kinnect 2005 market reform forum 31 march 2005. the vision simplified, harmonised business processes...

Kinnect 2005

Market Reform Forum

31 March 2005

The vision

• Simplified, harmonised business processes

• Multiple exchange of standardised data

• Structured electronic messages

• Community platforms› Minimising interfacing costs

› Enforce discipline

• Required across full value chain› Kinnect is the solution for placing

Kinnect today

• Placing› Agreed business process

› Data transfer from brokers to underwriters

• Structured data and attachments

› Browser and web services connectivity

• North American property risks› 50-60 new risks per month

• 2 Brokers – Marsh & Willis

• 8 Managing agents Ace Amlin Ascot

Beazley Hiscox Liberty

Markel Wellington

Kinnect benefits

• Increased efficiency through electronic data transfer

• Greater transparency of process

• Independent record of all activity contributing to negotiation and amendment of risk

• Faster data exchange with reduced errors and reworking

• Faster access to accurate data and improved risk and capital management

• Foster improved contract certainty› document disclosures

› wordings review

• Greater ease of access to Lloyd’s and London market through cost effective placing process

Risk submission process

Carrier/Lead UW

CreateSubmission

Broker loadsrisk details and sendsto market

CreateSubmission

Broker loadsrisk details and sendsto market

CreateOffer

Underwriterreviews slipand responds

CreateOffer

Underwriterreviews slipand responds

SelectOffer

Brokerselects lead

SelectOffer

Brokerselects lead

Placing Broker

ReceiveNotification

Underwriterreceives notification of selected offer

ReceiveNotification

Underwriterreceives notification of selected offer

Follow UWOffers line

Subscribeto Offer

Follow UWOffers line

Subscribeto Offer

Distribute toFollows

Broker Sends to following markets

Distribute toFollows

Broker Sends to following markets

Accept Terms

Accept Terms

Lead accepts or rejects

Follow UWAccepts or rejects

Firm Up Markets

Brokersends toall markets

Firm Up Markets

Brokersends toall markets

Brokersigns downand confirmssigned Lines

Bind Risk

Brokersigns downand confirmssigned Lines

Bind Risk

NegotiateNegotiate

NegotiateNegotiate

Over 100 data items transferred from broker to underwriter during processOver 100 data items transferred from broker to underwriter during process

2005 objectives

Kinnect’s high level objectives for 2005 are:

• Delivery of functionality to support the full risk lifecycle (placement, endorsement, renewal);

• Material customer adoption of Kinnect as a core business process;

• Delivery of viable financial model and new tariff; and

• Broadening the range of risk classes and agreeing a forward programme for future expansion through addition of further risk classes.

Milestones summary

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

Releases 5.2.3 6.26.1

Current

5.2

Corporate Tariff changesComplete corporate restructuring

FSA authorisation

Review financial model

Risk classes TerrorismNorth American property

International property

Decision on sequence of future risk classes

Non-property risk class

Adoption Stage 1, 2, 3 process

One-way full submission process

Two-way endorsement processing

Two-way full submission

US Decision on US development options

US prototype available

US live for ILG

Enhanced Disaster Recovery

Technology Production version of Gateway

Further release to be planned

Complete technology review

US ILG commitments

Agreement on new tariff structure

Broker webservices

Milestones (1)

Functionality and adoption

• Enhanced placing functionality May

• Slip creation through Kinnect June› Slip quality data earlier, through to signed lines

• Endorsement functionality Sept’

• On-line distribution and agreement of Oct’

endorsements

Milestones (2)

Risk class expansion

• Live in Kinnect› North American property Now

› Terrorism 1 June

› International property 1 Nov

• Priority risk classes for 2006› Professional indemnity

› Property Cat XL

› NM General liability

› General aviation

› Marine – Hull or Cargo?

Milestones (3)

• Improved web services› Web services allow customers to maximise benefits

interface with own systems

› Standardised UW web services

› Agreed development for broker web services

› hp Commercial Insurance Gateway

• to exchange ACORD compliant web services messages without bespoke gateway development

• Kinnect and other insurance market infrastructure

Kinnect Board

• User governance› Development of Kinnect to reduce cost and risk in

market

› Operating within strategic guidelines and budget set by Lloyd’s

• Broad membership› Two senior brokers

• from Marsh & Willis

› Five senior underwriters

• from Ace, Amlin, Beazley, Chaucer & Wellington

› Two independents

• including representative from Council

› Lloyd’s

Questions?

toby.davies@kinnect.com