With

Market Reform Office

Market Reform Forum

Christopher Croft, MRONigel Roberts, Chair, e-Accounting Steering GroupGeoff Kennard, Xchanging

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9Market Reform

OfficeAgenda

• Market reform 2008 review and plans for 2009 – 11

• E-Accounting – launch of a key project for 2009/10

• IMR Service update

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rmInitiative Target Progress

Placing document standard for London (MRC)

Confirm whether update required

V1.2 published earlyAugust

Implement MRC for Binding Authorities and Lineslips

Adopt as market standard

New standard published

Further reduce Legacy policies

Reduce mid 2006 numbers to below 20%

Ahead of target. FSA announcement

Promote take up of electronic support for placing

To be defined by Steering Group (Q1)

Targets premature. Progress continuing. Increasedtwo way placing. Lloyd’s Exchangesupplier selected.

MRG 2008: Placing

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rmInitiative Target Progress

Adopt Electronic policies

80% of bureau policies

77% of policies submissions electronic

Market Reform Contract Endorsement (MRCE)

Adopt as market standard

New standard published:

Endorsements via e-messaging

To be defined by Steering Group (Q1)

MRG target: 3,000 electronicbroker submissions in Dec. Circa 2,400in Nov.

MRG 2008: Placing

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rmMRG 2008: A&S

Initiative Target Progress

Implement A&S enhancements (Release 4)

Enhancements delivered

Further enhancements delivered; ACL changes specified

Use repository for original premiums

100% of original premiums

95%

Use repository for additional and return premiums

100% of submissions 78% achieved. Broker data published

Adopt de-linking 100% use for in-scope transactions

Rate up by © 10% on equivalentmonth 07 in both markets.

Implement Premium Payment Working Party recommendations

Successful implementation

Report published. Pilot underway

A&S ACORD messaging for bureau & non-bureau

To be set by Steering Group (Q1)

See Nigel Roberts presentation!

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rmMRG 2008 - Claims

Initiative Target Progress

ECF enhancements to increase scope and improve usage

Enhancements delivered

Limited progress, ACL changes specified

Full ECF usage for new in-scope (as at end 2007) claims

For Lloyd’s

For IUA companies

90+%IUA 41% vs target of 70% of all claims Dec

ECF for legacy claims Complete pilot, review targets (Q1)

Pilot report signed off; take up Jan 09 on

Implement service targets for ECF claims

Approach to service targets defined

4 of 5 MI reports delivered

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9Market Reform

OfficeReform agenda 2009 - 11

• Finish what we have started

– Full ECF usage for all claims including legacy

– Full usage of e-Accounting

– Fully electronic policy submissions

• Dependent on Xchanging for a lot of work

– IMR Upgrades

– Security model

– Claims developments

– Ongoing usability enhancements

– Taking ACORD accounting messages

– Non fundamental splits service

• MRG has a plan…

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9Market Reform

OfficeMRG/Xchanging deliverables

QTR 3 08

September October November December January February March April May June July August September October November December

Phase 1

Phase 2

Hardware and software upgrade

Se

cu

rity

Mo

de

l

Increased Take Up (Security model)

AAC

***MRG funded £200K for design.

Proposal to be brought forward by the end of the

year. Will be signifcant £ but will have value across many

market services

Extend scope forelectronic

submissions

Legacy Claims ECF take up

Usability and Functionality

Improve ECF usability

MI Reports (for firms on ECF Performance)Reports 1-4 - Take up & outstanding claims Report 5 - End to end transaction time

£150k paid from MRG budget -

Precursor toservice targets

Claims Database Project

MRG contributed £25K to scoping.

