Market Reform Forum Andy Brookes, MRPO Roy Laker, ACORD 29 March 2007.

Market ReformProgramme Office

Market Reform Forum

Andy Brookes, MRPO

Roy Laker, ACORD

29 March 2007

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Market Reform Update – Keeping up with the run rate

• Andy Brookes

– Recent progress – headline projects

– Recent progress – all other work

– And… other things to keep in mind

• Roy Laker - ACORD’s role in supporting reform


Headline Projects for 2007• Contract certainty, including legacy

• Electronic claims take-up (ECF)

• Electronic accounting and settlement IMR

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Contract certainty

• Performance continues to exceed targets – January brokers’ achievement rate – 93%

• Guidance consolidation task is nearing completion

– Will be discussed at MRG this afternoon

– Proposed round of wider circulation with your associations

– Publish early May

• FSA continue to monitor

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Summary of the guidance re write

• 11 documents to 1

• Builds on lessons learnt

• Definition modified to remove the inconsistency and confusion

• Removes the need for separate late placements guidance

• Timeless principles

– reference to targets, service levels or specific processes removed

• Spells out on how organisations can demonstrate performance

• Applicable to the whole UK general insurance industry

• New principle: “When contract certainty not met…..”

• Incorporates latest thinking on contract documentation

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Legacy

• Lloyd’s progress continues

– 21% reduction on July 2006 number by end February

• Company market figures now available

– Will enable aggregate measurement of progress

• Firms should monitor and measure success

• Sorting out the admin to clear the path

– Changes being progressed to prevent unnecessary items being added to the Unsigned Policy Report

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ECF and IMR – more use, more needed

• Claims

– All active Managing Agents, 36 Brokers and 1 Service Provider (XCS) signed up to ECF

– 12% of in scope Lloyd’s claims being processed electronically in February – up from January (8%) but pace of ramp up needs to increase if we are to hit targets

– Releases 6a and 6b – to allow Binders to be processed electronically - on target

– MAT 3rd April for release 6a

– MAT mid-June for release 6b

– IUA planning to come on stream

• A&S

– 55,000+ transactions have now been processed electronically

– Release 2 – more DRI functionality – on target for live in August


Market Reform Update

Other Projects

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Other projects

• Future slip developments

– Proposed slip strategy being discussed at MRG today

– MR slip and Global Placing Document (GPD): when to ACORD GPD?

– Either way, minor slip changes in the summer

• Contract quality: checking documentation

– LMA announcement on pre-bind checking, end of stage 2

– applicable for all contracts received by XIS for processing from 1 July

• Delinking (LMBC)

– Examining reasons why brokers don’t delink in order to devise solutions to these sticking points

• Right first time (LMBC)

– Forming additional working groups to support the project



The next ‘wave’ - pilots

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Pilot progress

• Develop standardised documentation and electronic messaging for endorsements (LMBC)

– Agreed proposal to replace Honeycomb with Addenda produced up front for agreement

– Pilot being planned for Q2

• Introduce ACORD messages between brokers and carriers/bureau (LMBC)

– ELPAN2 in UAT – go live planned for early May

• Develop electronic policy documentation (Lloyd’s/XIS)

– Lloyd’s have approved the principle

– With XIS to take forward

• G6 placing message

– LMA sponsored presentation to be held to publicise capability to their members



Other things to keep in mind…

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Beyond progress – focus on measurement and standards

• Continue to drive progress on projects but need also to focus on:

– Measuring that progress, and your place in the league table

– Making sure things don’t fall between the cracks – standards

• Case for measurement is clear

– How else will you know how your firm is doing if you don’t measure eg your repository use

– MRPO working with Xchanging to improve the quality of market data

– Looking to make firm specific data available to senior management (and show where you stand against your peers)

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Focus on measurement and standards

• Increased emphasis on standards

– Common processes, common definitions key to reform programme

– Lay foundation for increased electronic processing

– Standards to confirm the common approach vital

– Need cross market input to development and maintenance

– ACORD facilitate this…

• Roy

Market Reform Forum Andy Brookes, MRPO Roy Laker, ACORD 29 March 2007.

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Transcript of Market Reform Forum Andy Brookes, MRPO Roy Laker, ACORD 29 March 2007.