I have been in many meetings recently to discuss the scope, timetable and cost of finishing existing market reform initiatives. These meetings make you realise how far we have come but also how much there is still to do.
Currently our process changes and increased use of technology / data standards are all well advanced and, given the complexities of our marketplace, ahead of anywhere else in the world – at least this is what I believe.
When one talks to senior executives who also manage non-London operations, this belief of mine seems justified, therefore it would be great to see more commentators refraining from beating London up but being positive about London’s use of technology. Of course, to do so, one needs some facts rather than anecdotal comments. Looking at premiums, the market’s repository utility (which has been operational for nearly a year), now receives 80% of all premium submissions electronically (approx 800,000 transactions). These premiums are now able to be processed quicker and prioritised by value meaning that cash flow has improved, credit risk reduced and working capital released. Last year 12% of premiums by value were processed within three days of receipt, now its 65% of value.
Policies checked by Xchanging are now electronically received and delivered back to brokers. Paper policies are now an exceptional special request.
Perhaps most encouraging is that there are signs that the new processes are enabling underwriters to receive more premium by the agreed payment date. Whilst more improvement is still necessary the statistics seem to be getting better as electronic submissions enable more timely, accurate and quicker processing.
One last set of statistics; the repository is receiving over 45,000 messages a week (premiums and claims) from 5,800 registered users. There were close to 6 million documents stored and over 37 million web page hits in the first quarter of 2009. If anyone can show me comparable statistics for a marketplace of 250 organisations handling every type of insurance or reinsurance, I would love to see them.
We must not get complacent, there is still much to do on claims functionality and adoption of international data standards although recent technological changes in these areas are happening but not mentioned here (ie. ECF). Perhaps an appropriate form of beating for London should be a gentle pat on its back. Mr Grace would have said “you’re all doing very well” and our clients are being served better.