ECF Key Messages
Market Reform
Programme
Office
Electronic
Claims
• It’s coming
• There will be pain to get the gain
• Who is your business sponsor?
• If you handle claims, the way you do
your job will change
Overall Scope
Market Reform
•
Deploys CLASS in the Lloyd’s market
– acts as a simple workflow manager of claims transactions
•
Delivers an interactive Insurers’ Market
Repository to carriers (a shared electronic
filing cabinet)
– Interactive service available to brokers subject to XIS
contract
•
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Electronic Claims
Adopts ACORD standards for the transfer of
electronic documents
– To/From brokers’ repositories (at no charge to brokers)
– To/From carriers’ repositories
LMA Project Scope
Electronic Claims
Market Reform
• Integrates CLASS and IMR
– a single electronic claims service for Lloyd’s managing
agents
– support Lloyd’s Claims Schemes
• Does NOT change CLASS for brokers
– Multiple interactive services: one for each market
– LIMCLM: operational for IUA
– defined and trialled for Lloyd’s
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IUA Project Scope
Electronic Claims
Market Reform
• 3 month pilot of Insurers’ Market Repository
– To identify any additional IUA requirements
– Expected start during Q2 2006
• Does NOT
– change IUA CLASS (Operational since 1987)
– change CLASS for brokers
• Lots to do since Lloyd’s managing agents will be live
with an electronic claims service from late Q3 2006
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LMA ECF Objective
Electronic Claims
Market Reform
• To replicate today’s file electronically
– Not a Blue Sky Claims System development
• Based on existing products
– Changes to CLASS out of scope (except look and feel)
– Work with underlying software capabilities
• Provide a base product on day 1
– To be evolved once experience gained
• Post implementation of base product
– Strategic review of on-going development
– e.g. Third Party Access
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Status today
Key Enhancements in 5 Phases
Electronic Claims
Market Reform
Phase 1 - See all documents in one view
Phase 2 - Leader control of file/improved searching
Phase 3 - ACORD DRI (receipt of documents)
Completed 2005
Phases 4/5 – Merged into a single phase
CLASS @ Lloyd’s data through GUI, full DRI and
Seamless link with documents in repository
MAT starts 15 May 2006 (35 working days to go!)
Live – mid-September
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Market Reform
Electronic Claims
Page 7
Market Reform
Screen shot – Transaction Summary Screen
Electronic Claims
Page 8
Screens are currently under development and are subject to change
Systems Processes & Procedures
•
Electronic Claims
Systems Processes and Procedures
Market Reform
– High-level guide
– NOT a systems user manual or adjusting manual
•
Workshops convened to review generic process and class of
business variations
– Confirmed generic process
– Confirmed little variation by class of business
– A key benefit was to identify operational issues
•
To be extended to include IUA
•
Review legal governance
– Interchange Agreement
Page 9
– Initiated Legal Review of Electronic Responses
Systems Processes & Procedures (cont.)
Electronic Claims
Market Reform
•
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Identify the following operational Issues (Hotspots):
– Big Issue
Resolved
– Binders
Change Request Raised
– Bulks/Blocks
Analysis in Progress
– Document Rules
Analysis in Progress
– Delegation to XCS
Change Request Raised
– M.A. Workflow
Change Request Raised
– Partial Markets
Change Request Raised
– Non Broker Triggers
Analysis in Progress
Features
Electronic Claims
Market Reform
• Broker submits claim electronically
– Enables parallel presentation to insurers
– Reduces data transcription errors
– Allow brokers to concentrate on complex claims
• Improved insurer access to information
– It’s the insurers’ file
– Concurrent access to all subscribing insurers
– 24/7 access, worldwide
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Next Steps
Electronic Claims
Market Reform
• Phase 5 delivery to MAT mid-May 2006
• Delivers first version
– of an integrated electronic claims service for Lloyd’s
– replicating existing file electronically
– with improvements where possible
– companies and syndicates can see the same claim
• Things change and we won’t have thought of everything
• There will be more issues and enhancements
– Legacy claims
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– Issues and suggestions recorded
Market Reform
Monthly Timeline
Page 13
Electronic Claims
Market Reform
Time and Budget Summary
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Electronic Claims
•
On track for software delivery to process electronic
claims across the Lloyd’s market
•
Within budget
•
Early implementation partnerships growing
•
Substantial market testing and implementation tasks
this year
•
Will change working practices from paper to electronic
for many claims practitioners
•
Will not deliver everything on day one - need on-going
maintenance and review of Change Request log
Implementation
Electronic Claims
Market Reform
• Broker-driven
– with Lloyd’s and IUA carriers and XCS
– by classes of business and risks
