In a letter to his constituents, Dane Douetil, Chairman of the Market Reform Group (MRG), offered congratulations on the market�s successful delivery on the 2006 contract certainty targets and outlined key elements of the 2007 reform plan.
2006 was a successful year for reform: much was achieved with the delivery of the major initiatives of contract certainty; the electronic claims file (ECF); and the introduction of electronic standards for both trading and accounting and settlement.
Contract certainty in particular was a major achievement, requiring all firms to engage in a significant cultural and behavioural change. Contract certainty has reinforced the UK�s competitive position. Its delivery is an excellent example of a solution by the industry for the industry to a regulatory challenge.
The question is no longer should we reform, but how best to achieve reform as rapidly as possible.
At the heart of the vision is a much greater focus on electronic processing, aiming for all risk submissions, claims and accounting and settlement to be handled electronically within three years.
The top priorities for all market firms in 2007 should be:
- continuing to embed contract certainty into day-to-day processes as a matter of course, and reduce the number of Legacy policies in the market contracts where appropriate evidence of cover has not been issued; and
- increasing use of the Insurers� Market Repository, so that all new claims and most accounting and settlement submissions are processed electronically by the end of the year.
The reform plan sets out very clearly how we intend to build on the successes of 2006, and win more profitable business for London, by continuing to make the market more efficient, cost-effective, and competitive.
For full text of the letter, see http://www.marketreform.co.uk/Documents/Home%20page/DDLettertoMarket20070301.pdf and for progress update, http://www.marketreform.co.uk/Documents/Home%20page/Progress_report050307.pdf
The Market Reform Group (MRG)is the senior market-wide body responsible for overseeing and driving process reform in the London Market. for more information, visit www.marketreform.co.uk.