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