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LMG Secretariat
Future Processing Model Update
Simon Collins20 May 2010
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London Market Group
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Agenda
• Quick Recap
• What has been proposed?
• Project Progress
• Questions
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Quick Recap
2009
• 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
2010
• 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
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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
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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
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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
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Project Governance
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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.
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Project Plan - Milestones
The project milestones plan is available on the LMG website:
www.londonmarketgroup.co.uk
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Project Key Milestones
• Singleton Business Requirements June
– Placing Support, A&S, Claims, Facilities & Binders
• Singleton Future Process October
– Placing Support, A&S, Claims, Facilities & Binders
• Subscription Business Requirements October
– Placing Support, A&S, Claims, Facilities & Binders
• Subscription Future Process December
– A&S, Claims, Facilities & Binders
• Subscription Future Process Jan 2011
– Placing Support
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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
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Questions?