electronic placing in the london market

Electronic Placing in the London Market

July 2007

Rob GilliesLloyd’s Market Association

What is electronic placing?

• Data and negotiation

What is electronic placing?

MRG Vision 2007-2009: All risks submissions sent electronically; wholly electronic trading for some simple risks with no manual intervention; face-to-face when required for large and complex risks

What is electronic placing?

Face to Face

Complex

Face to Face, Telephone, Electronic

Moderate

Electronic

Simple

Negotiation

Data Exchange

• Improved regulatory compliance

Why electronic placing?

= Improved client service and increased shareholder return

• Reduced costs

• Increased operational efficiency

• Strategic business opportunities

Why electronic placing?

• What’s in it for me

• The organisational perspective – the personal perspective

• Relevance of benefits reflects organisation’s business model

• Benefits model

What has been achieved so far?

• Development of the Market Reform Contract to meet ACORD standards

• Review and standardisation of the endorsement process

• Development of a Wordings Repository

• Development of the data sets and processes for EP to meet ACORD standards

What has been achieved so far?

• Successful piloting of peer-to-peer placement by five brokers and six managing agents

• The use of electronic placing standards by Aon, Marsh, Guy Carpenter and other organisations for inter-office routing of risk information

• The electronic placement of 98% of Benfield’s Japanese renewals for second quarter 2007

• Announcement of Aon’s intention to use the Ri3K electronic placing system to deliver all Treaty business. They are also looking to expand scope

• Adoption of RI3K by Lloyd’s China

• Adoption by Aspen Re of electronic messaging standards

• Active involvement in or serious expression of interest in electronic placing by total of fifteen managing agents, three insurance companies and six brokers

Project Scope

• to create clarity in the market about the benefits and implications of, and options for, the adoption of EP

• to extend significantly the use of EP amongst organisations in the London insurance market.

Project runs to end of Q2 2008

Objectives

• This is a London market business issue

Project Scope

• Benefits based business case for adoption

• Agnostic towards technology

• Adoption of ACORD standards, implemented consistently

• All business in scope

• Briefing pack

Resources

• Benefits model

• Landscape analysis

• Promotion and support

• Implementation guides and groups

• The technology exists and is available

• Entry costs are affordable

Technology

www.the-lma.com

Peter Holdstock Consultant020 7327 8383

peter.holdstock@lmalloyds.com

Rob Gillies Head of Market Reform Policy

020 7327 8377

robert.gillies@lmalloyds.com

Contacts

Please leave a business card to be added to our distribution list

Questions

Electronic Placing in the London Market

July 2007

Rob GilliesLloyd’s Market Association