Claims Workflow Triggers

Claims Workflow Service

A&

S Usability andFunctionality

AACMarket - 2009 releases to be

scopedImprove A&S usability

Auto Load A&S Data (ACORD Tech Acct) into POSH & LIDS

Settlement Trigger(Financial Account)

Non-Fundamental Splits Service

Make Londonmore attractive

Broker commitmentand take-up

LMBC

*** Support for testing and roll outbeyong first three brokers

Drive efficienciesinto the market

Delinking LMBC

MRG to pay for reports to market firms (circa £7k for 6 months)

Enable Faster Premium Movement

Pla

cin

g

e-Policies LMBCBuilt and Paid for

by Xchanging

Provide Policies Earlierand Reduce Paper

in the Process

Key:Xchanging deliverable MilestoneXchanging deliverable where task/date to be confirmedComplete\progressed Milestone where date to be confirmedNon Xchanging deliverableNon Xchanging deliverable where task/date to be confirmedComplete\progressed Dependancy/potential impact

AAC

IMR

- U

pg

rad

es

Responsible Market Group

MRG: Finish What We StartedInsurers' Market Repository and Electronic Accounting:

Xchanging Delivery and Related Workstreams

Benefit

Industrial strengthplatform

Quarter 4 2009Quarter 3 2009Quarter 2 2009Quarter 4 2008 Quarter 1 2009DeliverableStream

E.

Acco

un

tin

gC

laim

s

Xchanging in consultation

with AAC

AAC

MRG to Establish Effective

Mechanism

Reduce error andrejections rates

To be resolved by insurers & Xchanging

Funding

XIS, charges included in IMR

service price under contract

Market - 2009 releases to be scoped plus

legacy roll out

Improve claims processing and client service Xchanging to

fund development (first component of Global Claims

Platform)

Design, Build & System Test

'Live'6/10

Build MAT

MAT 'Live' 01/07

AACApproval28/11

ACL DeliveryDate TBC

Build Release 7b

Rel. 7b'Live' 17/11

MATRelease 7b

Reports 1- 4Delivered

BuildRelease 5

MATRelease 5

R6 - Align Appropriate CRs with IMR Upgrade Phase 2

Deliver Auto Load of Technical Accounts into POSH & LIDS

Lloyd's Date TBC

LMA define and resolve funding/ charging structure

SplitsServiceAvailable

Lead broker take-up for ACORD Technical Acounts (with Auto Load), and Company Brokers for Settlement Trigger

Consultation Period

Design, Build & System Test(Dates TBC)

MAT(Date TBC)

ScopeRelease 8

Define Business Reqts - Rel. 8

Release 8 Design and Build(Dates TBC)

MAT

Report 5 DeliveredDate TBC

Scope Release 6Go/No Go Decision

Design, Build and System Test

Design, Build, System Test & MAT(Dates TBC)

Design, Build, System Test & MAT(Dates TBC)

Define business requirements &

functional specification

BrokerRoll-Out for Complete

Service

Lloyd's info requirements may impact on split service

PilotXCS Workflow

ChangesRoll-Out (by Class of Business)

Market Roll-OutDesign, Build & System Test

Early AdopterRoll-Out

(Date TBC)Market Roll-Out

Trigger File Available

MRGDecision

Scope Development

Rel. 5'Live' 17/11

R6 - Align Other CRs with IMR Security Project

IUA Live

Design, Build & System TestRelease 2 - Documents and Data visible in the Workflow Service

Release 3 - Functionality to respond to claims through Workflow

Messaging interface to write back responses

for claims

No 'van crushing'

until ACL gets done

Design, Build, System Test & MAT (Dates TBC)

Data provision

100% Broker take-up

Data provision

100% Broker take-up

Market Stop Submitting Paper Policy RequestsDate TBC

End of Deferred Scheme PilotDate TBC

Changes that don't impact the IMR Upgrade

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9Market Reform

OfficeReform agenda 2009 - 11

• Keep up progress on e-Placing

– Pilot Lloyd’s Exchange

– Further develop ACORD standard

– e-Endorsement bilateral agreements

– Transition to ACORD messaging

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9Market Reform

OfficeReform agenda 2009 - 11

• Next wave - FWWS does not mean we’ve finished

• Looking at five year vision

• Where will market be and what do we need to do to prepare?

• Work with market

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9Market Reform

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Questions?