With

London Market Group

The Future Process Model – where are we headed?

Tim CarrollLMG Forum - 20th October 2010

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Launching LMP in 1998

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The drivers…

•Efficiency to keep London competitive

•Optimising central services

•Choice for insurers

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Progress thus far…

• Workshops held with Heads of Associations and Lloyd’s

• 2009 Future Process Working Group established.

– Agreed a set of principles that should underpin any future model

– Recommended to the LMG that the proposed future process is workable and warrants much more detailed design

• An LMG-sponsored project has been initiated to deliver:

– A robust London Market process model, expressed in sufficient detail that it can be adopted and implemented by the market.

– A recommended transition/implementation plan; likely to identify a two stage approach, with a new model for 100% written business as the first implementation, followed by subscription business

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Governance structure

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The starting point

•Finished what we had started

•Endorsements roll out & placing

•Claims transformation project

•The Exchange

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Key themes

• Future processes all supported by standard (ACORD) messages

• Information captured at its earliest point and reused throughout downstream processes

– Removal of rekeying of information

• Continued reliance on some central services for subscription business

• Transparency, simplicity, clarity across processes (for practitioners & customers)

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Placing

• Data exchanged electronically

– Moving to far richer ACORD messages over time

– Separation of pre and post bind processes so that data capture not onerous during negotiation

• Early data capture to remove rekeying in downstream processes

• Face-to-face broking continues but might be replaced eventually for straight-forward, non-complex placements

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Accounting & Settlement

• Accounting and settlement process separate from reporting

• Accounting entries and instruction to settle achieved electronically (ACORD)

• Alignment and consistency across the process

• Fewer queries and greater automation

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Claims Working Group

• A central Claims Platform

– Ability to integrate with back-office systems

• Flexible process to cater for future claims protocols/schemes

• Claims agreement parties confirmed during placing risk

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Facilities & Binders Group

• Placing of facilities supported electronically

• Standard bordereaux format and information (ACORD)

• Potential for “real-time” data provision from coverholders

• “Outside of authority” placing and claims to follow open-market processes

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Coming soon

• Consultation document

• Proposals on non-optional central services

• Pragmatic, deliverable model

• Basis for market debate

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Questions?

With

London Market Group

The Future Process Model – where are we headed?

Tim CarrollLMG Forum - 20th October 2010