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Market Reform Office
Market Reform Forum
Christopher Croft, MRO
Roger Oldham, HSBC
Thursday 29th November 2007
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2008 Venue – you decide
• Market forums to be held in either:
– Old Library, Lloyd’s; or
– Balls Brothers before IT Club
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Market Reform Update
•Developments in the past month
•Draft 2008 MRG work plan
•Special topic – Delivering Reform within HSBC
–Roger Oldham
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Contract certainty
• Brokers 96% (Sept), Managing Agents 95% (Oct), Company 96% (Sept)
• Proposal to stop central measurement in 2008 – discussion with FSA
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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Legacy
• Lloyd’s index currently 37% September
• IUA 40% September
– Ahead of year end target; but do not stop
Legacy Index
0
20
40
60
80
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lloyd's Index Interpolated target
MRG target Company market index
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Legacy in 2008
•New ‘Principles and Guidance’ (2 pages) published
•Will be a target for next year
•Measurement to continue
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Market Reform Contract
• New “slip” standard now mandatory in Lloyd’s market
• Binders and Lineslips
– Watch this space …
• Resources (www.marketreform.co.uk)
– Market Reform Contract - Frequently Asked Questions
– Market Reform Contract - Interactive example
– MRC
– Data dictionary
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Insurer’s Market Repository
IMR Usage
0%
10%
20%
30%
40%
50%
60%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
A&S OP Only ECF (Lloyd's only)
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IMR Headlines
• ECF
– 59% of in scope claims being processed electronically (as at mid Nov)
– 59 Brokers live (accounts for 88% of total claims volume). By end 2007 plan to have 29 more brokers (accounting for 98%).
– 14 IUA firms accepting live claims via ECF. 13 further IUA firms planning to get up and running by end 2007 (+ non members >30)
– All company market insurers are committed to adopting the ECF system during 2008.
– Phase7 scoping under way
• A&S
– 112 Brokers now live. (93% of the total submission volume).
– 46% of Original Premium submissions via ECF (at 16th November)
– Phase 3 – Proportional treaty, ACL workaround NOW LIVE
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A&S Delinking
• On target at 64% but seasonal…
• MRG reviewing ‘end date’. Includes addressing any blockers.
• Brokers receiving individual reports on delinking performance
Delinked rate
0%
20%
40%
60%
80%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Delinked rate Interpolated quarterly target Quarterly target
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A&S Delinking seasonal pattern – Lloyd’s market
0%
10%
20%
30%
40%
50%
60%
70%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 Delinked % 2006 Delinked % 2005 Delinked %
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Other projects
• A&S Messaging
– Implementation work continues in the background
– Further plans in progress for 2008
• Electronic Placing – LMA leading
– Electronic Placing vision & proposal for measurement in discussion
– Adoption roadmap in development together with analysis of barriers to adoption
– Market engagement: 25 managing agents (7 live), 9 non-Lloyd’s companies (1 live) and 6 brokers (4 live) engaged to varying degrees
– Project materials development: benefits model, landscape analysis and other resources
• Endorsements
– MRC Endorsement (MRCE) to be published shortly
– Work progressing on principles and processes required for remote (electronic) agreement
– Joint work with Placing project on usage scenarios in progress with ACORD
– Measurement mechanisms being finalised
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Market Reform 2008 Plans
• Started so we’ll finish…
• ECF
– 100%
– Upgrade software to increase scope and/or usability – views?
– Hit legacy claims
– Plus service standards and measurement
• A&S
– 100% (OPs by 1/4)
– Include all RPs and APs
– Further software releases
– Note: expect to keep investing in IMR
• Legacy policies
– Nail them – xx%?
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Market Reform 2008 Plans
• Further develop structured electronic capability
• Endorsements
– MRCE for all
– E-endorsements; measure and target
• Placing: electronic support
– LMA work to continue to drive & support
– Measurement (& targets?)
• A&S
– ACORD business messages to bureau and non-bureau
– Premium Payment – implement any deal
– Delinking for all
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Market Reform 2008 Plans
• Third rank – useful but not headline
– E-Policies for all (who want them)
– MRC for binders and lineslips
• Planning the next wave
– Claims: Feasibility / usefulness of ACORD’ising CLASS
– Documentation quality : PBQA +? Use for A&S?
• Underpinned by………
– Benchmarking and measurement
– Standards and support with ACORD
– ‘Grain of the market’
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Other news…
•MRG chair – Stephen Matanle from Jan 2008
•Dane’s speech online
• ‘Beginners’ sessions scheduled
•Want to talk…?
– General reform updates/discussions
– Specific topics – MRC, IMR etc
– Email [email protected] to arrange
