With LMG Secretariat LMG Forum May 2011 Christopher Croft, LMG Secretariat Rob Gillies, LMA

With

LMG Secretariat

LMG ForumMay 2011

Christopher Croft, LMG Secretariat Rob Gillies, LMA

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Agenda

• Modernisation update

• Endorsements initiative

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

ECF2 Current Status Current slide 23rd May

Claims Agreement Screen (CAS)

Single Sign On (SSO)

• CAS & SSO are live• 3 carriers, plus XCS, using in production• Rollout in full swing, Hiscox and Liberty on board w/c

30/5

Document File Viewer (DFV)

Claims Workflow Services (CWS)• MAT testing is underway• Deployment to production in early J une• Rollout from J uly onwards

Claims Data Warehouse (CDW)• MAT for ECF001, ECF004 & ECF005 starting 6th J une• Baselinedplan in place and being delivered against• New infrastructure installed and being commisioned

• 16 carriers receiving live messages• 1 fully integrated into own workflow • Other carriers to join by arrangement with Xchanging

Claims Workflow Triggers (CWT)

• DFV is live, all documents converted• Documents are being processed online live• Roll out to carriers is in line with CAS & SSO schedule

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

eAccounts

eAccounts Release 1B (R1B)

• Miller continue their controlled submissions of live business

• Upgraded testing and training environment has been established for full rollout – Aon

will commence their testing on 13th June.

• UIB, Guy Carpenter & Price Forbes requested an extension of their testing into May

which is now concluding.

• Plans for further Broker roll out are being established with LIIBA

eAccounts Release 2 (R2)

• Change Requests following the detailed functional review are being evaluated.

• Options for progressing are being reviewed for presentation to the EAMG 25th May

• The build phase has commenced.

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The Message Exchange Limited (TMEL)

• Ownership transferred on 18th May

• New Terms and Conditions in effect

• If you have not signed…

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– Aegis

– Alterra

– Amlin

– Arch

– Argenta

– Argo

– Ark

– Ascot

– Aspen

– Atrium

– Barbican

– Beaufort

– Brit

– Canopius

– Capita

– Catlin

– Chartis

– Decus

– Faraday

– Flagstone

– Generali

– Groupama

– HCC

– Hiscox

– Jubilee

– Lancashire

– Liberty

– MAP

– Markel

– Miller

– Navigators

– Novae

– Odyssey

– Omega

– QBE

– Randall & Quliter

– RenRe

– RKH

– Ropner

– RSA

– Scor

– Sirius

– Sportscover

– Swiss Re

– Talbot

– Torus

– TransRe

– Travelers

– UIB

– Whittington

– Willis

– XL

– Zurich

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Future process

• Next steps

• Future process narrative

– Addressing issues raised in the consultation process

– Highlighting differences between current and future process

– Fleshing out the proposals in more detail, via process narrative documents.

• And then:

– Infrastructure, service provision and systems implications of the future process

– Cost benefit analysis and client service impact assessment

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Non bureau progress

• Pilot work continues

• Firms involved:

– XL Re

– XL Insurance

– Chartis

– Chubb

– RSA

– Aon

– Willis

• More welcome

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Questions?

Endorsement Initiative UpdateAgenda

Electronic Support for Endorsements

LMG Forum

25 May 2011


• Marine pilot update and benefits

• ‘Smart firms’

• 2011 sponsored classes of business

• Rollout timeline

• What next?

• Questions

Agenda

Endorsement Initiative UpdateAgendaAchievements

Exchange connections – technical capability of the market to

exchange electronic data messages

June 2010 May 2011

3 102


Message volumes – use of messaging to support business

transactions

June 2010 May 2011

1,220 52,000 (March)

12,000 325,000 to

dateto date

Achievements


Understanding the messaging process – support for broker-

underwriter negotiation

June 2010 May 2011

Achievements


Consensus about the future – messaging is a key part of our

market’s future

June 2010 May 2011

Achievements


Benefits – understanding and realisation of benefits

June 2010 February 2011

Benefit now

0 (?) 35%Benefit in future

0 (?) 89%



• Live trading began 1 October; 3 month pilot assessment period

• Pilot review now complete and results have been communicated

• 3 surveys to gauge the experience of marine pilot practitioners

• Post pilot review

• Independent benefits review by E&Y

• Degree of success established and lessons learnt: process proved to be stable

• Pilot issues are being addressed, currently 13 key process issues for which a delivery plan has been confirmed

