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Leadership, Knowledge, Solutions…Worldwide.
Electronic Endorsements Pilot
Roger Oldham Head of Market PracticeCentral Management
It’s not complicated
Marsh—Leadership, Knowledge, Solutions…Worldwide. 2
E-Placing Support – Is it such a big ask?
Marsh—Leadership, Knowledge, Solutions…Worldwide. 3
Support, not replace
ELECTRONIC PLACING DATA EXCHANGE
Marsh—Leadership, Knowledge, Solutions…Worldwide. 4
What is this project all about?
Simple
The electronic transfer of contract change data between the broker and underwriter using ACORD Standards, via a central validator.
What is this NOT?
The removal of face to face broking, where it is perceived by a broker or underwriter to be adding value
Marsh—Leadership, Knowledge, Solutions…Worldwide. 5
Where did we start?
Assessing the options available:
Use of a platform
Build own system from scratch, complete with gateway
Enhance existing system to ACORD standard specification
Marsh starting with existing e-placement foundations
Lotus Notes E-Endorsement Database Facility
Broker 21
Eurotrade
Marsh—Leadership, Knowledge, Solutions…Worldwide. 6
The E-Messaging Flow
MARSH
THE EXCHANGE
UNDERWRITER
TRI SYSTEMS
PLATFORM
ACORD STANDARD
Marsh—Leadership, Knowledge, Solutions…Worldwide. 7
Practical steps in getting started
Internal
Put together business case – identify benefits
Create a project plan with clear milestones
Get senior level sponsorship
Make decision on technology to be used
Identify key stakeholders within business
Create a project team – meet weekly
Allocate set responsibilities within that team
Decide on mode of communication internally
Pick pilot area
External
Establish firm links with Market Project Managers
Understand the project scope and deliverables
Participate in relevant Market committees
- EMG, MAT Group, PSIG, PSG
Work closely with IT service providers
Form working partnerships with underwriters
Manage external expectations and comms
Marsh—Leadership, Knowledge, Solutions…Worldwide. 8
Route to implementation
Testing:
Connectivity
- Are the simple messages getting through?
- Can underwriters respond?
Market Acceptance Testing 1 & 2
- Using agreed Market scripts
Business Scenario Testing
- Identifying, with practitioner input, the most appropriate trading scenarios
Marsh—Leadership, Knowledge, Solutions…Worldwide. 9
A journey of discovery
What we found:
MAT1 - some of our underwriting partners were not following the scripts
- some underwriters only had one person responding
- we had to completely repeat MAT1
- underwriters could respond without GUA instructions
- underwriters able to enter narrative with an unconditional acceptance
MAT2 - If a Word version of the EMRCE was attached, underwriters could amend
- Leader could say “no” to notifying contract changes to follow markets
- It was possible to send a message without an accompanying document
- Will be important to ensure contact names and email addresses updated
Marsh—Leadership, Knowledge, Solutions…Worldwide. 10
Hurdles to jump
Exchange governance
Exchange Terms & Conditions
Internal IT Security
IT supplier contract
Interchange Agreement
MAT/BST
Platform updates made available by 1st October
Availability of internal resource
Cultural resistance
Marsh—Leadership, Knowledge, Solutions…Worldwide. 11
Market Status – E-Endorsement Pilot
All Managing Agents are now connected to the Exchange
38 of these MA’s are involved in the endorsement pilot
21 brokers are connected the Exchange
19 of these brokers are involved in the endorsement pilot
13 IUA companies are connected to the Exchange
9 of these companies are involved in the pilot
A series of practitioner workshops has been delivered – 350 attended
All questions from these workshops have been answered – LMA website
Message volumes on Exchange growing –
1,100 live placing messages
11,000 supporting messages
Marsh—Leadership, Knowledge, Solutions…Worldwide. 12
Next steps
Proceed with a thorough programme of Business Scenario Testing
Go live by 1st October 2010 in pilot classes, or earlier if possible
Work with trading partners to ensure service levels are maintained
Ensure there is a clear programme of internal and external communication
Ensure readiness to start rolling out to other classes of business in 2011
Marsh—Leadership, Knowledge, Solutions…Worldwide. 13
Final thoughts
This is not simply about the electronic transfer of contract change messages
It’s the start of a much needed process improvement programme
If we get this right, many of our post placing administrative problems will also be reduced
The keying of risk data only once, sees the start of our desire to achieve STP
This in turn brings about the potential for one data set being used not only for placing and contract changes, but for premium and claims processing also.
It’s not complicated
Leadership, Knowledge, Solutions…Worldwide.
This PowerPoint™ presentation is based on sources we believe reliable and should be understood to be general risk management and insurance information only.
Marsh Ltd. is authorised and regulated by the Financial Services Authority for insurance mediation activities only.
© Copyright 2010 Marsh Ltd All rights reserved