Slip quality has improved since the use of the LMP slip was mandated at the beginning of 2004, said Lloyd's.
In its first report since the change was implemented, Lloyd's said slip quality had improved to 83%, up from 70% last year.
The full report is available for download from http://www.lmp2001.com/Publications/pubdetail.asp?article=227
The main findings of the report were as follows:
· the balanced scorecard assessment shows that the typical slip is 83% compliant - a considerable improvement from the 70% level indicated by research conducted last year;
· there are no “hot spots” in terms of either slip content or particular firms, in relation to compliance;
· the vast majority of slips are structured in line with the LMP standard; and
· the LMP Programme Office research suggests that only 13% of slips are 100% compliant. This is a considerably lower figure than indicated by self assessment checks, and needs to improve
Lloyd's head of business process reform Iain Saville, said: “The quality of slips has improved since last year. But there is still a long way to go, and we are considering how to ratchet performance up, by improving the timeliness and coverage of reporting so that market users can be given more rapid feedback, including performance tables.
“The use of the LMP slip is an important step in improving contract certainty and in documenting contract terms important for processing efficiency. These results suggest that there are no grounds for complacency.”
Lloyd's said the LMP Programme Office would use the results of the report to help identify the causes of non-compliance.
It has issued individual reports to larger brokers and managing agents on their individual performance in a move designed to improve future performance.
