A crackdown on those using LMP slips incorrectly is on the cards, says Michael Faulkner
C minus, could do better. If Dr Iain Saville were writing the mid-term reports on managing agents' use of LMP slips there would be little to praise and plenty to criticise. Saville, the head of Lloyd's business process reform, and chief executive Nick Prettejohn are becoming increasingly frustrated at the market's poor performance with the slips.
Only one in eight are correct in terms of the slip headings, and only one in 13 reach acceptable standards in relation to content. "It's just not good enough," one can almost see Saville scrawling in red pen over the market's report cards. The market thinks it has done better than that, claiming one in three are correct, but these protests are falling on deaf ears.
Saville and Prettejohn are now looking for a more Victorian approach to managing agents' LMP education. Corporal punishment is set to be be the order of the day, with the debate among the franchise board focusing on naming and shaming offenders, or the more brutal financial sanctions.
Franchise performance director Rolf Tolle and Saville could well be reaching for their canes in the coming months.
The other major subject on the Lloyd's process reform curriculum is Kinnect. Saville is keen to persuade the market that it is not a tool to squeeze the brokers out of business.
Many will still be wary that only two brokers, Willis and Marsh, are currently signed up to the system. The same can be said of the managing agents as well. Only four are using Kinnect at present. New partners are due to be announced later this year and the market will be watching their progress with great interest.
Saville does shirk from saying that when it comes to Kinnect the learning process will not be an easy one. But if the connectivity platform is ever to realise the potential that Lloyd's sees in it, Saville will want to make sure the market learns fast.