23/04/20141 e-placement support where are we and whats next? 19 august 2009 copyright watertrace...
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10/04/23 1
e-Placement Support
Where are we and what’s next?
19 August 2009
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10/04/23 2
2009 Survey demographics
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Quantitative and Qualitative analysis was conducted;
32 market firms were representedAreas of interest
•Commitment to ePlacing support•Strategy and process•Value and benefits•Leadership•Drivers of the change•Progress blocks
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ePlacing is becoming the norm...?
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Tool use is up for both Insurance and Reinsurance.
Is this sufficient evidence to suggest it’s the norm…..?
Less than 50% of underwriters agree that ePlacing will become the norm.
Is this an initiative that only the brokers want?
Is there nothing in it for underwriters?
ePlacing is not the norm today, and tomorrow?…
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The business case for ePlacing is widely accepted...?
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Brokers perceived greater benefits from ePlacing support use than underwriters;
Fewer than 40% of underwriters note considerable benefit at any stage;
The business case is questionable from an underwriting perspective.
Rather than being accepted, how do we define the business case?
10/04/23 5
Widespread agreement that ePlacing is the panacea...?
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Both brokers and underwriters believe the benefits of ePlacing support will be significant in the future: 81% of brokers and 49% of underwriters see significant future benefit for their firm
BUT, what seismic change will need to occur to make this happen when benefits are limited at present? Is the market capable / ready for a change?
Is it merely wishful thinking that the future will be better?
10/04/23 6
The Management Divide
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Und
erw
riter
Brok
erM
anag
emen
t Reduced risk through better information
Higher revenue as greater volumes possible with streamlined processes
More from the practitioner “Pound of Flesh”
Is it possible that increased volumes could bring benefit to practitioners too?
Is there a divide at all?
10/04/23 7
There is a perception difference
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Business case for firms
Managers driving
Quant results don’t reconcile with focus group discussions
Practitioners on board?
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Aon mandates Brokers use RI3K
Aon mandates Brokers use RI3K
Q1 2008
Market Reluctant on placing
support
Market Reluctant on placing
support
Q2 2008
LMA publishes Business Process
Protocols
LMA publishes Business Process
ProtocolsQ1 2009Vendor alignment &
market use increases
Vendor alignment & market use increases
Q3 2009
Lloyd’s Exchange & Ruschlikon
pilots complete
Lloyd’s Exchange & Ruschlikon
pilots complete
Q2 2010 3 major brokers and most of the market transacting at least
some business using standard platforms
3 major brokers and most of the market transacting at least
some business using standard platforms
Q3 2010
Rationalisation &
standardisation of market
system solutions
Rationalisation &
standardisation of market
system solutions
Q2 2011
London Market seen as standard for a trading
hub
London Market seen as standard for a trading
hubQ4 2011
70% of all market transactions being
supported by electronic means
70% of all market transactions being
supported by electronic means
All market systems have integrated
solutions
All market systems have integrated
solutions
Q2 2012
All trades supported by electronic means. STP for non-complex
business not requiring f-2-f
All trades supported by electronic means. STP for non-complex
business not requiring f-2-f
Q1 2013
Lloyd’s Exchange
Pilot commenc
es
Lloyd’s Exchange
Pilot commenc
es
Ruschlikon pilot
commences
Ruschlikon pilot
commences
Q2 2009
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Questions to be answered
• What’s the vision?– For the firms– For practitioners– For management
• Who’s leading, driving, influencing - roles?– Lloyd’s / LIIBA / IUA / LMA / MRG / larger firms / suppliers
• Is the business case defined, clear, articulated, in consensus?
• Roadmap agreed, milestones communicated?
Copyright Watertrace Management Consulting. All rights reserved
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10/04/23 Copyright Watertrace Management Consulting. All rights reserved