The London market has made significant progress in meeting its goal of reforming business processes during 2007. In respect of accounting and settlement, 2007 saw an increase from 20% up to 70% of original premium submissions being processed electronically via the Insurance Market Repository. Secondly, with regard to electronic claims files adoption was reported to have risen rapidly during 2007 with approximately 88% of in scope claims and 75% of all claims now being handled electronically. In the company market, 24 firms are now up and running and accepting claims electronically. Finally, with regard to contract certainty legacy both Lloyd's and the company market are substantially ahead of the 2007 target, having reduced the backlog to less than 40% of the volume measured in mid-2006.
The new chair of the MRG, Steve Matanle, has set out the group's priorities for 2008, with the first being to complete the three key reform workstreams. The 2008 target for accounting and settlement is for all firms to submit all orginal premiums electronically by the end of the first quarter. For electronic claims the aim is to complete take-up by the end of the first quarter for Lloyd's in-scope new claims and across the London market by the end of the third quarter. The target with regard to contract certainty legacy issues is to reduce the outstanding volume to below 20% of the original volume.
Other priorities for 2008 are to increase substantially the market's ability to exchange structured electronic data to support the insurance process; moving to e-placing for all risk placements and amendments in the London market and the full adoption of the new market standard for contract changes - the Market Reform Contract Endorsements (for more details on the Market Reform Contract Endorsement see our blog entry dated 17 January).