0. Documentation & Contract Checking Market Reform Forum 25 April 2007RT
- welcome on behalf of Lloyd’s & LMA

1. LMBC – Mike Reidie, Nigel Roberts
Panel members:
LMA – Martin Roberts
Lloyd’s –Kieran Flynn
LMBC – Mike Reidie, Nigel Roberts RT
- Helpful if you could make a note of questions for later
- Pl then give your name/firm/question…thank you

2. Documentation & Contract Checking
Increasing certainty, quality and speed
Market Reform Slip
Contract Certainty
Contract Checking
Martin Roberts

3. Changes to Documentation & Checking
Have been developing for some months:
Background – Richard Ward’s letter 22 May 2006 and
subsequent publications
Main Features:
All risk checking pre-bind: no stage 2 checking (limited volumes/ too late in process)
A Copy slip may be used as the sole contract document
Key dates:
February 2007 no automatic addition to UPR
End June 2007 stage 2 checking ceases/Slip policy schemes withdrawn
Martin Roberts

4. Changes to Documentation & Checking
Documentation options/new XIS service
No further documentation required:
Include Attestation Clause LMA3036A or
Lloyd’s Policy required
Include Attestation Clause e.g LMA3037A
XIS Policy Signing Service – limited policy review, not full check (proof read process)
Martin Roberts

5. Contract Checking
All contract checking will need to be ‘Pre-Bind’ (‘Pre-Bind Quality Assurance’- PBQA):
Underwriter/Broker responsibilities for quality
Scope of checks for PBQA:
CC, Tax & Regulatory and Lloyd’s Advisory/Risk Management
Martin Roberts

6. Documentation Ensuring clarity and certainty for all parties
Underwriter Documentation:
Lloyd’s policy
Complete copy of slip
Certificates
Broker Documentation:
BID
Martin Roberts

7. Pre-Bind Quality Assurance (PBQA)
Focus now on:
Reducing Legacy UPR listing and
Ensuring Pre-Bind Quality Assurance
Engagement with the market has included:
Fact find on current ‘PBQA’ procedures within Lloyd’s
Working Group shaped market approach to PBQA & endorsement by UCC of proposals to market
Liaison with LMA, LMBC & IUA to encourage consistency on ‘Documentation and Contract Checking’ issues
Kieran Flynn

8. Pre-Bind Quality Assurance (PBQA)
PBQA addresses CC, Tax & Regulatory and Lloyd’s Advisory/ Risk Management checks
Responsibility of MAs from 1 July 2007:
Recognition of declining volume of Lloyd’s Policy requests and
Cessation of Stage 2 checks by XIS
Lloyd’s Market Bulletin will underline risk-based approach expected:
Each MA has own PBQA procedures, reflecting individual risk
KMF
-Lloyd’s Market Bulletin will underline the risk-based approach expected:
Each MA will have assessed their own risk and set appropriate PBQA procedures
Options to manage PBQA-risk include:
reliance on experienced u/w personnel,
use of QA Tool checks,
use of information in Lloyds.com
earlier receipt of slips from brokers,
use of wordings technicians,
use of service providers,
use of model wordings,
use of s/ware to automate checks

9. Pre-Bind Quality Assurance (PBQA)
Lloyd’s seeking practical approaches to assist the market:
Clear risk-based approach set out for all, within U/W Standards
Broking community engaged (assisted by Nigel Roberts & LMBC)
Access to model wordings (in cooperation with LMA)
Evaluation of automated checking with Adsensa (to support experienced underwriting & wordings personnel)
Creation of coordinated information resource within Lloyds.com
Crystal – Tax & Regulatory information, complementing QA Tool
Enhancing QA Tool checks/ process (will take time)
KMF
- Apart from setting a clear approach to PBQA generally, Lloyd’s is seeking practical ways to assist
- Recognise the importance of engaging with brokers – early discussions with LMBC, LMA & IUA show a willingness to work together – Broker Forum on 16 April was successful…we are all in this together
- Run through each development above
- Reinforce that Lloyd’s is here to assist the market now and beyond the 1 July 2007 date

10. Working together – What’s in it for brokers?
Enhanced service for brokers’ clients once implemented
Certainty in document content/format
Faster final contract to client
Reduction in post placement administration
Easier to achieve 30 day target for contract issuance
Mike Reidie
- Hopefully able to reinforce the message that once fully implemented, the new procedures will be beneficial to all

11. Any Questions? RT Panel in place at front please
Name/ Firm/ Question – to whom is it addressed?