E-Policies: Faster with fewer dead trees
Mark Barwick, Project Manager, LMBC
Agenda
1. Types of evidence of cover
2. What language in the slip triggers EOC?
3. Scope of e-policies
4. Before using e-policies
5. E-policies submission & signing process
6. Benefits of e-policies
7. MRG Targets and milestones
8. Flyer to be inserted into all paper policies
9. Example e-Policy
10. Further Information
11. Questions
Types of evidence of cover
•
•
Original evidence of cover
– Contract document
– Broker Insurance Document (BID)
– Policy/ E-policy
– Certificate (Binding authority only)
Contract changes
– Contract change document agreed by insurers (MRCE)
– Policy Endorsement/ addenda
– Contract change document finalised by broker (with BID
status)
What triggers evidence of cover
•
•
•
•
Contract Document:
– INSURER CONTRACT DOCUMENTATION heading in RISK DETAILS
section of MRC specifies “This document details the contract terms
entered into by the insurer(s), and constitutes the contract document”
Policy:
– INSURER CONTRACT DOCUMENTATION specifies “XIS to sign
Lloyd’s policy and/or XIS to sign Company policy.”
– Wording must be attached, or clearly referenced, when insurers commit
to contract
E-policies
– INSURER CONTRACT DOCUMENTATION MRC heading specifies
“XIS to sign Lloyd’s policy and/or XIS to sign Company policy, which
may be in electronic format.”
– Broker has registered for E-policy. No special instructions on the
PCF/Work Order requesting a paper policy
Broker Insurance Document (BID) may optionally be used by broker
Scope of e-policies
In-Scope
• Covers marine, non-marine and aviation
• Insurance and reinsurance
• Direct, facultative and excess of loss
• “S&A” or “Policy only”
• Policies, policy endorsements and slip policies (companies only)
Out of Scope
• Policy endorsements where the original policy was on paper
• Policy requests by renewal receipt
• Binding authority wordings
Before using e-policies
•
•
•
•
•
•
Broker must complete required registration form
Broker must be an existing user of A&S, either Direct Load or DRI
Adobe Acrobat Reader (version 5 or above) must be installed to
allow brokers to view the e-policy
Determine what central email address you want the signed e-policy
to be sent to
Consider whether you want to tell your clients about the change
Train your policy technicians in Direct Load or your DRI solution
E-policy submission process
•
•
•
•
•
Ensure your MRC makes it clear you require a policy, and the
policy is attached to the MRC when placed.
Submit a word/PDF copy of wording via A&S as part of work
package
Ensure Work order specifies either a “Policy Only” submission or a
“Premium and Policy” submission.
Ensure a Policy Control Form is completed and present in work
package
If the (re)insured has specifically requested an embossed policy
then specify a paper copy is required on the Policy Control Form
E-policy signing process at Xchanging
•
•
•
•
Xchanging sign the policy electronically and apply an electronic
seal to the document, similar to the embossed seal found on paper
policies.
Xchanging load a copy of the signed policy to the UMR folder of
the repository with a document type of “Signed Policy”. The
submitting broker and the participating insurers can all view the
document.
Xchanging email a copy of the electronically signed document to
the central email address provided by the broker when they
registered for e-policies.
Brokers may send the e-policy to their client electronically, or
where the client preference is for paper this may be printed and
sent on as a paper document
Benefits of e-policies
•
•
•
•
Faster turnaround time since document is sent/received much
quicker allows brokers to meet their contract certainty obligations
Reduction in paper handling costs
Still allows a paper policy to produced where local regulation
demands it
Electronic record of policy held in the repository for subsequent
processing and claims
AND
SAVE TREES!
