1 / 10

Market Reform Forum

Market Reform Forum. Update 24 February 2005. Andy Brookes. Objective: up to speed in half an hour……. Overall approach, end vision Contract Certainty LMP slips Documentation, early implementations Kinnect Electronic infrastructure Accounting and Settlement

muniya
Télécharger la présentation

Market Reform Forum

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Reform Forum Update 24 February 2005 Andy Brookes

  2. Objective: up to speed in half an hour…… • Overall approach, end vision • Contract Certainty • LMP slips • Documentation, early implementations • Kinnect • Electronic infrastructure • Accounting and Settlement • Electronic Claims Files – today’s special topic

  3. Vision for market processes • Exchange of data and progress of transaction is captured in a collaborative electronic system • Placing process built into electronic system • Placing data to international standards • Standard slip generated by electronic system. Ditto, the policy. slip/policy distinction blurs • Policy based on standard wordings; changes tracked and audited electronically. Or auditable bespoke wording created. • Checking in real time • Placing systems retain the data and audit trail • Claims: international standard messages for data and claims management. Repositories for simultaneous access • Accounting and settlement: ditto

  4. Approach To support each stage in the life cycle of a contract: • simplified, harmonised business process • standardised data • structured electronic messages • community infrastructure platforms - minimise interfacing costs and enforce discipline Why? Drive changes – including behaviour - within firms. Hence - reduce risk - reduce cost - make process transparent to market users so that they can measure and manage

  5. Contract certainty: overview • Governance • Market Reform Group (MRG) with new members • Market Reform Group executive (= Project Board) • BPR/LMP drive – plan to MRG by April • LMP slips – compliance and development • Policy checking by Xchanging - publish checks, drive compliance • Binders – model wordings • Slip “fully claused” • XIS checks and data – (old) rejection rates; top five reasons • Contract Certainty Implementation Group • Get wordings agreed during bind • Get checking done during bind • Kinnect • Consistent with all this – but reduces compliance cost • Other: Market Wordings Database; attributes of CC - measurement

  6. Contract certainty: LMP Slips • January BSA headline (another sneak preview): 93% • Continue to check 25% of Lloyd’s slips in 2005; IUA? • LMP slip a year on – publish once agreed, March? (not Feb) • Implementation guide – brokers signing-off; to be published • Thematic work • Claims guidance after 2005 Lloyd’s claims scheme • FSA headings • LMP slips for binders • Checked 75 in January; BSA 94% compliance • Still high XIS rejection rate • ACORD GPD published • Marine and reinsurance sub group formed

  7. Contract certainty: documentation • 300+ risks in Q2 • Xchanging check earlier • Policies produced earlier • Documentation available • Brokers lined up; underwriters being briefed • FI or D&O first? • Producing timetable of firms’ participation • Legacy : information collection; priorities (Q2)

  8. How Kinnect fits into reform • Reform is about • Harmonised process • Structured data (ACORD international standards) • Embedded in electronic messaging • Community infrastructure platforms • Kinnect provides the front office layer - and offers high quality data to subsequent processes – A&S, policy production, claims • LMP slip “enforces” a structured output of placing • Do it properly through Kinnect • Checking enforces Lloyd’s standards (contract certainty, regulatory, tax – but post placing) • Do it during placing through Kinnect

  9. Kinnect • Continuous use by Marsh and Willis over renewal season, passing risks to markets • “Slip” sponsored by Marsh and Willis to increase carrier use • Hiscox live and Liberty Syndicates in implementation (8 MAs) • 1 June 2005 – move to next stage of use – full submission process with brokers recording underwriter responses • Release in April (demo then; properly live in May) • Includes terrorism • Customers developing adoption plans (= usage for real) • Sep 2005 – endorsement functionality roll out • New risk classes • Terrorism available 1 June • International property available 1 November • Further roll out sequence decided Q2 (earlier)

  10. Accounting & Settlement • Detailed business design published in December • Live issues • Xchanging costs (£10.4mn) being reviewed • Technical and data information • Accounting splits • Migration (legacy and crossover): complete for premium • Testing – first convoy on behalf of market; subsequent convoys • MRIB and Project Board working on implementation timetable • Had aimed to publish in Q1, will be Q2 - greater certainty required on costs • Sequence and timetable for deliveries • Convoy one membership • Commercial framework

More Related