Market Reform Forum Andy Brookes, MRPO Stuart Dean, Willis Thursday 27 September 2007.

Market ReformProgramme Office

Market Reform Forum

Andy Brookes, MRPO

Stuart Dean, Willis

Thursday 27 September 2007

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Market Reform Update

•Developments in the past month

•Upcoming work and plans

•Special topic – Endorsements: improving the market process

–Stuart Dean, Willis

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Contract certainty - Headlines

• Performance continues to exceed 90% target – July brokers’ achievement rate – 95% (again)

• …..in line with managing agent (94% July) and company data (96% July)

Overall Contract Certainty achievement

80%

90%

100%

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

Broker CC rate MA CC rate Company CC rate

CC MRG target

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Contract Certainty Survey – next steps

• Contract Certainty survey being re-run now

– Check you have completed it

– Should be in this week

• Part of industry commitment to FSA

• Aim to demonstrate that CC approach has been embedded as business as usual

• Questions are similar to last year to allow comparison

• Lloyd’s demo of QA tool 12th October 9:00am

[email protected]

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CC survey – where were we?

Contract Certainty Systems & Controls% of firms: Total Market

1% 8%

13%

31%

43%

4%

Substantially underdeveloped

Underdeveloped

Well established

Very well established

Embedded

N/A

• CC Systems and Controls: Embedded or Very well established – 74%

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Legacy

• Lloyd’s index currently 38% August

– Ahead of year end target; but do not stop

• IUA 46% July

Legacy Index

0

20

40

60

80

100


Lloyd's Index Interpolated quarterly target

Quarterly target Company market index

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Legacy in 2008

• Need approach to deal with residue

• Cases where “current documentation prevails” is the best answer

– Insufficient counter parties still in existence

– Live claim in progress

– Little potential for a claim

• Clients requirement rules

• FSA watching this space, so need consistency across market

• ‘Principles and Guidance’ (2 pages) to be published shortly

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Market Reform Contract

• New “slip” standard published in June. Mandatory in Lloyd’s market from November 1

• Q&A from market sessions and from issues raised with Associations on MRPO website

• Binders and Lineslips

– Working on any required changes

– Unlikely to be mandatory before 01/01/08

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MRC further assistance

Brokers:

Email: [email protected]

Phone: 020 7397 0213

Lloyd’s Insurers:

Email: [email protected]; or

[email protected]

Phone: 020 7327 3333

IUA Insurers:


Phone: 020 7617 4445

General Queries:


Phone: 020 7327 5278

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ECF

• Lloyd’s ECF take up - substantial, but too slow

– 43% of in scope Lloyd’s claims (4 week average to mid-Sept)

• 6b live in August

– All binders, except co-lead, in scope

– Political risks can now be processed via ECF

• XIS new Gateway live

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ECF take-up in Lloyd’s

Market: Weekly ECF as % of In Scope Estimation: As at 14/09/07

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1

2007

6th

Apr

13th

Apr

20th

Apr

27th

Apr

4th

May

11th

May

18th

May

25th

May

1st J

un

8th

Jun

15th

Jun

22nd

Jun

29th

Jun

6th

Jul

13th

Jul

20th

Jul

27th

Jul

3rd

Aug

10th

Aug

17th

Aug

24th

Aug

31st

Aug

7th

Sep

14th

Sep

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Weekly In Scope New Claims (Estimation)

Weekly ECF New Notifications

Weekly New Notifications: ECF as % of In Scope Estimation

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ECF

• Rollout

– All bar 2 Managing Agents open for all business

– 36 brokers live (74% of total volume), listed on website

– Further 54 to be added by end 2007 (98% of volume)

– © 20 IUA companies live or going live

• LMBC to distribute data to brokers on their take-up

• Managing agent data available from Lloyd’s FPD

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ECF : Live issues• Co-lead binders

• Access Control List

– Work arounds available from late November

• IUA changes

– Eg Flag in Company Market CLASS : “using IMR for this claim”

– Late November live

• Contract for IMR use

– Getting sorted, but slowly

• Best practice workshop

– will publish tips; contact [email protected]

• Operational standards being developed

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Accounting and Settlement

•A&S use of IMR: rising but disappointing

–26% of submissions electronically in August–should be 60% in September

–35% of Original Premiums–APs more difficult if OP was in paper

–64 firms now ‘switched on’ (86% of total)

–MRG reviewing ‘end date’ for the van service for A&S

•Phase 3 MAT to start 1 October

– Proportional treaty, ACL work arounds

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A&S electronic submission as proportion of total

0%

20%

40%

60%

80%

100%


A&S electronic proportion Interpolated quarterly target

Quarterly target

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A&S Delinking

• On target >60% by end Q3

• MRG reviewing ‘end date’. Includes addressing any blockers.

• Brokers receiving individual data

Delinked rate

0%

20%

40%

60%

80%

100%


Delinked rate Interpolated quarterly target Quarterly target

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Delinking – year on year comparison

0%

10%

20%

30%

40%

50%

60%

70%


2007 Delinked % 2007 Mkt Avg 2006 Delinked % 2006 Mkt Avg 2005 Delinked % 2005 Mkt Avg

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Electronic Placement

• LMA Bulletin issued on 16th August (via Associations or see www.the-lma.com)

• Electronic Placing Steering Group in place

• LMA have developed a briefing pack for all interested participants

• Peter Holdstock

– 020 7327 8383

– [email protected]

• Rob Gillies

– 020 7327 8377

– [email protected]

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Other news…

• MRG developing plans for 2008

– Welcome input

– Email [email protected]

• Want to talk…?

– General reform updates/discussions

– Specific topics – MRC, IMR etc

– Email [email protected] to arrange

Market Reform Forum Andy Brookes, MRPO Stuart Dean, Willis Thursday 27 September 2007.

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Transcript of Market Reform Forum Andy Brookes, MRPO Stuart Dean, Willis Thursday 27 September 2007.