23/04/20141 e-Placement Support Where are we and whats next? 19 August 2009 Copyright Watertrace Management Consulting. All rights reserved

10/04/23 1

e-Placement Support

Where are we and what’s next?

19 August 2009

Copyright Watertrace Management Consulting. All rights reserved

10/04/23 2

2009 Survey demographics


Quantitative and Qualitative analysis was conducted;

32 market firms were representedAreas of interest

•Commitment to ePlacing support•Strategy and process•Value and benefits•Leadership•Drivers of the change•Progress blocks

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ePlacing is becoming the norm...?


Tool use is up for both Insurance and Reinsurance.

Is this sufficient evidence to suggest it’s the norm…..?

Less than 50% of underwriters agree that ePlacing will become the norm.

Is this an initiative that only the brokers want?

Is there nothing in it for underwriters?

ePlacing is not the norm today, and tomorrow?…

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The business case for ePlacing is widely accepted...?


Brokers perceived greater benefits from ePlacing support use than underwriters;

Fewer than 40% of underwriters note considerable benefit at any stage;

The business case is questionable from an underwriting perspective.

Rather than being accepted, how do we define the business case?

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Widespread agreement that ePlacing is the panacea...?


Both brokers and underwriters believe the benefits of ePlacing support will be significant in the future: 81% of brokers and 49% of underwriters see significant future benefit for their firm

BUT, what seismic change will need to occur to make this happen when benefits are limited at present? Is the market capable / ready for a change?

Is it merely wishful thinking that the future will be better?

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The Management Divide


Und

erw

riter

Brok

erM

anag

emen

t Reduced risk through better information

Higher revenue as greater volumes possible with streamlined processes

More from the practitioner “Pound of Flesh”

Is it possible that increased volumes could bring benefit to practitioners too?

Is there a divide at all?

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There is a perception difference


Business case for firms

Managers driving

Quant results don’t reconcile with focus group discussions

Practitioners on board?

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Aon mandates Brokers use RI3K

Aon mandates Brokers use RI3K

Q1 2008

Market Reluctant on placing

support

Market Reluctant on placing

support

Q2 2008

LMA publishes Business Process

Protocols

LMA publishes Business Process

ProtocolsQ1 2009Vendor alignment &

market use increases

Vendor alignment & market use increases

Q3 2009

Lloyd’s Exchange & Ruschlikon

pilots complete

Lloyd’s Exchange & Ruschlikon

pilots complete

Q2 2010 3 major brokers and most of the market transacting at least

some business using standard platforms

3 major brokers and most of the market transacting at least

some business using standard platforms

Q3 2010

Rationalisation &

standardisation of market

system solutions

Rationalisation &

standardisation of market

system solutions

Q2 2011

London Market seen as standard for a trading

hub

London Market seen as standard for a trading

hubQ4 2011

70% of all market transactions being

supported by electronic means

70% of all market transactions being

supported by electronic means

All market systems have integrated

solutions

All market systems have integrated

solutions

Q2 2012

All trades supported by electronic means. STP for non-complex

business not requiring f-2-f

All trades supported by electronic means. STP for non-complex

business not requiring f-2-f

Q1 2013

Lloyd’s Exchange

Pilot commenc

es

Lloyd’s Exchange

Pilot commenc

es

Ruschlikon pilot

commences

Ruschlikon pilot

commences

Q2 2009

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Questions to be answered

• What’s the vision?– For the firms– For practitioners– For management

• Who’s leading, driving, influencing - roles?– Lloyd’s / LIIBA / IUA / LMA / MRG / larger firms / suppliers

• Is the business case defined, clear, articulated, in consensus?

• Roadmap agreed, milestones communicated?


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10/04/23 Copyright Watertrace Management Consulting. All rights reserved

Documents

23/04/20141 e-Placement Support Where are we and whats next? 19 August 2009 Copyright Watertrace Management Consulting. All rights reserved