With LMG Secretariat LMG Forum July 2010 Christopher Croft, LMGS Barnabas Hurst-Bannister, LMG.
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Transcript of With LMG Secretariat LMG Forum July 2010 Christopher Croft, LMGS Barnabas Hurst-Bannister, LMG.
With
LMG Secretariat
LMG ForumJuly 2010
Christopher Croft, LMGSBarnabas Hurst-Bannister, LMG
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Agenda
• Presentation
• Modernisation this month
• A year in the Chair
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Caption competition
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Chairman Personality
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FWWS - eAccounts
• Release 1B targeted for Q4 2010
• Release 2 targeted for Q3 2011
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FWWS – ECF2
• Some issues with MAT
• These have the potential to affect the go live date
• XIS has been asked to put forward any proposed changes to the ECF2 Management Group
• Full details will be communicated to the market as soon as possible when they are clear
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Right first time• Key Considerations paper
to be published this week
• LIIBA & LMGS to visit the top 10 brokers by volume
• The Stage One Premium Checks have been reviewed by Lloyd's and Xchanging.
• The Tracker Codes are now live and will start filtering down in the RFT reports brokers receive.
• Project board reviewing targets and will make recommendation to LMG
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RFT – some progress already
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Endorsements
• Market testing complete
• Firms moving onto business scenario testing
• Interchange agreement work ongoing
• Discussion on further roll out at July LMG
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The Exchange
• The Message Exchange Ltd to be incorporated - equal representation from all four constituencies
– IUA
– LIIBA
– Lloyd’s
– LMA
• Owned by the market for the benefit of the market
• Transfer of contract with IBM
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Non bureau business
• Modernisation aims for a single approach
• Non bureau could be around 10% of our market
• We should seek synergies where possible
• Working party to be formed!
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Upcoming events
• Insurance Day Technology Summit – October 6th
• Xchanging conference – November 25th
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Questions?
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Ask the Audience?
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Ask the Audience member to explain himself
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With
LMG Secretariat
A year in the Chair
Barnabas Hurst-BannisterChairman, London Market Group
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One year ago…
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A new Chairman set sail…
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At the forum
• 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 Nov 2009
On target for May 2010
Release from Q1 2010
Prototype approved
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At the forum
Proposal being developed for EPSG
o Governance. Clarify project aims and objectives.Re-focus EPSG and EPIG. Increased drive through marketassociations.
o Use Lloyd’s Exchange Forum to address businessimplementation needs of practitioners.
o Initiate a Class of Business pilot.
o Refine and embed the EP process from a practitioner’sperspective.
o Work with the market to develop case studies.
o Initiate a program to help the market manage thebusiness change by establishing and running practitionerworkshops.
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At the forum
Strategy
• 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
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So, how have we done…?
•We have not, yet, delivered eAccounts
•ECF2 is not scheduled to go live until September
•FWWS will stretch at least into 2011 and probably beyond
•Why?
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FWWS 2009 - 10
• We have made some mistakes
– Underestimated the complexity of eAccounts
– FWWS governance was inappropriate
– Market was not an effective customer to XIS
• But we have learnt
– Resolved governance problems
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FWWS 2009 - 10
• We have made some mistakes
– Underestimated the complexity of eAccounts
– FWWS governance was inappropriate
– Market was not an effective customer to XIS
• But we have learnt
– Resolved governance problems
– Moorhouse Consulting
– Clarity of responsibility on XIS side
– Market procurement experts
– Robust specifications, fully tested quotations, solid contractual footing
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FWWS 2010
• Finish What We’ve Started
– Fully costed
– Fully justified – eg eAccounts CBA
– Appropriately contracted for – fixed price
– Effective governance
• Sounds simple but…
– Standard approach in a single firm
– But we are 250 separate firms
– And we don’t like paying for stuff…
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Progress elsewhere…
• Class of business pilot a glint in the eye in July 2009
• Now
– 100% of Managing Agents
– 26 Companies
– 80% by premium volume of Brokers
• Commitment to deliver
• Learnt our lessons
– Governance & Planning
– Realism
• Marine eEndorsements from 1st September for the Vanguard and 1st October for the…
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Again, we have started so we’ll finish…
• Discussions beginning on next classes of business once we have learnt the pilot lessons
• Wider roll out to all endorsements by the end of 2011
– Phased by classes
• Wider placing road map also up for debate
– Likely to include a similar class of business approach
– Binder declarations
– More coherent links to premium settlement and claims
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And also…
• Preliminary strategy discussions have become Future Processing Model
– Looking at what we do not just how we do it
– Do all of the elements of our transaction join up?
– What central services do we continue to require?
• Strong governance & project management
• Early thoughts at LMG in September and here in October
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Where are we…?
• In decent shape
• Strong consensus behind the current agenda
• FFWS lessons absorbed and strengthened our approach
• Bite sized chunks remains the way to go
• Endorsements pilot will face many hurdles but we have everything in our armoury needed for it to be a success
• Future Processing model will provide as much vision as this market can take and will provide a roadmap that will help firms plan their investment
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Award winning
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Some truths remain self evident
•Consensus is key
•Manageable stages
•Pilot, prove, adjust, roll out
•Learn in the crucible of live business
•Technology supports business - it does not trade…
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Straight Through Processing (STP) in the London Market
What STP is not…
• The removal of manual intervention from the London process
– Business is too complex to automate fully
– Auto rating and other techniques have a place but cannot replace the underwriter for many of our risks
What STP is…
• The removal of manual effort where it does not add anything
– Capture data once, use it many times throughout the transaction
– Capture data as close to source as possible
– Join up the transaction such that data that should be captured at placing is not rediscovered when it comes to accounting or claims
• Increased auditability and, potentially, quality of data
– Know where it came from and what you have done with it since
– Bedrock of Solvency II compliance
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What next…?
•Governance is now strong but overly complex?
–Rationalise?
–Close committees down???
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Current governance
LMG
Future Processing model steering
group
Placing Working party
A&S working party
Claims Working party
Binders and Facilities Working
party
Claims process sub group
AAC
MIGeAccounts
Management Group
ECF2 Management
Group
eAccounts Steering Group
ECF User Group
Right First Time project board
Placing Support Steering Group
Endorsements Management
Group
Placing Support Implementation
Group
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Future processing…
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What next…?
•Continue to ensure modernisation is inclusive
–Not just G6 & big three
–Something there for everyone
–Proceed at a pace that strikes the right balance
•Constant realism…
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Sensitive to possible overload
•FWWS vs Future Process Model
•Solvency II vs Modernisation
•Always the same people involved
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Measurement must be king
• We have done the “bleeding obvious”
• Must get better at CBA
• Relies on firms to store and share relevant data
• LMGS & LIIBA working on it
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We’ve come a long way, but there is some way yet to go…
With
LMG Secretariat
A year in the Chair