E-Policies: Faster with fewer dead trees M ark Barwick, Project Manager, LMBC

E-Policies: Faster with fewer dead treesMark Barwick, Project Manager, LMBC

AgendaTypes of evidence of coverWhat language in the slip triggers EOC?Scope of e-policiesBefore using e-policiesE-policies submission & signing processBenefits of e-policiesMRG Targets and milestonesFlyer to be inserted into all paper policiesExample e-PolicyFurther InformationQuestions

this is a user template

Types of evidence of cover Original evidence of coverContract documentBroker Insurance Document (BID)Policy/ E-policyCertificate (Binding authority only)Contract changesContract change document agreed by insurers (MRCE) Policy Endorsement/ addendaContract change document finalised by broker (with BID status)


What triggers evidence of coverContract Document:INSURER CONTRACT DOCUMENTATION heading in RISK DETAILS section of MRC specifies This document details the contract terms entered into by the insurer(s), and constitutes the contract documentPolicy:INSURER CONTRACT DOCUMENTATION specifies XIS to sign Lloyds policy and/or XIS to sign Company policy. Wording must be attached, or clearly referenced, when insurers commit to contractE-policiesINSURER CONTRACT DOCUMENTATION MRC heading specifies XIS to sign Lloyds policy and/or XIS to sign Company policy, which may be in electronic format. Broker has registered for E-policy. No special instructions on the PCF/Work Order requesting a paper policyBroker Insurance Document (BID) may optionally be used by broker


Scope of e-policiesIn-ScopeCovers marine, non-marine and aviationInsurance and reinsuranceDirect, facultative and excess of lossS&A or Policy only Policies, policy endorsements and slip policies (companies only)

Out of ScopePolicy endorsements where the original policy was on paperPolicy requests by renewal receiptBinding authority wordings


Before using e-policiesBroker must complete required registration formBroker must be an existing user of A&S, either Direct Load or DRIAdobe Acrobat Reader (version 5 or above) must be installed to allow brokers to view the e-policyDetermine what central email address you want the signed e-policy to be sent to Consider whether you want to tell your clients about the changeTrain your policy technicians in Direct Load or your DRI solution


E-policy submission processEnsure your MRC makes it clear you require a policy, and the policy is attached to the MRC when placed.Submit a word/PDF copy of wording via A&S as part of work packageEnsure Work order specifies either a Policy Only submission or a Premium and Policy submission. Ensure a Policy Control Form is completed and present in work packageIf the (re)insured has specifically requested an embossed policy then specify a paper copy is required on the Policy Control Form


E-policy signing process at XchangingXchanging sign the policy electronically and apply an electronic seal to the document, similar to the embossed seal found on paper policies.Xchanging load a copy of the signed policy to the UMR folder of the repository with a document type of Signed Policy. The submitting broker and the participating insurers can all view the document.Xchanging email a copy of the electronically signed document to the central email address provided by the broker when they registered for e-policies. Brokers may send the e-policy to their client electronically, or where the client preference is for paper this may be printed and sent on as a paper document


Benefits of e-policiesFaster turnaround time since document is sent/received much quicker allows brokers to meet their contract certainty obligationsReduction in paper handling costsStill allows a paper policy to produced where local regulation demands itElectronic record of policy held in the repository for subsequent processing and claimsAND

SAVE TREES!


Brokers registered as at 25th June 2008Alec Finch (London) Alwen Hough Johnson ARB International BDB Ltd Benfield BMS Intermediaries Bowood Partners Ltd Chesterfield Citynet Insurance Cogent Resources Connor Hale Kerslake Contractsure Cooper Gay EBA (European Brokers Associated) EPG Insurance Gina Fitzgerald Glencairn Grosvenor Brokers Guest Krieger Guy Carpenter HBA Ltd Heath Lambert Houlder Ins Howden HSBC Integro Group James Hamden Jardines Jonh Holman & Son Lark Insurance LMIB Lonsdale Lothbury UK Lucas Fettes Marsh Millers Newman Martin & Buchan Paul Napier Price Forbes Priest &Co Prime Professions PWS/THB R K Carvill R K Harrison R L Davison RFIB Robertson Taylor Insurance Safeonline Senior Wright Ltd Tyser &Co Willis


