Steering group assembled to tackle third phase of reform
A steering group has been set up to implement the third phase of proposals to modernise the London Market.
The accounting and settlement steering group is chaired by Marie-Louise Rossi, chief executive of the International Underwriting Association.
The group comprises Sheree Whatley (chief financial officer, Swiss Re), Stewart McCulloch (director of service development, global operations, Willis), Bill Oram (chief executive financial director, Aon), Paul Glen (general manager, QBE), Mike O'Dea (financial director, Faraday), James Illingworth (managing director, Amlin) and London Market Principles programme office representatives Paul Tuvey and John Wingrove.
The first two market reform stages were LMP [a set of principles to modernise the London Market and make it a more attractive palce to do business in], which continues, and bureaux convergence that has been completed.
Three different models for the third phase were evaluated by the working party and the e-Closings model chosen as the most likely to benefit both brokers and insurers.
The rejected models were the e-Accounting and Settlement, and Clearing House models.
The steering group will now research further and implement the e-Closings model that will be used to speed up money flow in the market. It is hoped this will reduce costs and raise service levels.
The model includes adoption of internationally-recognised messaging standards, a common referencing structure, the use of shared document repositories and an improved process for deferred premium payment.
The next stage of the project is to determine the details of implementation, which will take until November, and a cost-benefit analysis to be carried out from October to May.
Accounting and settlement is part of the market reform programme that planned three initiatives to improve client satisfaction in 1999/2000.
See next week's issue for an in depth analysis of the new proposals and how they might work