1 / 11

Electronic Market Reform Contract Endorsements Sponsors and Project Managers - Workshop

Electronic Market Reform Contract Endorsements Sponsors and Project Managers - Workshop. 28 th January 2009. Introduction & Background Bi-Lateral agreements Current Status & Targets Broker & Insurer Responses Workshop Conclusion. John Muir Steve Hulm ALL. Agenda.

overton
Download Presentation

Electronic Market Reform Contract Endorsements Sponsors and Project Managers - Workshop

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Electronic Market Reform Contract EndorsementsSponsors and Project Managers - Workshop 28th January 2009

  2. Introduction & Background Bi-Lateral agreements Current Status & Targets Broker & Insurer Responses Workshop Conclusion John Muir Steve Hulm ALL Agenda Page 1

  3. Reforming endorsements: a big prize • For non-complex, non-urgent, low value to client but high admin cost • Approx ½ million endorsements p.a. • Faster agreement process • Frees brokers and underwriters to do something more useful • Agreed endorsement is basis of client documentation • Improved contract certainty • Saves broker rework • Documentation to client quicker • Bridgehead into electronic trading Page 2

  4. e-MRCE summary: focus is email • “Keep it simple” • Email is sufficient – new technology is not a pre-requisite • Use structured data messaging when you have it • Certainly non-complex, but don’t be afraid to go further • “Just do it” • Email widely used for non-London Market business already • Brokers: extend use of email to your London Market business particularly for non-complex, non-urgent, endorsements • Insurers: respond using email Page 3

  5. Email Bi-Lateral Agreements • Whereby a broking team and underwriting team agree to the email submission of ALL endorsements, within a class of business • Negotiation and agreement can then be via email, or face to face, as appropriate • We are developing a “protocol” regarding how this would work • We will then be seeking volunteers to participate Page 4

  6. Electronic endorsements - broker submissions 3000 2500 2000 1500 1000 500 0 Apr May Jun Jul Aug Sep Oct Nov Dec Broker electronic submissions Monthly Interpolated target Q3 target Current Status and Targets • Data received from approx. 20 insurers and 20 brokers (including Aon, Marsh and Willis) each month • Volume has increased significantly … … but below target. • Limiting factor = acceptance by front-line brokers and underwriters? Page 5

  7. Selection of Broker Responses • e-MRCE provides us with clear benefit … • … particularly where it means that technicians can communicate directly with the market (including from outside London) • We’ve had endorsements agreed in under 5 minutes • It brings the process for London & Overseas markets into line • Follow agreements and notifications can be executed in parallel • Front-line brokers may not be keen • Individual underwriters may not be keen • Measurement a chore • Some prefer to await a structured messaging solution Page 6

  8. Selection of Insurer Responses • Our doors are open to brokers that want to operate in this way • Brings London process into line with that adopted elsewhere in the group • Maintains a record of the agreement • Endorsements via email can be integrated into our workflow systems – and hence visible on underwriters’ desktops • Provides a stepping stone (& benefits case) towards full electronic support for placing (& hence reduced re-keying) • Volumes are currently low; measurement a chore • Supports endorsement agreement by underwriting assistants • Non-standard submissions hinder take-up Page 7

  9. Workshop Questions – by show of hands • Is e-MRCE providing benefit today? • Does email act as a stepping stone to support for placing via structured messaging? • Addressing the cultural issues? • Providing experience and the basis for a benefits case? • Do you think that your organisation would participate in Bi-Lateral agreements? • For 100% of endorsements, within specific classes/teams • Question(s) from the floor? Page 8

  10. Workshop Questions – breakout groups For INSURER representatives: • How to promote front-line underwriter acceptance? For BROKER representatives: • How to ensure (broker) adherence to agreed e-MRCE standard? Page 9

  11. Conclusion • Thank you for coming … and for participating • Watch out the announcement of bi-lateral arrangements • I will be meeting with as many of you as possible over the next few months to gain your input … in the meantime • We are very open to individual suggestions and comments regarding the issues raised today Email: steve.hulm@marketreform.co.uk Page 10

More Related