Market Reform Forum What

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Market Reform ForumWhats new this month?
Market Reform in the London Company Community
Market Reform Office

• Christopher Croft, MRO
• John Hobbs, Director of Market Services, IUA
• 27th March 2008

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Update across the reform agenda

• Placing
• Endorsements
• AS and ECF

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Placing

• EPlacing
• Benfield live with two-way ACORD messaging with
  Brit, Catlin and Kiln for 1 Apr 08 renewals.
• There are 4 brokers and 8 carriers placing live
  business using ACORD messages, and a further 6
  brokers and 32 carriers currently investigating
  options or implementing ACORD Direct Messaging.
• Lloyds are developing a Data Exchange facility
  next months forum.
• Measurement of live electronic placement activity
  is under way.

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Placing

• MRC for binders and lineslips
• Published
• Implementation date 1st July
• Public session 3rd April in Willis Auditorium
• Electronic bureau policies
• 14 February down from 22 in January
• Disproportionate amount of reinsurance business
  in 1/1 renewals?

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Endorsements current status
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MRCE

• Documentation standard (MRCE)
• London standard for contract changes from 1 April
• So no more honeycombs
• FAQs on the website
• To do ensure it is adopted in your (broking)
  firm. Underwriters make a fuss if you see old
  style

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e-MRCE focus is e-mail

• Just do it
• Email widely used now for contract changes on
  international business
• Extend use of email to London Market business
• Keep it simple
• No new technology required
• So no need to wait for others to justify
  investment
• Easy bridgehead into electronic support for
  placing
• A supporting act to ACORD messaging
• Email use kicks off the sort of business changes
  required for electronic processing via ACORD
  messages (workflow)

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e-MRCE update

• You will hear from your Association
• Respond with requested info by 15th April
• Get measuring
• FAQs out next week
• Use of email security/legality
• Evidence of cover
• Central directory of emails? Watch this space

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AS current status

• Insurers Market Repository (IMR) use
• 76 of original premium
• 48 of APs and RPs
• No van service for in scope OPs from 1 April
• See published details on market reform website
• No van service for APs RPs from 31 December
• AS repository user guide published
• ACORD messages single standard incorporating
  bureau and non-bureau
• E-Accounting project being led by Richard Lester
  (Guy Carp)
• Move from scanned paper LPAN to structured data
• Delinking
• c70 guidance forthcoming
• PPWP recommendation

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Claims

• Lloyds 100 new in-scope end Q1
• 90 February
• IUA take up end Q3 100 new in-scope. Data
  from April.
• Service contract in negotiation
• Hardware audit reporting soon
• Service targets LMRB own
• Measure first, then think about targets
• Legacy claims
• End Q1 review of pilots recommendation to MRG
• ECF Flag being built May release
• Work being done on data provision

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IMR questions

• Barnabas H-B open letterProgress on electronic
  claims and AS has been very encouraging
• Further system enhancements will be delivered in
  May
• System reliability is a top priority
• Repository hardware upgrades will call for
  necessary investment
• ECF will be in use for some years it needs
  further improvement and that will cost money
• Planning and delivering the next generation of
  claims infrastructure will be a major strategic
  effort
• Market firms have ready access to updates on ECF
  and AS issues please take advantage of these.

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Other stuff you should know

• IT Club on Quality Assurance in the Placing
  Process
• Steve Hulm, Market Reform Office
• Roger Oldham, HSBC Insurance Brokers
• Geoff Maskell, Exari
• Emma Woolley, Canopius