WIN Magazine - Spring 2014 - (Page 14)
A Continuous Path to Excellence
BY JAMES BOBBITT
VER SINCE EDWARD
Lloyd was running
the original coffee house, there has
been a desire to use
modern technology to
improve the way complex insurance
is transacted in London.
The London Market Group (LMG)
has been leading our most recent
efforts for more than decade. LMG
* Introducing contract certainty.
* The introduction of electronic
claims processing that has more
than halved the end to end transaction time for the average claim
* Improvements to our premium
processing that have reduced
settlement time by more than
Seeking to be more efficient is an
ongoing process; modern markets
need to continue to adapt if they
are to continue to survive. London's
modernization efforts are continuing
and this article explores where we
have gotten and where we might be
What we are attempting in our
modernization efforts is to deliver
change at the market level rather
than for individual firms. We want
to engineer an improved way of
working that delivers benefit to all
two hundred and fifty or so firms in
the London market and to implement
this for all of our market participants
at more or less the same time.
Historically, there was no point
in buying a fax machine unless you
had someone else to send faxes to.
Equally in our world, no one firm
could be expected to invest in building a large electronic filing cabinet
to hold all the markets claims files
and to make these available to everyone. Instead we needed to find a way
of delivering a collaborative collective
The LMG was created to solve
this issue. The LMG has representatives from the four key stakeholder
groups in the London market: the
company market insurers, Lloyd's
managing agents, brokers and the
Corporation of Lloyd's. This means
that the group can commit the market to the sort of joint investment and
action needed to drive the improvements we have required.
Part of the role of the LMG is to
set a vision for what modernization is
aiming to achieve. This is set out in
the LMG's Future Process Model.
14 | v i e w t h i s i s s u e a t | www.aamgawin.org
In our proposed new world, brokers will be able to deal with London
in the same way as other markets.
Comparable interactions between
brokers and any set of insurers will
require an identical scope of potential data content. Any shared bureau
service will interact with brokers
in a manner consistent with other
insurers-so no unique processes,
data or query types.
All interactions will ultimately
be based on international standard
ACORD XML messages, together
with their associated process 'rulebooks'; with no local variations in
terms of data or process.
Where business is being undertaken directly between carriers and
brokers, we have already started to
adopt an approach to accounting and
settlement that is the same as that
being used by some of the firms in
Europe and Bermuda.
Where business is being done
on a subscription basis, we need
to enhance our collective back
office services so that they
can work to the same
Table of Contents for the Digital Edition of WIN Magazine - Spring 2014
Cover Story: Will Technology Commoditize Your Business?
The Future of Data in London
Technology Adoption by the Numbers: Before Automating, Examine Process and People
What Appears Innovative Today Will Be Expected Tomorrow
London Market Modernization: A Continuous Path to Excellence
Lloyd’s: Behind the Scenes Toward a More Educated Coverholder
FHA Mortgages and the NFIP: Opening the Flood Gates
17 Terrific Negotiating Tips
American Jobs for America’s Heroes Campaign Makes it Easy and Free to Hire National Guard and Other Vets
In the WIN-ner’s Circle
Index to Advertisers/Advertisers.com
WIN Magazine - Spring 2014
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