchanging
5. Integration Testing
6. Register all partnerships with MRPO
7. Business procedure training with the CII
•
Start up procedures available on market reform website
Electronic Claims File
Electronic Claims
Page 29
A Broker’s View
Trevor Maddison
Marsh and BEFIT
ECF - A Broker’s View
Electronic Claims
Electronic Claims File
• Congratulations, the software is live and we are ready to trade.
• Delivery in less than two years
• A major slice of market reform delivered through partnerships proving
brokers and carriers can work together to deliver real change.
• The System Process & Procedure document a perfect example of
collaboration.
• One remaining broker issue to resolve concerning the Repository
rules, end of September target to complete .
• 5 brokers publicly committed to trading live, paperless claims.
- Aon, Benfield, Guy Carp, Marsh, Cooper Gay
- Approx 40pct* of market share new claims
Page 30
* Source: Lloyd’s Capital & Broker Relationships
Electronic Claims File
ECF - A Broker’s View
Page 31
Electronic Claims
• IUA Companies now actively participating in pilots. It’s important the
entire subscription market commits to ECF to be a true London
market success.
• The committed brokers need to work closely with their major markets
to ensure there is a robust transition process in place. The first 6
months are critical to achieving successful trading and proving a
point to all those doubters out there.
• The LMBC/BEFIT need to ensure broker involvement is rapid.
Underwriters may need to provide some gentle persuasion and
encourage take up.
• Lets make sure we don’t make ECF prohibitive via cost for the
smaller brokers or by making the process over complicated that
paper is the only answer.
• There will be issues, lets work through these and look forward to
providing a first class, paperless claims trading environment which
London can be proud of.
• New claims today, legacy tomorrow.
Electronic Claims File
Electronic Claims
Page 32
XCS and Electronic
Claims
Stephen Matthews
XCS
Electronic Claims File
XCS Involvement & Readiness
Page 33
Electronic Claims
•
Market has already invested £3.5million into development
of ECF system
•
XCS involved in first ECF early roll outs in April 2004
•
By August 2006, 74 early roll outs across multiple classes
of business
•
1000 electronic claims processed
•
XCS are signed up to Repository Rules
Electronic Claims File
XCS Involvement & Readiness
Page 34
Electronic Claims
•
35 XCS adjusters trained on ECF system
•
All XCS adjusters to have at least basic ECF training by
end of year
•
Minimum of 2 ECF adjusters, with one “Expert User”, per
class of business
•
2 out of 3 XCS adjusters currently have dual screen
technology
•
Dedicated project team of 10 people
•
Working on solutions – multiple OSNDs, binders, etc.
Electronic Claims File
ECF System: Transaction Summary
Page 35
Electronic Claims
Electronic Claims File
Transaction Summary (cont.)
Page 36
Electronic Claims
Electronic Claims File
Electronic Claims
Page 37
Project Funding & Governance
Carl Phillips
Amlin & SDG
Electronic Claims File
The Role of the SDG
• SDG reports to LMA Market Processes Committee (MPC)
• Responsible for delivery of CLASS at Lloyd’s / ECF on
behalf of Project fund providers (LMA Members)
• Tracks XIS performance against plans / budgets
• Manages changes to scope through Change Request
Process
• Ensures Managing Agents are appropriately involved /
informed
• Participates in Market Claims Infrastructure Project
Board
Page 38
Electronic Claims
Electronic Claims File
Time and Budget Summary
Electronic Claims
• Substantial market testing and implementation tasks
completed this year
• Completed software delivery to enable processing of
electronic claims across the Lloyd’s market on time
• Will not deliver everything on day one - need on-going
maintenance and review of Change Request log
• No change to agreed USM & SCM surcharges
• Early implementation partnerships growing
• Will change working practices from paper to electronic
Page 39
for many claims practitioners
Electronic Claims File
Impact on Budget
Page 40
Electronic Claims
• No changes to original funding arrangements
• 2006 surcharges:
– 34p USM & SCM for Repository running costs – reduction from 2005
– 19p SCM for CLASS at Lloyd’s running costs
– 25p SCM to December 2006 for repository development
– CLASS at Lloyd’s development (£597k) in three instalments
• Budget Forecast to the end of 2006
– Implementation, Infrastructure and Running costs
£5,266,912
– Change Requests
£ 365,000
– Total charges incurred
£5,631,912
– Revenue from surcharges and other licence charges
£6,143,941
– Surplus carried forward to 2007 for enhancements
£ 512,029
– CLASS running costs waived for 2005
• The project remains on budget
Electronic Claims File
Future
Electronic Claims
• Operational electronic claims by end 2006 for brokers,
Lloyd’s & IUA. Available today for Lloyd’s & brokers
• Roll out for processing new claims will continue into
2007
– Increasing pressure on any non participants
• This is just the “Base Camp” - foundation to:
– Migrate to ACORD business messages for claims
– Eliminate CLASS differences across the multiple systems
– Enable third party access e.g. loss adjusters
– Move existing claims from paper to electronic
Page 41
– Offer client tracking of claims
Electronic Claims File
Electronic Claims
Page 42
Questions & Close
Carl Phillips
Amlin