Back office expert seeks to exploit new wording proposals

Xchanging is preparing to exploit proposed changes to the way in which policies are issued at Lloyd's by offering an outsourced service to managing agents.

Under proposals announced by Lloyd's new chief executive Richard Ward, managing agents will be given the responsibility for checking policies or outsourcing the task to a "suitable service provider" (see box).

The move is intended to cut the number of checks, currently administered by Xchanging, by approximately 70% to support both contract certainty and wider process efficiency.

Martin Elton, managing director of production at Xchanging, said: "We are confident we have a unique construction of relevant and skilled staff and we are looking to offer our services to the market to assist in the challenges that contract certainty presents."

Xchanging launched its Express Check Service in November and recently opened a box at Lloyd's to support that service.

Chaucer chief executive and Lloyd's deputy chairman Ewen Gilmour said: "It will have to be a faster service, but [Xchanging] ought to be in a good position to provide that.

"These changes are not designed to do them any harm they are designed to speed the process and help achieve contract certainty, and if Xchanging rises to the challenge then that is absolutely great."

The changes, which originated from work carried out by Lloyd's leading managing agents G6, the LMA and Lloyd's, are expected to be piloted by G6 members between June and October.

Jonathan Matthews, Beazley Underwriting risk manager and G6 project leader, said: "This is a ground-breaking proposal which will revolutionise the way insurance contracts are checked and placed."

The LMA said it had been carrying out an exercise to identify the market's view on the future model for checking, producing and issuing contract documentation.

It said its conclusion matched Lloyd's proposed model.

Lloyd's proposals

  • Publish a simple set of checks which must be completed before the contract is entered into
  • Allow each managing agent to perform the checks itself or to place reliance on the leader or a suitable service provider
  • Facilitate immediate issue of the contract; at minimum to produce and issue a client copy within 30 days
  • Allow managing agents and brokers to agree on the branding of the client copy provided it includes agreed Lloyd's branding.