market reform group market reform: are we doing enough? dane douetil, cbe chair, market reform group...
TRANSCRIPT
Market Reform Group
Market Reform: Are we doing enough?
Dane Douetil, CBE Chair, Market Reform Group18 October 2007
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Slip creation guidelines providing certain and consistent placing documentation
MRC - complete
Clear, unambiguous contracts agreed at formation
Improving the speed of premium processing - delinked premiums
IMR in useDelinking 57% (Aug)
Contract Certainty - complete
Early delivery of single insurance document to client
Contract Certainty - complete
PLACING & SETTLEMENT
What have we achieved so far?
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Contract Certainty Statistics
Broker Contract Certainty Achievement
Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007
65%
74%
95%
91%
94%
90%
85%
95%
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Contract Certainty Statistics
Broker Evidence of Contract Achievement
Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007
65%
77%
91%
86%
92%
84%
80%
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Endorsements
Claims
IMR in useElectronic storing of documents allowing simultaneous access
Pilot stage complete Project being implemented
Improved speed of endorsement processing
What have we achieved so far?
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IMR Usage
A&S OP only
36%35%
28%24%
21%
22%
19%19%17%
ECF
10%
30%
16%
21%
14%
11%
40%
45%
6%
Jan Feb Mar Apr May Jun Jul Aug Sep
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Why do it?
• First class client service
• Early receipt of high quality contracts
• Rapid claims processing and communication with clients
• Rapid movement of premium and claim monies
• ‘Right first time’ processing
• Increased efficiency with lower operational cost
• Lower operational risk
• Flexibility to support bespoke business
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Where are we going?
• MRG vision
All risk submissions sent electronically
All claims processed and agreed electronically
All accounting and settlement of risks performed electronically
– London to be the market of choice
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What does the future hold?
• Further change is a given not an option
– To maintain London’s competitiveness with other insurance centres
– To maintain insurance industry’s competitiveness with increasingly sophisticated alternatives
• Embrace the new world which is and should be transparent and auditable
– Don’t re-employ bad practice into electronic format
• Build on the successes of the last 3 years and learn the lessons of things that have not gone as well
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Reform – lessons learned
Collaboration works
•Decentralisation works
Senior commitment vital
- Need all constituents – brokers, companies & Lloyd’s
- The era of large, expensive, centralised, single solutions is over
- Standards and frameworks a better approach
- Change must come from the top
- MRG needs the key decision makers in the room
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Reform – lessons learned
Keep it simple
Lead implementers
Measure
- Small is beautiful; one step at a time
- G6 et al
- Rigorously
Targets - Demanding
Communicate constantly at all levels
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Measure & target
Resource itUse
standards don’t tweak
Sponsor it
Reform – What should it mean to you?
Internal change programmes are the key to benefits realisation
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Challenges ahead
Current reform is only a stepping stone
Insurance is a global business, reform needs to be seen in that context
Need to preserve the advantages of the physical market place in an electronic world
Insidious creep of complacency
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Conclusions
Measure and keep measuring
Set targets
Communication at all levels is
key to success
Clear frameworkDeliver in
manageble discreet phases
MRG to keep leading
Market Reform Group
Market Reform: Are we doing enough?
Dane Douetil, CBE Chair, Market Reform Group18 October 2007