Market ReformProgramme Office

Market Reform: 2006 progress

21 December 2006

Andy Brookes

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

MRG Objectives 2006 +

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

MRG Objectives 2006 +

Overall CC score 92% in

September

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1);

MRG Objectives 2006 +

98% achievedOverall CC score 92% in

September

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

MRG Objectives 2006 +

98% achievedOverall CC score 92% in

September

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

MRG Objectives 2006 +

98% achieved

Overall CC score 92% in September

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

MRG Objectives 2006 +

98% achieved

Overall CC score 92% in September

Shared with the FSA

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

• Build user-friendly front-end for contract certainty checks (Q1)

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Contract Certainty

• Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4)

• Market slip compliance rated 99% (Q1); 85% of slips fully compliant (Q4)

• Resolve signed lines, late orders and other outstanding contract certainty issues (Q2)

• Clear plan for continued improvement of CC in 2007+ (Q3)

• Avoid regulatory intervention

• Build user-friendly front-end for contract certainty checks (Q1)

• Market feasibility for next stage of development of QA tools (Q4)

MRG Objectives 2006 +

98% achieved

So far…

Overall CC score 92% in September

Shared with the FSA

QA tools also streamlined for Lloyd’s Contract Documentation Pilot and for Binding Authorities

Further enhancements scheduled for Lloyd’s market next year

Superseded by CC

measurement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tContract Certainty

What else is happening and what should be live issues for your firm?

• Industry Assessment of Success

–8th and 25th January with FSA

• MR Slip Guidance

–Orders Hereon, Document Production, Fiscal & Regulatory, NCAD.…

• Stamp Conditions

– guidance forthcoming

• Legacy

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1);

Some statistics available from end October

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

Achieved, but lateSome statistics available

from end October

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

Achieved, but lateSome statistics available

from end October

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

Achieved, but lateSome statistics available

from end October

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

MRG reprioritisation.

Insufficient demand from market

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tMRG Objectives 2006 +

Accounting & Settlement

• Establish measurement regime (Q1); publish accounting checks (Q1)

• For ACORD international standard A&S processes:

– Agree and document outline processes (Q1)

– Publish detailed technical and business information (Q2)

– Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4)

• Implement A&S repository (Q4)

Consolidated and

completed in October

Achieved, but lateSome statistics available

from end October

Email and Direct Load live Sept

MRG reprioritisation.

Insufficient demand from market

DRI live December

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tAccounting & Settlement

What else is happening and what should be live issues for your firm?

• Repository

–Take up

– Pricing

– Further phases in 2007

• Measurement and ‘right first time’

• Strategy

–Speak to Rob Campbell (MRPO)

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

MRG Objectives 2006 +

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1);

MRG Objectives 2006 +

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

MRG Objectives 2006 +

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

MRG Objectives 2006 +

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaimsInfrastructure

• Publish processes and procedures for electronic claims – Lloyd’s first (Q1); IUA next (Q4)

• Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1)

• Plan for common claims procedure in London (Q1)

• Complete IUA repository pilot and agree next steps (Q2)

• Deliver Lloyd's electronic infrastructure into market testing (Q2)

• (At least 4) brokers and (9) Lloyd’s Managing Agents processing 100% of new claims electronically, supported by XCS (Q4)

• Set strategy for claims infrastructure beyond ECF (Q4)

MRG Objectives 2006 +

Reviewed in A&S strategy work, no plans to progress

Started June, extended into 2007

Live Now

Small but increasing numbers of wholly electronic claims processed: 31 MAs, 24 brokers & XCS committed to use

Reviewed in A&S strategy work, ECF upgrades in MRG plans for 2007

Rescheduled for Q1, 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tClaims Infrastructure

What else is happening and what should be live issues for your firm?

• Repository

–Take up

–Pricing

–Further phases in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other

MRG Objectives 2006 +

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1);

MRG Objectives 2006 +

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1);

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2);

MRG Objectives 2006 +

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other • Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

MRG Objectives 2006 +

None set, training as required by firms

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other

In Addition

• Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

MRG Objectives 2006 +

None set, training as required by firms

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

t

Other

In Addition

• Publish legacy Code of Practice (Q1); measured progress against code (Q4)

• Measure use of new infrastructure and business benefits (on-going)

• Training: ‘approved’ courses for contract certainty (Q1); framework for claims training (Q2); participation targets (Q4)

• Schematron

MRG Objectives 2006 +

None set, training as required by firms

Tool to ensure right ACORD are messages sent

Need to demonstrate significant legacy reduction in 2007

Mark

et

Refo

rmD

ec 0

6 as

sess

men

tCommunications

Questions