With

LMG Secretariat

LMG ForumJuly 2011

Christopher Croft, LMG Secretariat Steve Spicer, MillerBent Isachsen, BeazleyRob Gillies, LMA

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Agenda

• Modernisation update

• eEndorsements – a formula for change…?

– Steve

– Bent

– Debate

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

ECF2 Current Status 26 July 2011

Claims Workflow Triggers (CWT)

• 17 carriers receiving live messages• 5 fully integrated into own workflow• Other carriers to join by arrangement with Xchanging

Claims Agreement Services (CAS)

& Single Sign On (SSO)

• CAS & SSO are live• 7 carriers plus XCS using in production• Rollout in progress with Atrium and Taurus going live

during August.

Document File Viewer (DFV)

• DFV is live• Documents are being processed online• Rollout in line with CAS & SSO schedule

Claims Workflow Services (CWS)• Service Deployed to production• Travelers, Faraday and Chaucer live this week • Full rollout begins in August

• MAT under way for ECF001, ECF002, ECF003, ECF004, ECF005 and LADD

• Baselined plan in place and being delivered• Rollout due to begin in September.

Claims Data Warehouse (CDW)

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

eAccounts

eAccounts Release 1B (R1B)

Miller continue with live operation and have been joined by Price Forbes, UIB and Guy Carpenter.

Aon are testing prior to implementation

Lockton, Ropner, Towers Watson & Cooper Gay have begun testing this week.

eAccounts Release 2 (R2)

Analysis of implementation options for the full R2 service has been completed

The Market team and Xchanging are working together to produce a viable plan to deliver.

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New MR C version

• New version coming – version 1.4

• Release later in the summer for implementation by 1st January

• Guidance changes only – no changes to headings anticipated

• Principal changes

– Nonadmitted and Reinsurance Reform Act and changes to surplus lines regulation

– Guidance to reflect usage of Lloyd’s pilot claims scheme

– Some other minor changes to guidance to align different MRC standards (open market, binder etc) and for clarification

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Non bureau progress

• Pilot implementing

• Communications across the market in the autumn – including September Forum

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Autumnal cheer

• Coverholder Technology Forum 29th – 30th September (www.lloyds.com/coverholderstechnologyforum)

• Insurance Technology Congress 11th – 12th October

• Xchanging Conference 9th- November

• Barnabas Hurst-Bannister IIL Lecture 22nd November

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Questions?

www.miller-insurance.com

Miller Insurance Services Limited is authorised and regulated by the Financial Services Authority

eEndorsements – a Formula for Change?

Steve Spicer

July 2011

www.miller-insurance.com

www.miller-insurance.com

“The one unchangeable certainty is that nothing is unchangeable or certain”

John F. Kennedy

www.miller-insurance.comStrategic Aims

• Improve client service

• Increase efficiency

• Reduce errors

• etc.

www.miller-insurance.comTactical Reluctance

• We’re too busy

• We don’t do it like that

• We tried that once before

• Suspicion of ‘real’ motives

• etc.

www.miller-insurance.comTransformation…

As Is… …To Be

www.miller-insurance.com

“Our wretched species is so made that those who walk on the well-trodden path always throw stones at those who are showing a new road”

Voltaire

www.miller-insurance.comA Magic Formula?…

www.miller-insurance.comThe Magic Formula?…

Ch = V x P x D > R

Beckhard & Harris Change Equation

www.miller-insurance.comBeckhard & Harris Change Equation

• Change occurs when

• Vision – the ‘what’X

• Practicality – the ‘how’X

• Dissatisfaction – the ‘why’>

• Resistance – the ‘why not’

www.miller-insurance.comApplying the theory…

• Vision• Exploit modern technology to improve efficiency

whilst supporting Market strengths

needs

• Local context• Active (vocal) support from business leaders• Key users in the project team who want it to

happen

www.miller-insurance.comApplying the theory…

• Practicality• Lots of Market work on process• Technology solutions are out there

BUT

• Technology by itself is not enough – needs process and organisational change as well

• Integration of messaging into the workflow is essential for achieving significant benefits

www.miller-insurance.comApplying the theory…

• Dissatisfaction vs. Resistance• Broker value is in negotiating, not in transporting

straightforward admin• Regurgitating paper and re-keying into multiple

systems is highly inefficient and error prone• How can client service be improved if we don’t

know how long it takes to agree an endorsement?

www.miller-insurance.comSo, is that sufficient?

www.miller-insurance.com

Ch = V x P x D > R

Variable resistance

www.miller-insurance.comA new variable…

Ch = V x P x D x 3P > R

www.miller-insurance.comThe 3P’s…

• Patiencebecause mistakes will be made by all parties

• Pragmatismbecause the process doesn’t work in all situations

• Perseverancebecause this change is achievable!

www.miller-insurance.comRelative success?

www.miller-insurance.comBenefits

• Reliance on brokers operating only in box hours removed

• Agreement process now spread to 25 technicians• Endorsements agreed, notified and advised to

client more quickly than paper process• Technician’s job enhanced• We know how many WIP endorsements we have• We know who’s got them• Better audit trail• Reduced paper

www.miller-insurance.comWhere next?

• Marine nearly BAU• Marine 70% of our total endorsements but only

25% of users• Joining in on PI• High % of non-complex in Marine – process

improvements will help other classes• Looking for Big Bang for the rest…March 2012

www.miller-insurance.com

“To achieve great things, two things are needed – a plan and not quite enough time”

Leonard Bernstein

LMG Forum - 27th July 2011

Presented by Bent Isachsen

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•BPDA (Business Process Design Authority)

•Electronic Endorsements 1st July– Beazley’s experience

Topics

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• Governance group started December 2010

BPDA – Business Process Design Authority

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• Tasked with solving any issues raised from the electronic market endorsement initiative

• What we are not

oWe do not decide the roadmap or when things should be implemented

BPDA – Business Process Design Authority

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• Beazley added about new 30 underwriters

• We provided light touch training sessions

• Expectations of volume

• As anticipated we had a slow start, but this is starting to pick up.

1st July - 3 new classes

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