Electronic Support For Endorsements
Following the rollout to all classes on 5 March 2012, the Electronic Endorsements project recorded its most successful month for volumes submitted. Over 3600 endorsement requests and over 4600 endorsement notices were sent during March, which is the highest to date.
Two measures, designed to encourage the continued take up of this process, were referred to in Richard Ward’s recent letters to Managing Agents and brokers. The first was to distribute the markets’ performance statistics in a fully disclosed format. The second was to publish model slip language that firms may use to encourage usage of the electronic process. Further details of these measures are set out below.
All Managing Agents will continue to receive market level reports from Lloyd’s. In addition, Agents will now receive from Lloyd’s a report detailing each Agent’s position based on message volumes as well as response times. A similar report will be obtained by IUA for their members and this will be made available to all Managing Agents by LMA. LMA will also make available a LIIBA report showing individual broker performance based on message volumes. The full suite of these reports has been loaded to the Placing Support area of the LMA website (full members will need to log on to access these reports) and they will be updated monthly as new reports are received.
Model Slip Language
The Market Associations and Lloyd’s have agreed upon the model slip language that firms may use within their contracts. This language is purely illustrative and has been established and distributed for the guidance of members, who are free to consider different conditions. However, this language may be useful for firms aligned to the London market standard for endorsements via ACORD messaging. Brokers and insurers who continue to seek return on their investment in this initiative, particularly through eliminating dual processing, may consider using this model language as another tool in achieving this goal.
The language has been suitabily worded so that it is not prohibitive to other methods of
agreement, particularly for risks with overseas or non‐aligned markets. We believe that embracing the use of this model language will assist insurers and brokers in increasing adoption across all business divisions and classes in addition to providing underwriters with the opportunity to engage with any recalcitrant placing brokers.
Whilst this language will be officially published as part of the MRC 1.5 update in Q4 2012, Managing Agents are free to use it with immediate effect if they wish.
If you have any questions relating to this Bulletin, please contact Rob Gillies on 020 7327 8377 or at firstname.lastname@example.org.