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LMG Forum July 2010. Christopher Croft, LMGS Barnabas Hurst-Bannister, LMG. Agenda. Presentation Modernisation this month A year in the Chair. Caption competition. Chairman Personality. FWWS - eAccounts. Release 1B targeted for Q4 2010 Release 2 targeted for Q3 2011. FWWS – ECF2.
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LMG ForumJuly 2010 Christopher Croft, LMGSBarnabas Hurst-Bannister, LMG
Agenda • Presentation • Modernisation this month • A year in the Chair
FWWS - eAccounts • Release 1B targeted for Q4 2010 • Release 2 targeted for Q3 2011
FWWS – ECF2 • Some issues with MAT • These have the potential to affect the go live date • XIS has been asked to put forward any proposed changes to the ECF2 Management Group • Full details will be communicated to the market as soon as possible when they are clear
Right first time • Key Considerations paper to be published this week • LIIBA & LMGS to visit the top 10 brokers by volume • The Stage One Premium Checks have been reviewed by Lloyd's and Xchanging. • The Tracker Codes are now live and will start filtering down in the RFT reports brokers receive. • Project board reviewing targets and will make recommendation to LMG
Endorsements • Market testing complete • Firms moving onto business scenario testing • Interchange agreement work ongoing • Discussion on further roll out at July LMG
The Exchange • The Message Exchange Ltd to be incorporated - equal representation from all four constituencies • IUA • LIIBA • Lloyd’s • LMA • Owned by the market for the benefit of the market • Transfer of contract with IBM
Non bureau business • Modernisation aims for a single approach • Non bureau could be around 10% of our market • We should seek synergies where possible • Working party to be formed!
Upcoming events • Insurance Day Technology Summit – October 6th • Xchanging conference – November 25th
A year in the Chair Barnabas Hurst-BannisterChairman, London Market Group
At the forum FWWS complete 2010
So, how have we done…? • We have not, yet, delivered eAccounts • ECF2 is not scheduled to go live until September • FWWS will stretch at least into 2011 and probably beyond • Why?
FWWS 2009 - 10 • We have made some mistakes • Underestimated the complexity of eAccounts • FWWS governance was inappropriate • Market was not an effective customer to XIS • But we have learnt • Resolved governance problems
FWWS 2009 - 10 • We have made some mistakes • Underestimated the complexity of eAccounts • FWWS governance was inappropriate • Market was not an effective customer to XIS • But we have learnt • Resolved governance problems • Moorhouse Consulting • Clarity of responsibility on XIS side • Market procurement experts • Robust specifications, fully tested quotations, solid contractual footing
FWWS 2010 • Finish What We’ve Started • Fully costed • Fully justified – eg eAccounts CBA • Appropriately contracted for – fixed price • Effective governance • Sounds simple but… • Standard approach in a single firm • But we are 250 separate firms • And we don’t like paying for stuff…
Progress elsewhere… • Class of business pilot a glint in the eye in July 2009 • Now • 100% of Managing Agents • 26 Companies • 80% by premium volume of Brokers • Commitment to deliver • Learnt our lessons • Governance & Planning • Realism • Marine eEndorsements from 1st September for the Vanguard and 1st October for the…
Again, we have started so we’ll finish… • Discussions beginning on next classes of business once we have learnt the pilot lessons • Wider roll out to all endorsements by the end of 2011 • Phased by classes • Wider placing road map also up for debate • Likely to include a similar class of business approach • Binder declarations • More coherent links to premium settlement and claims
And also… • Preliminary strategy discussions have become Future Processing Model • Looking at what we do not just how we do it • Do all of the elements of our transaction join up? • What central services do we continue to require? • Strong governance & project management • Early thoughts at LMG in September and here in October
Where are we…? • In decent shape • Strong consensus behind the current agenda • FFWS lessons absorbed and strengthened our approach • Bite sized chunks remains the way to go • Endorsements pilot will face many hurdles but we have everything in our armoury needed for it to be a success • Future Processing model will provide as much vision as this market can take and will provide a roadmap that will help firms plan their investment
Some truths remain self evident • Consensus is key • Manageable stages • Pilot, prove, adjust, roll out • Learn in the crucible of live business • Technology supports business - it does not trade…
Straight Through Processing (STP) in the London Market What STP is not… • The removal of manual intervention from the London process • Business is too complex to automate fully • Auto rating and other techniques have a place but cannot replace the underwriter for many of our risks What STP is… • The removal of manual effort where it does not add anything • Capture data once, use it many times throughout the transaction • Capture data as close to source as possible • Join up the transaction such that data that should be captured at placing is not rediscovered when it comes to accounting or claims • Increased auditability and, potentially, quality of data • Know where it came from and what you have done with it since • Bedrock of Solvency II compliance
What next…? • Governance is now strong but overly complex? • Rationalise? • Close committees down???
What next…? • Continue to ensure modernisation is inclusive • Not just G6 & big three • Something there for everyone • Proceed at a pace that strikes the right balance • Constant realism…
Sensitive to possible overload • FWWS vs Future Process Model • Solvency II vs Modernisation • Always the same people involved
Measurement must be king • We have done the “bleeding obvious” • Must get better at CBA • Relies on firms to store and share relevant data • LMGS & LIIBA working on it
