With London Market Group The Future Process Model – where are we headed? Tim Carroll LMG Forum - 20th October 2010

London Market Group Launching LMP in 1998

London Market Group The drivers… Efficiency to keep London competitive Optimising central services Choice for insurers

London Market Group Progress thus far… Workshops held with Heads of Associations and Lloyds 2009 Future Process Working Group established. –Agreed a set of principles that should underpin any future model –Recommended to the LMG that the proposed future process is workable and warrants much more detailed design An LMG-sponsored project has been initiated to deliver: –A robust London Market process model, expressed in sufficient detail that it can be adopted and 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

London Market Group Governance structure

London Market Group The starting point Finished what we had started Endorsements roll out & placing Claims transformation project The Exchange

London Market Group Key themes Future processes all supported by standard (ACORD) messages Information captured at its earliest point and reused throughout downstream processes –Removal of rekeying of information Continued reliance on some central services for subscription business Transparency, simplicity, clarity across processes (for practitioners & customers)

London Market Group Placing Data exchanged electronically –Moving to far richer ACORD messages over time –Separation of pre and post bind processes so that data capture not onerous during negotiation Early data capture to remove rekeying in downstream processes Face-to-face broking continues but might be replaced eventually for straight-forward, non-complex placements

London Market Group Accounting & Settlement Accounting and settlement process separate from reporting Accounting entries and instruction to settle achieved electronically (ACORD) Alignment and consistency across the process Fewer queries and greater automation

London Market Group Claims Working Group A central Claims Platform –Ability to integrate with back-office systems Flexible process to cater for future claims protocols/schemes Claims agreement parties confirmed during placing risk

London Market Group Facilities & Binders Group Placing of facilities supported electronically Standard bordereaux format and information (ACORD) Potential for real-time data provision from coverholders Outside of authority placing and claims to follow open- market processes

London Market Group Coming soon Consultation document Proposals on non-optional central services Pragmatic, deliverable model Basis for market debate

London Market Group Questions?

With London Market Group The Future Process Model – where are we headed? Tim Carroll LMG Forum - 20th October 2010