Market Processes newsletter March and April 2012

Welcome...

Welcome to the latest market processes newsletter which has a particular focus on the work market groups do on your behalf. All these groups are interested in your views to help them represent your interests. If you want to get more involved, see the panel on the right.

Did you know?

That over 26 managing agents – around half the total number – are represented on the various LMA groups involved with market process work?

Naturally people come and go and opportunities often arise for new participants. The skills and expertise required varies according to the group and task in question. Participation may be driven by an individual’s interest in being involved in activities wider than their own agency. Alternatively, managing agents may decide they wish to raise their firm’s profile through a visible contribution to market activities or to be better informed or to influence events. Whatever the reason, if you might be interested in any future opportunities please let Rob Gillies know by email or on (020) 7327 8377.

Role of the Associations' Administration Committee (AAC) and its related groups

The Associations' Administration Committee (AAC) and its related groups are responsible for ensuring that Xchanging Ins-sure Services (XIS) operates the Insurers’ Market repository (IMR) in accordance with IMR Agreement signed by managing agents, and for the client side management of the delivery of the 'Finish What We've Started' (FWWS) programme on behalf of the London Market Group (LMG).

As a result of this activity, the past five years have seen significant reductions in paper being moved around the market through the introduction of the IMR to support premium processing and claims agreement, with work ongoing this year to enable “straight through processing” of premium data via the E-Accounts programme.

Associations' Administration Committee (AAC) Activity Report

Simon Cooper, chairman of the AAC, has recently published a letter and report updating the market on the progress and activities of the AAC. In addition, Simon also presented at the recent LMG Forum.

Ensuring our system's infrastructure is fit for purpose

We all know that premiums are the lifeblood of the market and claims payment is what our policyholders buy. The responsibility for making sure our systems infrastructure if fit for purpose to support these goals falls to the Accounting & Settlement (ASUG) and Electronic Claims File (ECFUG) User Groups respectively. These groups consider proposed changes to the systems and, subject to appropriate business cases, make recommendations to the AAC regarding changes to the premium and claims systems that will further benefit the market. You can find out more about the ASUG and ECFUG on the LMA website.

The Messaging Exchange Limited Annual Report

Another vital piece of the market infrastructure jigsaw is The Exchange, the messaging hub that supports the sending and receiving of ACORD standard data messages between counterparties in the London insurance market. The Message Exchange Limited (TMEL) was established to own and operate The Exchange and is jointly owned by the three Market Associations – LMA; International Underwriting Association (IUA); London and International Insurance Brokers’ Association (LIIBA) - and the Society of Lloyd’s. TMEL’s role is to manage the provision of The Exchange service to meet the operational requirements of its customers and the ambitions of its members, and to provide a trusted electronic messaging hub to the insurance market. It aims to ensure a seamless, reliable and uninterrupted messaging service to the insurance market, a cost effective method of facilitating the exchange of data between insurance business partners, and a trusted utility service that boosts insurance market competitiveness. TMEL has recently published its first annual report to the Market. In addition, Kirk Maddern of Liberty, the LMA Board member on TMEL, also presented at the recent LMG Forum.