• Confirmed roadmap for roll out to further classes through 2011 and 2012

Marine pilot update

Endorsement Initiative UpdateAgendaProcess use

Transmission of data and documentsScratch

‘Silent’ endorsements

NegotiationPROCESS



Simple negotiation

NegotiationPROCESS



PROCESS

Complex negotiation

Negotiation

Transmission of data and documents

Exchange Volumes

• Volumes have been encouraging

Message volumes

Month By Month Live Total Volumes

45 600 18853286412362378081996312050143431562221891

58541

107147

146785

186748

223116

273434

308209

0

10000

20000

30000

40000

50000

60000

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

Month

Mo

nth

ly M

essa

ge

Nu

mb

ers

0

50000

100000

150000

200000

250000

300000

350000

Cu

mu

lati

ve M

essa

ge

Nu

mb

ers

Placing and Support Messages

Cumulative Placing and SupportMessages

• Reduction in man hours

• Improved error rates

• Reduced turnaround time for simple endorsements

• Improved customer service through gains in turnaround times

• Real time tracking available = increased transparency

• Improved credit control, capital allocation and management information

Main benefits identified by the endorsement pilot

Endorsement Initiative UpdateAgenda‘Smart firms’

Process - Greatest benefits are experienced where responsibilities and resources have been clearly allocated to e-Endorsements.

Senior sponsorship - The CEO is visible within the firm promoting the initiative

Address the impact of cultural change - This is not a technology project. Organisations need to consider the impact on people and processes and monitor and adapt to these.

Integration – Greater benefits and acceptance of the process are achieved where firms have a level of integration

Endorsement Initiative UpdateAgendaCase studies

Broker

Insurer

2011 Sponsored classes of business

• Roll out to further classes of business sponsored by three major brokers and insurers:

• Property (Aon) - Catlin

• Professional Indemnity (Marsh) - Beazley

• Specie (Willis) - Ace

• Other brokers will come on board for these classes on a rolling basis

• Marine is business as usual – volumes are building

• All other classes of business ‘open for business’ on a bilateral agreement basis

• Roll out to all classes in 2012

Endorsement Initiative UpdateAgendaLMG Roll out timeline (awaiting PSSG approval)

Endorsement Initiative UpdateAgendaMeasurement and monitoring

• Other projects show that measurement and peer-comparison drive adoption

• Need to be careful we measure the right things



‘Silent’ endorsements

NegotiationPROCESS



Simple negotiation

NegotiationPROCESS



PROCESS

Complex negotiation

Negotiation

Transmission of data and documents

• Data from the Exchange is valuable but limited

• Data from market firms is necessary but that has its challenges

• Measurement of benefits realisation

• PSSG guidance to be sought

Endorsement Initiative UpdateAgendaWhat next

• Carriers: Work with sponsoring brokers to identify underwriting and broking teams affected by scope definitions

• Carriers: Provide underwriter or generic mailbox addresses for each class1

• Brokers: Decide on participation in 1 July classes and discuss engagement with project team ([email protected])

• New Exchange connections: participate in Exchange testing2

• All: Identify and progress bilateral messaging partnerships

• All: Undertake business familiarisation with practitioners and draw on central resources - example business scenarios; limited test messages (dummy carrier or broker); workshops; PM surgeries

(1 Details using standard contacts template to the Exchange Team by 20 June [email protected])

(2 Contact the Exchange Team [email protected])

mailto:[email protected]

mailto:[email protected]


Phase Two: 1 July 2011


Questions?

LMA and Endorsements Pilot Contacts

• Rob GilliesTelephone: 020 7327 8377Email: [email protected]

• Peter HoldstockTelephone: 020 7327 8383Email: [email protected]

LMG Secretariat contact

• Steve HulmTelephone: 020 7327 5249Email: [email protected]

IUA Contact

• John HobbsTelephone: 020 7617 4445Email: [email protected]

Lloyd’s Contacts

• James Bobbitt (Technical) Telephone: 020 7327 5248Email: [email protected]

• Paul Willoughby (Project Management)Telephone: 020 7327 6634Email: [email protected]

• Trevor Maddison (Relationships)Telephone: 020 7327 5231Email: [email protected]

• Abby Mullen (Project Support) Telephone: 020 7327 5631Email: [email protected]

LIIBA Contact

• Chris BuerTelephone: 020 7280 0154Email: [email protected]

CONTACTS