With LMG Secretariat Future Processing Model Update Simon Collins 20 May 2010 With London Market...

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LMG Secretariat

Future Processing Model Update

Simon Collins20 May 2010

London Market Group

Agenda

• Quick Recap

• What has been proposed?

• Project Progress

• Questions

Quick Recap

• Future Process Working Group

– The set of principles that should underpin any future model

– Recommended to the LMG that the proposed future process is workable and warrants move to design

• LMG-sponsored project initiated to deliver:

– A robust London Market process model, expressed in sufficient detail that it can be adopted implemented by the market

– A recommended transition/implementation plan; likely to identify a two stage approach, with a new model for 100% written business as the first implementation, followed by subscription business

Quick Recap – project business drivers

• Information is rekeyed numerous times throughout the process – leading to significant query and error rates

• A growing number of Lloyd’s market organisations want the same choice as Companies and the option to either outsource some processes to a different supplier, or perform them in-house

• There is a perception that overseas brokers are placing certain types of business elsewhere as result of London’s complex operating environment

• Initiatives such as Finish What We Started are improving processing, but still based on legacy systems and inherent Londonisms

Quick Recap - what has been proposed?

• Move to electronic “straight through processing” and re-use of information throughout the value chain (i.e. without any need for re-keying)

• Adoption of ACORD standard messages throughout the risk lifecycle

• Provide insurers with central core services and the option to select from a suite of supporting services, or to undertake processes themselves

Project Progress

• Project Steering Group has signed off:

– Objectives

– Deliverables

– Stakeholder Management Plan

– Project Plan

• Governance structure in place

– Project Working Groups working towards defined deliverables

Project Governance

Project Deliverables

• Detailed process maps: for the entire risk lifecycle; i.e. placing, accounting, settlement, claims and reporting. Differences and variations to the process should also be documented, for example for different classes of business.

• Rule book: The process maps must be supported by a rule book providing narrative for processing all types of business via the future processes.

• Referencing structure: A signed-off document detailing the referencing structure and associated rules for future risks and claims.

• Data maps: Data maps that show where specific data items are captured in the process, where they are reused and their optionality.

• Definition of central services: A definition of the central services that will support the Future Processing Model, whether they are mandatory or optional and whether the service will be offered by a single supplier or possible multiple suppliers.

• Implementation plan: A plan that details the key tasks and timescales for implementation, including options available for transition.

• Cost Benefit Analysis: A breakdown of the costs and benefits associated with implementing the future model.

Project Plan - Milestones

The project milestones plan is available on the LMG website:

www.londonmarketgroup.co.uk

Project Key Milestones

• Singleton Business Requirements June

– Placing Support, A&S, Claims, Facilities & Binders

• Singleton Future Process October

• Subscription Business Requirements October

• Subscription Future Process December

– A&S, Claims, Facilities & Binders

• Subscription Future Process Jan 2011

– Placing Support

Further Information

• For further information regarding the Future Processing Model project please visit the LMG website:

www.londonmarketgroup.co.uk

• Here you will find, amongst other things:

– The Project Initiation Document (scope, deliverables, success criteria, etc)

– Terms of reference for all project groups

– Proposal to MRG (now LMG), including 2009 process maps and the principles & assumptions underpinning the project

Questions?

With LMG Secretariat Future Processing Model Update Simon Collins 20 May 2010 With London Market...

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