Had this blog been written a year ago, there is no doubt that the London Market's success in meeting, indeed exceeding, agreed contract certainty targets would have been prominent. However, one year later, contract certainty has become business as usual. It is an automatic process in the placement of a risk in London and has therefore created a more efficient and beneficial marketplace for all concerned. Contract certainty has also contributed to better governance and disciplines within each regulated firm which enable effective management of operational risks in individual businesses.
IUA and its members have worked diligently to contribute to the market's achievement. A market solution was requested and the whole of the market has delivered. With contract certainty embedded and looking to be replicated by other markets, we have increased our focus on other reforms such as electronic claims files, international message standards and electronic policies. This is essential to further instil confidence in clients that London is the market of choice.
Many of our members have continued their involvement in our reform committee structure, albeit with the term "contract certainty" being dropped from the committee's names. For example with a wider remit to consider our Contract Certainty Implementation Steering Group is now a Market Reform Implementation Steering Group.
Contract certainty must never be forgotten and firms must not get complacent - FSA will ensure this doesn't happen. There are still some legacy contracts to address but even this area has seen tremendous progress during 2007 with day one volumes more than halved. Quality of contract must not be prejudiced for speed and efficiency but there is no doubt contract certainty is now part of the London Market's culture.
And so that leaves me to wish you all a Merry Christmas and a Happy New Year.
