With

Market Reform Office

Market Reform Forum

What’s new this month? Market Reform in the London Company Community

Christopher Croft, MRO

John Hobbs, Director of Market Services, IUA

27th March 2008

Market Reform Office

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Update across the reform agenda

• Placing

• Endorsements

• A&S and ECF

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Placing• EPlacing

– Benfield live with two-way ACORD messaging with Brit, Catlin and Kiln for 1 Apr 08 renewals.

– There are 4 brokers and 8 carriers placing live business using ACORD messages, and a further 6 brokers and 32 carriers currently investigating options or implementing ACORD Direct Messaging.

– Lloyd’s are developing a Data Exchange facility – next month’s forum.

– Measurement of live electronic placement activity is under way.

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Placing

• MRC for binders and lineslips

– Published

– Implementation date 1st July

– Public session 3rd April in Willis Auditorium

• Electronic bureau policies

– 14% February down from 22% in January

– Disproportionate amount of reinsurance business in 1/1 renewals?

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Endorsements: current status

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MRCE

• Documentation standard (MRCE)

– London standard for contract changes from 1 April

– So no more honeycombs

– FAQs on the website

– To do: ensure it is adopted in your (broking) firm. Underwriters – make a fuss if you see old style

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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)

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e-MRCE update

• You will hear from your Association

– Respond with requested info by 15th April

– Get measuring

• FAQs out next week

– Use of email – security/legality

– Evidence of cover

• Central directory of emails? Watch this space

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A&S current status• Insurers Market Repository (IMR) use

– 76% of original premium

– 48% of 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

• A&S repository user guide published

• 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

– PPWP recommendation

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IMR Usage - Accounting & Settlement

0%

20%

40%

60%

80%

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

AP/RP submissions OP only

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Claims• Lloyd’s 100% new in-scope end Q1

– 90%+ February

• IUA take up : end Q3 100% new in-scope. Data from April.

• Service contract in negotiation

– Hardware audit reporting soon

• Service targets: LMRB own

– Measure first, then think about targets

• Legacy claims

– End Q1 review of pilots – recommendation to MRG

– ECF Flag being built – May release

• Work being done on data provision

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IMR questions• Barnabas H-B “open letter”:Progress on electronic claims and

A&S has been very encouraging

– Further system enhancements will be delivered in May

– System reliability is a top priority

– Repository hardware upgrades will call for necessary investment

– ECF will be in use for some years; it needs further improvement and that will cost money

– Planning and delivering the next generation of claims infrastructure will be a major strategic effort

– Market firms have ready access to updates on ECF and A&S issues please take advantage of these.

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Other stuff you should know

• IT Club on “Quality Assurance in the Placing Process”

– Steve Hulm, Market Reform Office

– Roger Oldham, HSBC Insurance Brokers

– Geoff Maskell, Exari

– Emma Woolley, Canopius