2008 Volumes to date


Chart15

Jan0.220.2133333333

Feb0.140.2666683333

26325010.190.3200033333

27707960.290.3733383333

26518740.330.4266733333

JunJun0.4800083333

JulJul0.5333433333

AugAug0.5866783333

SepSep0.6400133333

OctOct0.6933483333

NovNov0.7466833333

DecDec0.8000183333

Total policies signed

Electronic policies signed

Electronic proportion

Monthly interpolated target

Electronic Policies: Market take up

Chart1

Lloyd's ECF rate

Interpolated quarterly target

Quarterly target

ECF trend Q2 - Q3

Chart2

Electronic Original Premium submissions to the bureau

Electronic Original Premium submissions to the bureau

Chart3

0.370.7

0.480.76

AP/RP submissions

OP only

IMR Usage - Accounting & Settlement

Chart4

0.70.37

0.760.48

0.770.51

0.830.55

0.910.69

Original Premium

AP/RP

A&S: proportion of submissions sent via IMR

Sheet1

Market Reform Summary20072008

JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDec

A&SOP only17%19%19%22%21%24%28%35%36%42%49%64%70%76%77%83%91%

Target40%60%80%100%

AP/RP4%5%6%8%9%10%12%15%19%23%28%37%37%48%51%55%69%

Target100%

ECFLloyd's rate8%12%15%19%20%29%34%43%45%57%59%88%90+%90+%90+%

Target30%60%100%100%

IUA rateNANANANANANANANANANANANA23%27%

TargetNANANA100%

Contract CertaintyBrokers93%95%94%95%94%95%95%96%96%96%94%94%

Managing agents95%95%94%94%95%94%94%94%93%95%95%95%

Company Market94%95%96%96%96%97%96%97%96%97%97%96%

Target90%90%90%

LegacyLloyd's Index84796359544541393733252422212015

IUA index100938674565246414039363232322825

Target605040

Biggest users of e-policies


MRG targets and milestones


From July 2008 all paper policies received from brokers will have this flyer inserted into the documentation before it is returned to the brokerSimilar approaches have proved successful for other reform initiatives such as A&S usage and adoption of new slip standards

Market

THE MRG HAS SET A TARGET THAT 80% OF ALL POLICIES SHOULD BE ELECTRONIC BY Q4 2008.

40 Lloyds brokers are using the service and 20% of all policies are prepared on this basis. Your paper policy has been signed, but you need to act now and register for e-policies so any future submissions may be e-policies.

To find out if your firm is registered check www.marketreform.co.uk UPDATE LINK ONCE DATA IS THERE

Scope of E-policies

1 All policy requests submitted via A&S, either Direct Load or DRI, where the INSURER CONTRACT DOCUMENTATION heading in the MRC specifies a policy will be produced

2 All policy endorsements or addenda also submitted via A&S.

Summary of process

1 Ensure your MRC makes it clear you require a policy, and that the policy is attached to the MRC when it is placed.

2Submit a word or PDF copy of your wording via A&S, flagging the work order as either a Policy Only submission or a Premium and Policy submission. A Policy Control Form needs to be included CHECK WORK ORDER TERMS

3Xchanging sign the policy electronically and apply an electronic seal to the document, similar to the embossed seal found on paper policies.

4 Xchanging load a copy of the signed policy to the UMR folder of the repository with a document type of ???. The submitting broker and the participating insurers can all view the document.

5Xchanging email a copy of the electronically signed document to the central email address provided by the broker when they registered for e-policies.

6Brokers may send the e-policy to their client electronically, or where the client preference is for paper this may be printed and sent on as a paper document

Exceptions

Once registered for e-policies it is still possible to request a paper policy in exceptional circumstances such as where local regulation requires the client to have a paper policy. For further details refer to the User Guide.

Other Contract documentation

These guidelines relate to instances where a policy is still required. This does not mean a policy is required for all contracts. The MRC Implementation Guide contains details of the Contract Document which may be issued as an alternative. For further information refer to the MRC Implementation Guide.

Further Information

The MRO website contains a User Guide for e-policies and a copy of the registration form as well as a FAQ. For further informationcontact:

LMBC

[email protected]

020 7397 0207

Xchanging

[email protected]

01634 887 662

www.marketreform.co.uk UPDATE LINK

_1171785711.bin

_1186488431.bin

Further InformationThe following documentation is available from the Market Reform website:Xchanging E-policies User Guide.List of brokers who have signed up for E-Policies http://www.marketreform.co.uk/PI_P_ElecPol_Brokers.htm Specimen E-PolicyFrequently asked questions documentE-Policies broker registration formTo view or download these documents go to:www.marketreform.co.uk

For further information contact: [email protected] - 0207 397 0207 or [email protected] - 01634 887 662


Documents

E-Policies: Faster with fewer dead trees M ark Barwick, Project Manager, LMBC