electronic placing in the london market july 2007 rob gillies lloyds market association
TRANSCRIPT
Electronic Placing in the London Market
July 2007
Rob GilliesLloyd’s Market Association
What is electronic placing?
• Data and negotiation
What is electronic placing?
MRG Vision 2007-2009: All risks submissions sent electronically; wholly electronic trading for some simple risks with no manual intervention; face-to-face when required for large and complex risks
What is electronic placing?
Face to Face
Complex
Face to Face, Telephone, Electronic
Moderate
Electronic
Simple
Negotiation
Data Exchange
• Improved regulatory compliance
Why electronic placing?
= Improved client service and increased shareholder return
• Reduced costs
• Increased operational efficiency
• Strategic business opportunities
Why electronic placing?
• What’s in it for me
• The organisational perspective – the personal perspective
• Relevance of benefits reflects organisation’s business model
• Benefits model
What has been achieved so far?
• Development of the Market Reform Contract to meet ACORD standards
• Review and standardisation of the endorsement process
• Development of a Wordings Repository
• Development of the data sets and processes for EP to meet ACORD standards
What has been achieved so far?
• Successful piloting of peer-to-peer placement by five brokers and six managing agents
• The use of electronic placing standards by Aon, Marsh, Guy Carpenter and other organisations for inter-office routing of risk information
• The electronic placement of 98% of Benfield’s Japanese renewals for second quarter 2007
• Announcement of Aon’s intention to use the Ri3K electronic placing system to deliver all Treaty business. They are also looking to expand scope
• Adoption of RI3K by Lloyd’s China
• Adoption by Aspen Re of electronic messaging standards
• Active involvement in or serious expression of interest in electronic placing by total of fifteen managing agents, three insurance companies and six brokers
Project Scope
• to create clarity in the market about the benefits and implications of, and options for, the adoption of EP
• to extend significantly the use of EP amongst organisations in the London insurance market.
Project runs to end of Q2 2008
Objectives
• This is a London market business issue
Project Scope
• Benefits based business case for adoption
• Agnostic towards technology
• Adoption of ACORD standards, implemented consistently
• All business in scope
• Briefing pack
Resources
• Benefits model
• Landscape analysis
• Promotion and support
• Implementation guides and groups
• The technology exists and is available
• Entry costs are affordable
Technology
www.the-lma.com
Peter Holdstock Consultant020 7327 8383
Rob Gillies Head of Market Reform Policy
020 7327 8377
Contacts
Please leave a business card to be added to our distribution list
Questions
Electronic Placing in the London Market
July 2007
Rob GilliesLloyd’s Market Association