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LMG Forum July 2010

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  1. LMG ForumJuly 2010 Christopher Croft, LMGSBarnabas Hurst-Bannister, LMG

  2. Agenda • Presentation • Modernisation this month • A year in the Chair

  3. Caption competition

  4. Chairman Personality

  5. FWWS - eAccounts • Release 1B targeted for Q4 2010 • Release 2 targeted for Q3 2011

  6. 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

  7. 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

  8. RFT – some progress already

  9. Endorsements • Market testing complete • Firms moving onto business scenario testing • Interchange agreement work ongoing • Discussion on further roll out at July LMG

  10. 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

  11. 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!

  12. Upcoming events • Insurance Day Technology Summit – October 6th • Xchanging conference – November 25th

  13. Questions?

  14. Ask the Audience?

  15. Ask the Audience member to explain himself

  16. A year in the Chair Barnabas Hurst-BannisterChairman, London Market Group

  17. One year ago…

  18. A new Chairman set sail…

  19. At the forum FWWS complete 2010

  20. At the forum

  21. At the forum

  22. 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?

  23. 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

  24. 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

  25. 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…

  26. 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…

  27. 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

  28. 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

  29. 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

  30. Award winning

  31. 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…

  32. 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

  33. What next…? • Governance is now strong but overly complex? • Rationalise? • Close committees down???

  34. Current governance

  35. Future processing…

  36. 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…

  37. Sensitive to possible overload • FWWS vs Future Process Model • Solvency II vs Modernisation • Always the same people involved

  38. 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

  39. We’ve come a long way, but there is some way yet to go…

  40. A year in the Chair