– MRPO monitoring progress
• New claims and their subsequent transactions
– Existing paper based claims (legacy) to be tackled later
• Early Implementations
– Using today’s CLASS and repository in parallel with the
enhancements
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– Gives early experience of electronic work and assess impact on
procedures and processes
Market Reform
Early Implementers
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Electronic Claims
•
Valuable lessons continue to be learnt from early
implementers
•
39 ECF partnerships created
– 6 brokers/17 managing agents, 2 companies – experience gathers
pace
•
Over 360 claims files
•
Generating over 600 transactions electronically to date
•
IUA Companies now actively participating in pilots – adding
to the ground swell
•
LMBC (via BEFIT) working closely with MRPO to ensure
success of project
Market Reform
Early Implementers
Brokers
Carriers
• Benfield
•
Aegis
•
Ace
Marine Hull
•
Amlin
•
AIG
Aviation Direct
•
Chaucer
•
Advent
Reinsurance
• Guy Carpenter
•
Faraday
•
Atrium
PI
• Marsh
•
Hiscox
•
Well’n
• Millers
•
Kiln
•
Heritage
Non Marine
Property
•
Limit
•
Aspen Re
Binding
Authorities
•
MAP
•
XCS
FinPro
•
St Paul Travelers
•
Markel
•
Brit
• Cooper Gay
• Willis
• Aon (waiting for full
DRI)
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Electronic Claims
Class of Business
Market Reform
Carriers Wanting to Participate
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Electronic Claims
–Allianz
–Beazley
–Global
Aerospace
–Liberty
–Munich Re
–Swiss Re
–SVB
–XL Re
–Zurich
Brokers Wanting to Participate
Arthur J Gallagher
Glencairn
Market Acceptance Testing (MAT)
Electronic Claims
Market Reform
• On schedule to start at 8am, Monday 15 May 2006
• Two drops into MAT
– Monday 15 May = Integrated IMR and Class@Lloyd’s
functionality.
– Monday 19 June = Full ACORD DRI functionality to latest
published ACORD standards.
• Same timeframe as A&S (Repository) MAT
– Aiming to test common features together
– Avoid testing the same functionality twice
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Market Acceptance Testing - high level visual
Electronic Claims
MRPO - ECF Market Acceptance Testing (MAT)
Market Reform
Week
15th
Commencing May
22nd
May
29th
May
5th
June
12th
June
19th
June
26th
June
3rd
July
10th
July
17th
July
24th
July
31st
July
7th
Aug
14th
Aug
21st
Aug
28th
Aug
4th
Sept
11th
Sept
ECF MAT – Integrated CLASS
/ IMR (without TR ref)
Vanilla
Variations
Error
ECF DRI MAT – Integrated
CLASS / IMR (with TR ref)
Infrastructure
Vanilla
Variations
Error
End to end ECF testing
End to end
process testing
Disaster
Recovery
Difficult
variations
Regression
Sign-off period
ECF
Live
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MAT participants
Electronic Claims
Market Reform
• Agreed participants:– Managing Agents include; ACE, Advent, Amlin, Beazley,
Danish Re, Faraday, Heritage, Hiscox, Limit, Markel,
Marlborough, St Paul Travelers, SVB, Wellington and XCS
– Brokers include; Aon, Benfield, Marsh, Millers, Willis (and
possibly Glencairn)
– Additional participants; XIS and MRPO (co-ordination)
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Public Commitment
Market Reform
Brokers
Committed to deliver new
claims to Lloyd’s
electronically
Aon
Benfield
Marsh
Committed to deal
electronically with new claims
Amlin
Brit
Faraday
Hiscox
Limit
Marlborough
Active support from:
Cooper Gay
Guy Carpenter
JLT
Millers
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Electronic Claims
Managing Agents
Willis
St Paul Travelers
SVB
Wellington
MRPO seeking more through
early implementers, testers
and other communications.
What should YOU do now?
Electronic Claims
Market Reform
• Assess and plan for the impact on you
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– Nominate two people: business sponsor; project manager
– How many adjusters have you got?
– How many will need access to the system?
– Can you connect to these new services?
– How will you ensure they are trained in CLASS and the
repository?
Market Reform
Future
Electronic Claims
•
Operational electronic claims by end 2006 for
brokers, Lloyd’s & IUA
•
Roll out for processing new claims will continue into
2007
– Increasing pressure on any non participants
•
This is just the “Base Camp” - foundation to:
– Migrate to ACORD business messages for claims
– Eliminate CLASS differences across the multiple systems
– Enable third party access e.g. loss adjusters
– Move existing claims from paper to electronic
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– Offer client tracking of claims
Market Reform
Summary
Page 25
Electronic Claims
•
On track for software delivery to allow electronic claims
in the Lloyd’s market using ACORD DRI
•
Early implementation partnerships growing
•
Substantial testing and implementation task this year
•
Will change working practices from paper to electronic for
many claims practitioners
•
Named brokers and Lloyd’s managing agents publicly
committed to electronic claims from Q4 2006
•
IUA coming on board
Market Reform
Contacts
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Ben Sayles
Project Manager
020 7327 6685
Ben.sayles@lloyds.com
Mike Smith
020 7327 6642
Michael.J.Smith@lloyds.com
Or….
Claims@lmpoffice.com
Electronic Claims