We asked: is Lloyd’s and the London market is modernising quickly enough?
Lloyd’s Market Association chief executive David Gittings:
“ECF [electronic claims file] provides a 53% quicker settlement of claims to customers. Use of the Insurers’ Market Repository results in faster settlement of premium to insurers. Electronic accounts, now live, will introduce further improvement, and future releases will make the market more accessible and cost effective for brokers to deal with.
“We have already agreed over 17,500 endorsements electronically and nearly 90% of firms expect to secure benefit from electronic support for endorsements once the process becomes business-as-usual. These are just some examples of what has been achieved during the last few years in a market of over 250 independent stakeholders against a background of challenging financial conditions and regulatory change, and represents a significant success.”
Oxygen Insurance Brokers partner Hugo Gibbs:
“Evaluating the modernisation in Lloyd’s is difficult given we have little or nothing to compare it with. In comparison with other insurance/reinsurance hubs, the speed of change in the London market sets a benchmark for the rest of the global marketplace. It is the London market initiatives that are mirrored elsewhere around the globe. But relative to other financial sectors, we remain far behind.
“Each year has brought change and we are now transacting a greater proportion of premiums and documentation electronically. E-trade in itself is not the endgame, though – it has to be reducing the costs of procurement while maintaining the centre of excellence. It would be unfair to say that our failure to keep up with other sectors is a result of a lack of effort – more perhaps a reflection of the nature of the business itself.”
Colin Smith, syndicate operations manager for Syndicate 3210, Mitsui Sumitomo Insurance Underwriting at Lloyd’s:
“The Lloyd’s and London Market modernisation programme has provided focus and attention to resolving key barriers encountered in past efforts to modernise. The implementation of electronic claims files and electronic endorsement agreements should be seen as two key milestones that demonstrate how the market is changing its core processes and systems.
“The pace of change is slowly bringing the London market forward but, with so many legacy systems and service providers, reform will continue over a number of years.”
RFIB head of information technology Mark Kinsella:
“In my working life at Lloyd’s, there have been many changes. The use of PCs to produce documentation, the changing formats of slips, the use of bureau signing messages; ELASS through to electronic claims; modelling data, electronic accounting (as pioneered by Swiss Re/SCOR and so on) all point to an industry that has changed.
“But it is also true that the front end of our business is reluctant to change things that alter the unique aspects of the London market. That has been an inhibitor: too often we see something that is really a process as a value-added service and therefore we resist changing it.”