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Electronic Support for Endorsements
One of the major aspects of the market’s drive to adopt electronic processes to support placing is in the area of endorsements. This is part of the London Market Group’s (LMG) wider sponsorship of the use of electronic processes to support business placement. It builds on previous related work such as the introduction of the Market Reform Contract Endorsement (MRCE) format and the transaction of MRCE by email (eMRCE) and exploits work by individual firms and the messaging Exchange launched by Lloyd’s in 2009.
The ultimate objective of this work is for all endorsements in the London market, irrespective of complexity, to be submitted and agreed electronically using data messaging. Importantly, this does not preclude negotiation between broker and underwriter, whether face-to-face or by other means.
Endorsements Pilot - coming to a screen near you
The project is progressing through a pilot, focussing on several marine classes, during the second half of 2010 and which is expected to roll out across other classes in 2011. The pilot will confirm that electronic processes can be used effectively and will enable underwriters and brokers to get experience of the benefits offered by the use of such processes. Following the market achieving technical readiness on 1 June the timetable for implementation provides for a start date of 1 September for a vanguard of firms ready to trade live endorsements and a latest readiness date of 1 October 2010 for all firms participating in the pilot.
There is a high level of market commitment to the project including:
The pilot is based on direct marine hull, cargo, war and liability business. This is more fully defined in the project Implementation Guide. A market group, the Endorsements Management Group, is responsible to LMG for delivery of the project and will evaluate the pilot against critical success factors as input to the recommendation regarding roll out to remaining classes. The electronic process is two-way, involving submission of the endorsement by the broker and the underwriter providing one of a number of possible responses. Negotiation can take place if necessary but the ultimate agreement is by electronic message and not by ‘ink on paper’.
For more detailed information please follow the links below.
Market Project Contacts
A full list of contacts within participating firms was included as an appendix in the version of the Testing Strategy document sent to individual firms. To protect the data this list will not be published on this website but to request a copy of the list, please email us. The list will only be sent to email addresses at managing agents, insurance companies and brokers participating in the project.
Further Information
We maintain a distribution list for electronic placing communications. To be added to this list, please email us including your first and last name, your organisation's name, your job title and your telephone number.
Project managers, suppliers and other individuals working to deliver electronic endorsements within market firms are welcome to attend weekly project surgeries. Details of these have been circulated by the Exchange Team at Lloyd’s or are available from paul.willoughby@lloyds.com. For the moment, these surgeries have replaced the previously planned monthly briefings.
For specific information about electronic support for endorsements, please contact:
Peter Holdstock on 020 7327 8383 or at peter.holdstock@lmalloyds.comor
Rob Gillies |
