With

Market Reform Office

Market Reform ForumJune 2009

Christopher Croft, MROKeith Alderman, PRO Insurance SolutionsBarnabas Hurst-Bannister, Travelers Syndicate Management Ltd

-----------------------------------------------------------

Mark

et

Refo

rm 2

00

9Market Reform

OfficeAgenda

• Market reform update

• Barnabas…

Mark

et

Refo

rm 2

00

9Market Reform

OfficeFWWS

• Reminder: MRG targets for finishing what we have started:

– Full usage of eAccounting by end 2010

– Full usage of ECF for all claims by end 2010

– ePolicies used for 90% of signings by end 2009

• Work to be done:

– Build and implement an eAccounting capability at XIS and broker firms

– XIS to develop and deliver a non-fundamental splits service

– Expand the scope of ECF to cover all claims

– Improve usability of ECF to drive full usage

Mark

et

Refo

rm 2

00

9Market Reform

OfficeFWWS next steps

• Development programme

– IMR Security model to expand scope of IMR

– XIS systems development to accept and process structured accounting messages

– Non-fundamental splits service

– “ECF2” package of usability improvements

– Binders solution for ECF

On target for Nov 2009

On target for Sept 2009

On target for May 2010

TBD June MRG

TBD June MRG

Mark

et

Refo

rm 2

00

9Market Reform

Office

Electronic policy signings

0

500

1000

1500

2000

2500

3000

3500

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total policies signed Electronic policies signed

Electronic proportion Monthly interpolated target

Mark

et

Refo

rm 2

00

9Market Reform

OfficeElectronic policy submissions

0

500

1000

1500

2000

2500

3000

3500

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total policies signed Electronic requests Electronic proportion

Mark

et

Refo

rm 2

00

9Market Reform

OfficePolicy requests index 2006 - 08 (Feb 2007 = 100)

0

10

20

30

40

50

60

70

80

90

100

Policy requests index* (Feb 2007 = 100)2006 20082007

*index based on an indicative sample of data

Mark

et

Refo

rm 2

00

9Market Reform

OfficeeMRCE

• MRG target – 3,000 in April; achieved 2,854

• Marsh at circa 35% of all endorsements

• Endorsement volumes follow a seasonal pattern?

Mark

et

Refo

rm 2

00

9Market Reform

OfficeElectronic endorsements - broker submissions

0

500

1000

1500

2000

2500

3000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Total Broker submissions Monthly Interpolated target MRG Target

Mark

et

Refo

rm 2

00

9Market Reform

OfficeEndorsements volume by month (index: Jan 2005 = 100)

0

20

40

60

80

100

120

140

160

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2005 2006 2007 2008 2009

Mark

et

Refo

rm 2

00

9Market Reform

OfficeEndorsements volume by month (index: Jan 2005 = 100)

0

20

40

60

80

100

120

140

160

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 2008 2009

Mark

et

Refo

rm 2

00

9Market Reform

OfficeElectronic placing

• Aon’s 2009 Watertrace report on ePlacement

• 73% of brokers and 77% of underwriters have increased their use of ePlacement support tools over the past year

• Recommendations

– Consultation through the creation of cross-market practitioner forums and working groups across all lines of business to allow process development and systems enhancement discussions;

– Emphasise the continued importance of face to face negotiations, while saving of individual brokers and underwriters’ time through the use of ePlacement support;

– Creation and promotion of the business case for more broking houses to participate in ePlacement;

– Back office systems to be more effectively integrated by underwriting firms to reduce re-keying and error rates.

Mark

et

Refo

rm 2

00

9Market Reform

OfficeLloyd’s Exchange

• The business pilot began 1st June and pilot participants are exchanging test messages over the Lloyd's Exchange

• Expect to see "live" business messages being sent very soon

• So far 18 participants have been successfully set up

• An IT suppliers trade fair was held 15th June so that organisations could understand what connection options were on offer by the different IT suppliers

• Contact

–Lloyds.exchange@lloyds.com

–http://www.lloyds.com/lloyds-exchange

Mark

et

Refo

rm 2

00

9Market Reform

OfficeMRC – version 1.3?

• Cross market group progressing

• Tax guidance central

• If there is a new version, timescales will be similar to previous years

Mark

et

Refo

rm 2

00

9Market Reform

OfficeStrategy

• Aim – to provide detailed description of “market of choice” that will aid investment decisions

• Discussions with market leaders

• Work with Associations and Lloyd’s

• Consultation paper - draft to MRG in July

• Target: publish in September

Mark

et

Refo

rm 2

00

9Market Reform

Office

Questions?