Leadership, Knowledge, Solutions…Worldwide. Electronic Endorsements Pilot Roger Oldham Head of...

Leadership, Knowledge, Solutions…Worldwide.

Electronic Endorsements Pilot

Roger Oldham Head of Market PracticeCentral Management

It’s not complicated

Marsh—Leadership, Knowledge, Solutions…Worldwide. 2

E-Placing Support – Is it such a big ask?


Support, not replace

ELECTRONIC PLACING DATA EXCHANGE


What is this project all about?

Simple

The electronic transfer of contract change data between the broker and underwriter using ACORD Standards, via a central validator.

What is this NOT?

The removal of face to face broking, where it is perceived by a broker or underwriter to be adding value


Where did we start?

Assessing the options available:

Use of a platform

Build own system from scratch, complete with gateway

Enhance existing system to ACORD standard specification

Marsh starting with existing e-placement foundations

Lotus Notes E-Endorsement Database Facility

Broker 21

Eurotrade


The E-Messaging Flow

MARSH

THE EXCHANGE

UNDERWRITER

TRI SYSTEMS

PLATFORM

ACORD STANDARD


Practical steps in getting started

Internal

Put together business case – identify benefits

Create a project plan with clear milestones

Get senior level sponsorship

Make decision on technology to be used

Identify key stakeholders within business

Create a project team – meet weekly

Allocate set responsibilities within that team

Decide on mode of communication internally

Pick pilot area

External

Establish firm links with Market Project Managers

Understand the project scope and deliverables

Participate in relevant Market committees

- EMG, MAT Group, PSIG, PSG

Work closely with IT service providers

Form working partnerships with underwriters

Manage external expectations and comms


Route to implementation

Testing:

Connectivity

- Are the simple messages getting through?

- Can underwriters respond?

Market Acceptance Testing 1 & 2

- Using agreed Market scripts

Business Scenario Testing

- Identifying, with practitioner input, the most appropriate trading scenarios


A journey of discovery

What we found:

MAT1 - some of our underwriting partners were not following the scripts

- some underwriters only had one person responding

- we had to completely repeat MAT1

- underwriters could respond without GUA instructions

- underwriters able to enter narrative with an unconditional acceptance

MAT2 - If a Word version of the EMRCE was attached, underwriters could amend

- Leader could say “no” to notifying contract changes to follow markets

- It was possible to send a message without an accompanying document

- Will be important to ensure contact names and email addresses updated


Hurdles to jump

Exchange governance

Exchange Terms & Conditions

Internal IT Security

IT supplier contract

Interchange Agreement

MAT/BST

Platform updates made available by 1st October

Availability of internal resource

Cultural resistance


Market Status – E-Endorsement Pilot

All Managing Agents are now connected to the Exchange

38 of these MA’s are involved in the endorsement pilot

21 brokers are connected the Exchange

19 of these brokers are involved in the endorsement pilot

13 IUA companies are connected to the Exchange

9 of these companies are involved in the pilot

A series of practitioner workshops has been delivered – 350 attended

All questions from these workshops have been answered – LMA website

Message volumes on Exchange growing –

1,100 live placing messages

11,000 supporting messages


Next steps

Proceed with a thorough programme of Business Scenario Testing

Go live by 1st October 2010 in pilot classes, or earlier if possible

Work with trading partners to ensure service levels are maintained

Ensure there is a clear programme of internal and external communication

Ensure readiness to start rolling out to other classes of business in 2011


Final thoughts

This is not simply about the electronic transfer of contract change messages

It’s the start of a much needed process improvement programme

If we get this right, many of our post placing administrative problems will also be reduced

The keying of risk data only once, sees the start of our desire to achieve STP

This in turn brings about the potential for one data set being used not only for placing and contract changes, but for premium and claims processing also.

It’s not complicated

Leadership, Knowledge, Solutions…Worldwide.

This PowerPoint™ presentation is based on sources we believe reliable and should be understood to be general risk management and insurance information only.

Marsh Ltd. is authorised and regulated by the Financial Services Authority for insurance mediation activities only.

© Copyright 2010 Marsh Ltd All rights reserved

Leadership, Knowledge, Solutions…Worldwide. Electronic Endorsements Pilot Roger Oldham Head of...

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