Bid to streamline Lloyd's insurance contracts
The Group of Six (G6) is to look at ways to cut the number of accounting and settlement checks on Lloyd's insurance contracts in a bid to streamline the way policies are issued.
The move is the fourth and final G6 project.
At present, in order to satisfy Lloyd's reporting requirements, premiums on one risk have to be split down by the broker before being issued.
But this has been criticised for the administrative burden it can place on brokers.
Sue Langley, G6 chairman and chief operating officer at Hiscox, said: "As you can imagine, if it sometimes runs into the hundreds [of settlement checks] it is a considerable amount of work for the broker."
G6 is a group of managing agency representatives working with Lloyd's to look at making the process of accounting and settlement more efficient.
"It is just like contract checking. Why do we really need to break down accounting information in so many different ways?" said Langley.
"Other markets don't make the same demands so it is not a level playing field."
Langley also confirmed that the Lloyd's Market Association-led project on developing a single source of model wordings for the market was due to go live in August.
G6's second project on contract checking, which intends to cut the number of checks by 70% to support both contract certainty and wider process efficiency, is also due to go into pilot this month with 10 agencies, she added.
The participants will be the six G6 members and four other managing agents.
The first G6 project, peer-to-peer, which allows companies to trade electronically on a one-to-one basis, is also in testing.
Langley said: "The new challenge from now until December is to get it to go live in the industry."