With

Market Reform Office

Market Reform Forum

What’s new this month?

Updates on: Aon and Ri3K; endorsements

Andy Brookes, MRO

Ian Summers, Director of Change, Aon

John Muir, Senior Partner, Willis

29th May 2008

Market Reform Office

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Update across the reform agenda

• Placing – Aon and Ri3K as special topic

• Endorsements – the other special topic

• A&S and ECF

• With plenty of time for questions

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e-Placing• Benfield: 2 way for all Japanese 1 Apr 08 renewals with Brit, Catlin

and Kiln

– plan to roll this out to other business units for July renewals

• 4 brokers, 9 (was 8) carriers placing live business using ACORD

• 6 brokers and 31 carriers investigating ACORD messaging

• Developments

– Multi-Section Risk capability via ACORD messages - later this year

– Additional data to enhance existing LMA data set - early next year

• Measurement of activity in place – but no MRG targets

• Lloyd’s Exchange – no new info

• The Insurance Workplace launching E-placing solution

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Placing

• MRC for binders and lineslips

– Implementation date 1st July

– Implementation guides published in February

• MRCE for binders and lineslips

– Implementation guides published this month

– Available to use now

– Market standard from 1 September

• MRC for lineslip declarations

– Draft circulating for comment

• Electronic bureau policies

– 29% in April; was 19% in March

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Legacy reduction

Legacy Indexmid 2006 = 100

0

510

1520

25

3035

4045

50

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

Company Market Index Lloyd's index

Monthly interpolated target 2008 MRG target

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A&S current status

• Insurers Market Repository (IMR)

– 90% of original premium (4 weeks); 90% latest week

– So, nearly there on the OPs target

– LMBC, on behalf of MRG, published performance data in May

• No van service for APs & RPs from 31 December

– 65% of APs and RPs (4 weeks) from 53% last time; 67% latest week. See newsletter graph.

• A&S Release 4 live on 27 May

– Five changes to improve usability; details on website

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A&S current status

• Delinking

– Rising slowly; guidance forthcoming; PPWP recommendation

– Renewing reports for brokers

• E Accounting – single standard for bureau and non-bureau

– Move from scanned paper LPAN to structured data

– Enthusiasts Forum once per month

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Claims

• IMR – improved performance

• Lloyd’s 100% new in-scope end Q1

– 90%+ March – no new data, but internal XIS change will improve counting in June

• IUA take up : end Q3 100% target for new in-scope

– IUA data 23% for April

• Upgrades

– Transition flag live in May release

– Improvements planned for November

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Claims

• Service contract negotiations

– Hardware audit plus iteration over service levels and costs

– Costed proposition to market in June

• Service targets: measure, then think about targets

– Three MI reports commissioned from Xchanging

– Firms should receive these in August/September

• Legacy claims

– Restricted pilots underway; MRG agreed extension to August

• Beyond CLASS – thinking starting

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IMR usage for ECF and A&S

IMR Usage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

A&S OP OnlyECF (Lloyd's only)

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Other stuff

• Peter Harmer, CEO Aon UK, new MRG chair

• ‘Next wave’ thinking starting

– Without losing focus on “finish what we started”

• Demand for beginners session tailing off

– Planning them once a quarter

• Tailored sessions for firms still available

• Frontline sessions being planned