Brokers registered as at 25th June 2008
• Alec Finch (London)
Alwen Hough Johnson
ARB International
BDB Ltd
Benfield
BMS Intermediaries
Bowood Partners Ltd
Chesterfield
Citynet Insurance
Cogent Resources
Connor Hale Kerslake
Contractsure
Cooper Gay
EBA (European Brokers
Associated)
EPG Insurance
Gina Fitzgerald
•
• Glencairn
Grosvenor Brokers
Guest Krieger
Guy Carpenter
HBA Ltd
Heath Lambert
Houlder Ins
Howden
HSBC
Integro Group
James Hamden
Jardines
Jonh Holman & Son
Lark Insurance
LMIB
Lonsdale
Lothbury UK
Lucas Fettes
Marsh
Millers
Newman Martin & Buchan
Paul Napier
Price Forbes
Priest &Co
Prime Professions
PWS/THB
R K Carvill
R K Harrison
R L Davison
RFIB
Robertson Taylor Insurance
Safeonline
Senior Wright Ltd
Tyser &Co
Willis
2008 Volumes to date
Electronic Policies: Market take up
90%
3000
80%
2500
70%
60%
2000
50%
1500
40%
30%
1000
20%
500
10%
0%
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Total policies signed
Electronic policies signed
Electronic proportion
Monthly interpolated target
Dec
Broker name
vo
ARB
Grosvenor
Price Forbes
Cooper Gay
HSBC
Benfield
300
250
200
150
100
50
0
Newman
Priest &Co
R K Harrison
Paul Napier
Integro
JLT Risk
Marsh
Willis
Number of e-policies
Biggest users of e-policies
E-Policy usage May 2008
Series1
MRG targets and milestones
Milestones and targets
Date
Xchanging insert flyers into every paper
policy submitted
Anonymised Monthly reporting commences
July 2008
August 2008
Cut off date for all brokers to be registered.
Start Q3 2008
Name and shame brokers not registered
September 2008
MRG target 80% of all policies electronic
December 2008
Name and shame monthly reporting
commences
Q1 2009
Market
•
•
From July 2008 all paper policies
received from brokers will have
this flyer inserted into the
documentation before it is
returned to the broker
Similar approaches have proved
successful for other reform
initiatives such as A&S usage
and adoption of new slip
standards
THE MRG HAS SET A TARGET THAT 80% OF ALL
POLICIES SHOULD BE ELECTRONIC BY Q4 2008.
40 Lloyd’s brokers are using the service and 20% of all policies are
prepared on this basis. Your paper policy has been signed, but you
need to act now and register for e-policies so any future
submissions may be e-policies.
To
find
out
if
your
firm
is
registered
check
www.marketreform.co.uk UPDATE LINK ONCE DATA IS THERE
Scope of E-policies
1
All policy requests submitted via A&S, either Direct Load or DRI, where
the INSURER CONTRACT DOCUMENTATION heading in the MRC
specifies a policy will be produced
2
All policy endorsements or addenda also submitted via A&S.
Summary of process
1
2
3
4
5
6
Ensure your MRC makes it clear you require a policy, and that the policy
is attached to the MRC when it is placed.
Submit a word or PDF copy of your wording via A&S, flagging the work
order as either a “Policy Only” submission or a “Premium and Policy”
submission. A Policy Control Form needs to be included CHECK WORK
ORDER TERMS
Xchanging sign the policy electronically and apply an electronic seal to
the document, similar to the embossed seal found on paper policies.
Xchanging load a copy of the signed policy to the UMR folder of the
repository with a document type of “???”. The submitting broker and the
participating insurers can all view the document.
Xchanging email a copy of the electronically signed document to the
central email address provided by the broker when they registered for epolicies.
Brokers may send the e-policy to their client electronically, or where the
client preference is for paper this may be printed and sent on as a paper
document
Exceptions
Once registered for e-policies it is still possible to request a paper policy
in exceptional circumstances such as where local regulation requires the
client to have a paper policy. For further details refer to the User Guide.
Other Contract documentation
These guidelines relate to instances where a policy is still required. This
does not mean a policy is required for all contracts. The MRC
Implementation Guide contains details of the “Contract Document” which
may be issued as an alternative. For further information refer to the MRC
Implementation Guide.
Further Information
The MRO website contains a User Guide for e-policies and a copy of the
registration form as well as a FAQ. For further information contact:
LMBC
Xchanging
Mark.Barwick@lmbc.co.uk
Michael.Langston@Xchanging.com
020 7397 0207
01634 887 662
Further Information
The following documentation is available from the Market Reform
website:
– Xchanging E-policies User Guide.
– List of brokers who have signed up for E-Policies
http://www.marketreform.co.uk/PI_P_ElecPol_Brokers.htm
– Specimen E-Policy
– Frequently asked questions document
– E-Policies broker registration form
To view or download these documents go to:
www.marketreform.co.uk
For further information contact:
Mark.Barwick@Lmbc.co.uk - 0207 397 0207 or
Michael.Langston@Xchanging.com - 01634 887 662