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Market Reform Forum

Market Reform Forum. Christopher Croft, MRPO Thursday 23rd August 2007. Market Reform Update. Developments in the past month Upcoming work and plans Special topic – “How to get to 100% on ECF” Charles Lee, Cooper Gay. Contract certainty - Headlines.

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Market Reform Forum

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  1. Market Reform Forum Christopher Croft, MRPO Thursday 23rd August 2007

  2. Market Reform Update • Developments in the past month • Upcoming work and plans • Special topic – “How to get to 100% on ECF” • Charles Lee, Cooper Gay Page 2

  3. Contract certainty - Headlines • Performance continues to exceed 90% target – June brokers’ achievement rate – 95% • …..in line with managing agent (94% June) and company data (97% June) Page 3

  4. Contract Certainty Survey – next steps • Contract Certainty survey to be rerun in September • Part of the commitment to FSA • Aim to demonstrate that CC approach has been embedded as business as usual • Wherever possible, questions will be the same as last year to allow comparison • Aiming to circulate via Associations in w/c 3rd September for completion by last week of the month Page 4

  5. CC survey – where were we? Page 5

  6. CC survey – what will happen with the results? • Will depend on outcome… • Feedback at market level to FSA a (hopefully) good message • Any issues will be addressed via the Associations and a reconvened CCPB (if necessary) • A good message will help with our conversations with FSA on legacy Page 6

  7. Legacy • Lloyd’s index currently 41% July • IUA 52% June Page 7

  8. Legacy in 2008 • Need to determine strategy for dealing with residue – cases where “current documentation prevails” is the best answer • Insufficient counter parties still in existence • Live claim in progress • Little potential for a claim • In all instances, if the (re) insured wants a policy, firms should do their best to meet this requirement • FSA interested so need robust plan and consistency across market • Discussing with representatives from Associations, Lloyd’s and practitioners • Recommendation to MRG in September Page 8

  9. Market Reform Contract • New “slip” standard published in June. Mandatory in Lloyd’s market from November 1 • Q&A from market sessions and from issues raised with Associations on MRPO website • Binders and Lineslips • Working on any required changes • Unlikely to be mandatory before 01/01/08 Page 9

  10. MRC further assistance Brokers: Email: chris.buer@lmbc.co.uk Phone: 020 7397 0213 Lloyd’s Insurers: Email: peter.martin@lmalloyds.com; or Neil.smith@lmalloyds.com Phone: 020 7327 3333 IUA Insurers: Email: john.hobbs@iua.co.uk Phone: 020 7617 4445 General Queries: Email: chris.croft@marketreform.co.uk Phone: 020 7327 5278 Page 10

  11. ECF • Lloyd’s ECF take up on track - 41.3% of in scope Lloyd’s claims (4 week average) • 6b NOW LIVE • Singleton binders now in scope • All binders, except co-lead, in scope • Political risks can now be processed via ECF • Agreement party routing improvements • IUA use of IMR for claims: continuing the transition to live • 16 firms accepting claims via ECF • Represents in excess of 50% of company market • Work in progress: - service contract; functionality enhancements; operational costs; workarounds Page 11

  12. Accounting and Settlement • A&S use of IMR: better but still disappointing • 24.5% of submissions sent electronically in July • 65 firms now ‘switched on’ and able to use the A&S Repository and these firms account for around 62% of the total submission volume. • MRG reviewing ‘end date’ for the van. Includes addressing issues that might be hindering take up Page 12

  13. Delinking • A&S Delinking • Ahead of target >60% by end Q3 • MRG reviewing ‘end date’. Includes addressing any blockers. • Brokers receiving individual data Page 13

  14. Delinking – year on year comparison Page 14

  15. Electronic Placement • LMA Bulletin issued on 16th August (via Associations or see www.the-lma.com) • Electronic Placing Steering Group to meet for the first time on 24th August • LMA have developed a briefing pack for all interested participants • Landscape analysis and benefits model due for publication in September • Peter Holdstock • 020 7327 8383 • peter.holdstock@lmalloyds.com • Rob Gillies • 020 7327 8377 • robert.gillies@lmalloyds.com Page 15

  16. Endorsements • Objective: streamline documentation and process • MRG July meeting: • The work should no longer be referred to as a pilot but should seek to transition to a phased market roll out; • For brokers and insurers already involved in the pilot this means a concentration on ramping up volumes; • For those firms yet to get involved, focus on enabling them to do so; and • Extend the process beyond the current business classes. Page 16

  17. Endorsements • Responding to MRG challenge • Alignment with MRC - an endorsement code of practice describing what an endorsement, its agreement and its evidence constitutes. • Alignment with Electronic Processing project - consistency with process and how remote agreement is achieved. • Interim mechanism - e-mail guidelines for those not yet EP enabled. • Robust implementation plan for wider adoption of the remote endorsement agreement processes • More formal documentation for users. • See Newsletter and Stuart Dean at September Forum Page 17

  18. ACORD – Key dates for London in 2007 • TCF • DRI messages Complete • Placing messages Complete • Accounting messages August 2007 • Placing Implementation Guide • Complete for current work load Complete • Updated for London Endorsements Q3 2007 • Accounting Implementation Guide • EBOT August 2007 • ELPAN2 August 2007 • DRI guide • Enhanced Final Draft • Forums • IT Club Ongoing • Solution Providers Forum Ongoing

  19. Other news… • Beginning discussion of reform agenda for 2008 with Associations. • Welcome input • Email steve.hulm@marketreform.co.uk • Steve Hulm…the return • Next forum Thursday 27th September • Want to talk…? • General reform updates/discussions • Specific topics – MRC, IMR etc • Email mrpo@marketreform.co.uk to arrange Page 19

  20. Peter Dalton – Business Sponsor Charles Lee – Project Manager

  21. How did we reach 100%?

  22. Project team to focus claims handlers • All brokers trained (roles changed) • Buy in from team who understand the benefits • Excellent IT department (no major IT issues encountered) • Close connection with receptive underwriters and market associations • Collaboration with like minded broking houses • Ethos is “we use ECF” • Monitoring our own failings (and reasons) was vital

  23. July 2007 ECF

  24. Questions?

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