Transcript Title
Market Reform Forum
What’s new this month? e-Placing update
Andy Brookes, MRO Lisa Gibbard, Head of IT, Aspen Re Rob Gillies, Head of Market Reform Policy, LMA 28 th February 2008
With
Market Reform Office
Update across the reform agenda
• • • •
Placing Endorsements A&S and ECF Other stuff
Market Reform Office
• • • •
Placing
Contract certainty
– – Achieved ≥ 90% thorough 2007 No more stats to MRO
Will the MRC change this year? Hardly at all
– – See published paper for MRG policy No major changes (eg headings); minor usage updates; in synch with ACORD GPD; but remains London market controlled
MRC for binders and lineslips
– – To be published shortly Public sessions?
Electronic bureau policies
– 22% in January, from 17% in December
Market Reform Office
Endorsements: current status
•
Documentation standard (MRCE)
– London standard for contract changes from 1 April – So no more honeycombs –
To do:
ensure it is adopted in your (broking) firm. Underwriters – make a fuss if you see old style •
Electronic processing (e-MRCE)
– Documentation agreed and ready to publish –
To do
: digest and implement –
To do
: who in your firm needs to attend public sessions in mid-March? Contact
to register. –
To do
: adopt simple measurement template
Market Reform Office
e-MRCE: focus is e-mail
•
Just do it
– – Email widely used now for contract changes on international business Extend use of email to London Market business •
Keep it simple
– – – No new technology required So no need to wait for others to justify investment Easy bridgehead into electronic support for placing •
A supporting act to ACORD messaging
– Email use kicks off the sort of business changes required for electronic processing via ACORD messages (workflow)
Market Reform Office
A&S aims
• •
“All accounting and settlement of risks performed electronically” to deliver:
– – – – Rapid movement of premium and claims monies “Right first time” processing Increased efficiency with lower operational cost Lower operational risk
In practice this means…
– – – – Remove paper Remove the van Delinking Move to ACORD business messages and validation
• • • •
Market Reform Office
•
A&S current status
Insurers Market Repository (IMR) use
– – 75% (w/e 15 February) of original premium 56% of all premium (including APs and RPs)
No van service for in scope OPs from 1 April
– See published details on market reform website
No van service for APs & RPs from 31 December ACORD messages – single standard incorporating bureau and non-bureau
– – E-Accounting project being led by Richard Lester (Guy Carp) Move from scanned paper LPAN to structured data
Delinking
– c70%; guidance forthcoming
Market Reform Office
IMR Usage - Accounting & Settlement
80% 60% 40% 20% 0% Jan Feb Mar Apr May Jun Jul All submissions Aug Sep OP only Oct Nov Dec Jan Feb
• •
Market Reform Office
Claims
•
Lloyd’s 100% new in-scope end Q1
– 90%+ January •
IUA take up : end Q3 100% new in-scope Service contract in negotiation – slow going Service targets: LMRB own
– Measure first, then think about targets •
Legacy claims
– – End Q1 review of pilots ECF Flag being built •
MI report(s) being commissioned from Xchanging
Market Reform Office
IMR questions
• •
How is Xchanging’s performance in developing and running the IMR being managed?
•
What work is being commissioned from XIS (scope, usability, hardware)? What’s the cost and who is paying? Plans beyond the IMR?
Market Reform Office
IMR performance
•
LMRB’s role: to oversee Xchanging
– Performance stats – Xchanging give account at LMRB as necessary – LMRB chair, then MRG chair, for escalation •
LMRB view: Xchanging recognise the seriousness of IMR performance issues and have/are responding accordingly
Market Reform Office
IMR continuing investment
•
Increase scope
– relative importance down •
Improve usability
– – relative importance up but… ECF quote issues – CLASS is unwieldy and so changes are expensive •
Capacity
– – upgrades need funding Market audit team in place
Market Reform Office
Live issues on change requests
• • •
Legacy flag essential
– Due for May delivery
Workshops to scope future releases
– November; possibly August – Reviewing feasibility of ACORD solution to multiple OSND
User groups working well
Market Reform Office
What’s the strategy?
•
Keep going with ‘value for money’ improvements to IMR, while planning what next
•
Don’t let dreams of infrastructural nirvana stop us doing the hard yards now
•
LMRB focussed on IMR/ECF now, not long run plans
Market Reform Office
• • •
Future of claims infrastructure
Whose doing what?
– – – Lloyd’s Claims Strategy Review : IT infrastructure workstream IUA priority; LMBC Market Reform Strategy Group interested No overarching governance yet, but watch this space
What are the issues?
– – Replacing CLASS(s) : 4 versions ‘ ACORD for all’ : XIS likely Q2 User choice of ACORD message rather than EDI Recent XIS publicity
Time and cost and of CLASS changes makes this more pressing
Market Reform Office
Other stuff you should know
• •
IT Club with suppliers at 11:00 here
– Prepare your questions
Interchange agreement - background publication for reference
– Rob Campbell MRO contact