Market Reform: 2006 progress 21 December 2006 Andy Brookes

Market ReformProgramme Office

Market Reform: 2006 progress

21 December 2006

Andy Brookes

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Contract Certainty

MRG Objectives 2006 +

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

MRG Objectives 2006 +

Overall CC score 92% in

September

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1);

MRG Objectives 2006 +

98% achievedOverall CC score 92% in

September

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

MRG Objectives 2006 +

98% achievedOverall CC score 92% in

September

Superseded by CC

measurement

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

MRG Objectives 2006 +

98% achieved

Overall CC score 92% in September

Superseded by CC

measurement

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

MRG Objectives 2006 +

98% achieved

Overall CC score 92% in September

Shared with the FSA

Superseded by CC

measurement

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

Superseded by CC

measurement

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

• Build user-friendly front-end for contract certainty checks (Q1)

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities

Superseded by CC

measurement

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Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

• Build user-friendly front-end for contract certainty checks (Q1)

• Market feasibility for next stage of development of QA tools (Q4)

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities

Further enhancements scheduled for Lloyd’s market next year

Superseded by CC

measurement

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tContract Certainty

What else is happening and what should be live issues for your firm?

• Industry Assessment of Success

–8th and 25th January with FSA

• MR Slip Guidance

–Orders Hereon, Document Production, Fiscal & Regulatory, NCAD.…

• Stamp Conditions

– guidance forthcoming

• Legacy

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tMRG Objectives 2006 +

Accounting & Settlement

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1);

Some statistics available from end October

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

Achieved, but lateSome statistics available

from end October

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

Achieved, but lateSome statistics available

from end October

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

Achieved, but lateSome statistics available

from end October

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

MRG reprioritisation.

Insufficient demand from market

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tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)

• Implement A&S repository (Q4)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

Email and Direct Load live Sept

MRG reprioritisation.

Insufficient demand from market

DRI live December

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tAccounting & Settlement

What else is happening and what should be live issues for your firm?

• Repository

–Take up

– Pricing

– Further phases in 2007

• Measurement and ‘right first time’

• Strategy

–Speak to Rob Campbell (MRPO)

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tClaimsInfrastructure

MRG Objectives 2006 +

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1);

MRG Objectives 2006 +

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

MRG Objectives 2006 +

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

MRG Objectives 2006 +

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use

Rescheduled for Q1, 2007

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tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)

• Set strategy for claims infrastructure beyond ECF (Q4)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use

Reviewed in A&S strategy work, ECF upgrades in MRG plans for 2007

Rescheduled for Q1, 2007

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tClaims Infrastructure

What else is happening and what should be live issues for your firm?

• Repository

–Take up

–Pricing

–Further phases in 2007

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Other

MRG Objectives 2006 +

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Other • Publish legacy Code of Practice (Q1);

MRG Objectives 2006 +

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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1);

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2);

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

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Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

MRG Objectives 2006 +

None set, training as required by firms

Need to demonstrate significant legacy reduction in 2007

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Other

In Addition

• Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

MRG Objectives 2006 +

None set, training as required by firms

Need to demonstrate significant legacy reduction in 2007

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Other

In Addition

• Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

• Schematron

MRG Objectives 2006 +

None set, training as required by firms

Tool to ensure right ACORD are messages sent

Need to demonstrate significant legacy reduction in 2007

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tCommunications

Questions