ACORD Solution Providers Forum

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ACORD Solution Providers Forum

• John Harvie, MRPO
• 01th February 2007

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Contents

• Background to market reform building on the
  success of 2006
• The MRG role and principles
• London Market Reform Vision
• Work plan 2007 and subsequent phases
• Contacts for further information

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Background to market reform building on the
success of 2006

• The market has made significant reform in a
  number of key areas
• Improved, measured Contract Certainty
• Introduction of Market Reform Slip, building on
  the LMP slip
• Improvement in contract documentation quality
• Development of electronic support for the placing
  process
• Electronic claims introduced using Insurers
  Market Repository
• Electronic AS submissions using Insurers Market
  Repository
• The discussion is no longer about whether we
  should undertake further reform this is a given.
• The focus is what firms are doing now and what
  must do next. Further increasing momentum is key.

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The Market Reform Group (MRG) role and principles

• ROLE
• MRG is the senior market-wide body responsible
  for overseeing and driving process reform in the
  London Market.
• Its principal responsibilities are to-
• Set vision, strategy and timetable for the
  market.
• Resolve difficult cross market issues.
• Communicate influence the environment and
  disseminate information.
• Set up governance for initiatives.
• MRG firms lead by example, form lead implementer
  partnerships and encourage laggards.
• Ensure that initiatives are consistent with each
  other and with vision.
• Measure progress on individual projects and whole
  reform programme.
• Agree standards and where necessary produce them.
• Make sure that resources are in place
• Project Managers, analysts, experts
• Resolve funding for agreed initiatives
• MRG will typically focus on and drive 2-3 key
  initiatives

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The Market Reform Group (MRG) role and principles
PRINCIPLES In overseeing and driving reform, MRG
will

• Work with the grain of the market
• Grasp the difficult issues
• Not be proprietorial
• Represent the London Market on reform
• Focus on cross-market co-ordination, not
  centralised delivery

• Take incremental steps momentum is paramount and
  better than perfection
• Actively communicate with the market
• Reduce Londonisms
• Champion the formation and adoption of process
  standards
• Use the lead implementer model

• Use measurement to drive performance improvement

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London Market Reform Vision

• To be the market of choice

• This means
• Maximising electronic processing across the
  market
• - All risk submissions sent electronically
  wholly electronic trading for some simple risks
  with no manual intervention face-to-face when
  required for large and complex risks
• - All claims processed and agreed electronically
  face-to-face negotiation only when required for
  complex claims
• - All accounting and settlement of risks
  performed electronically
• Using
• - ACORD international standards for data messages
  and documents
• - Common processes
• - Agreed service levels

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London Market Reform Vision
To be the market of choice

• Resulting in the following benefits
• First class client service
• Early receipt of high quality contracts
• Rapid claims processing and communication with
  clients
• Rapid movement of premium and claim monies
• Right first time processing
• Increased efficiency with lower operational cost
• Lower operational risk
• Flexibility to support bespoke business

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Steps towards the vision
PLACING
2007 Actions for Market Firms
Subsequent phases

• Embed Contract Certainty as business as usual
• Improve contract documentation quality
• Substantially reduce Legacy policies
• Develop Market Reform Slip and the Global Placing
  Document (ACORD Slip)
• Roll-out electronic placing message (ACORD phase
  1)
• Develop standardised documentation and electronic
  messaging for endorsements
• Develop electronic policy documentation

• Implement ACORD messages to support the entire
  placing process
• Increase segmentation of processing between
  simple and more complex risks
• Complete roll-out of standardised documentation
• Further enhancement of electronic tools to
  support contract quality
• Implement and measure agreed service levels

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Steps towards the vision
CLAIMS
2007 Actions for Market Firms
Subsequent phases

• Rapid increase in use of Insurers Market
  Repository (IMR) for all new claims
• Enhance IMR to cover all types of business

• Implement ACORD messages for all business
• Implement and measure agreed service levels

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Steps towards the vision
ACCOUNTING SETTLEMENT
2007 Actions for Market Firms
Subsequent phases

• Rapid increase in electronic submissions by
  brokers using IMR
• Enhance IMR to cover all types of business aiding
  take-up
• Increase right first time submissions by
  brokers
• Increase use of delinking to speed up movement
  of money
• Introduce ACORD messages between brokers and
  carriers/bureau

• Implement ACORD messages for all business
• Implement and measure agreed service levels for
  movement of money

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Steps towards the vision
2007 Actions for Market Firms
Subsequent phases

• PLACING
• Embed Contract Certainty as business as usual
• Improve contract documentation quality
• Substantially reduce Legacy policies
• Develop Market Reform Slip and the Global Placing
  Document (ACORD Slip)
• Roll-out electronic placing message (ACORD phase
  1)
• Develop standardised documentation and electronic
  messaging for endorsements
• Develop electronic policy documentation

• Implement ACORD messages to support the entire
  placing process
• Increase segmentation of processing between
  simple and more complex risks
• Complete roll-out of standardised documentation
• Further enhancement of electronic tools to
  support contract quality
• Implement and measure agreed service levels

• CLAIMS
• Rapid increase in use of Insurers Market
  Repository (IMR) for all new claims
• Enhance IMR to cover all types of business

• Implement ACORD messages for all business
• Implement and measure agreed service levels

• ACCOUNTING SETTLEMENT
• Rapid increase in electronic submissions by
  brokers using IMR
• Enhance IMR to cover all types of business aiding
  take-up
• Increase right first time submissions by
  brokers
• Increase use of delinking to speed up movement
  of money
• Introduce ACORD messages between brokers and
  carriers/bureau

• Implement ACORD messages for all business
• Implement and measure agreed service levels for
  movement of money

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Market Reform initiatives
Placing
Target
Timescale
Claims
AS
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Market Reform initiatives (continued)
Placing
Target
Timescale
AS
Supporting
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The Market Reform Laminate

• This information is presented in the Market
  Reform Laminate
• This is available at www.marketreform.co.uk

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Contacts for further information

• Further information can be found on the Market
  Reform Programme Office (MRPO) website
• www.marketreform.co.uk
• Contact your Association..