It’s hard to believe that this time last year we were still in the midst of a tender process to find a vendor for the Lloyd’s Exchange. Since then, we’ve achieved a lot. Having picked IBM in early 2009, the Exchange is now up and running with over 40 organisations connected. We are on target to connect 80% of Managing Agents (by capacity) and over 60% of the top 30 brokers (by premium) by April 2010. Thanks to the pilot participants, and a number of IT suppliers in the Market, we have the ‘tick in the box’ in terms of technology and the concept of electronic messaging has been proven. Pretty good going, but we’re not finished yet.
Gaining momentum
Over the last few weeks we’ve really gained momentum.
It was great to see that we were the talk of the Insurance Day Technology forum. There was a real buzz around the Exchange and the potential it has not just for placing and endorsements but across the whole risk lifecycle (we are exploring how other message types such as Accounting & Settlement and Claims could benefit from being passed over the Exchange next year). The range of connection options available now is also very encouraging; there really is something to cater for everyone – electronic messaging is firmly on the modernisation roadmap.
You may have seen the recent press release announcing that Aon, Marsh and Willis will pilot the Exchange for endorsements using version 2009.1 of the ACORD standard. The endorsements pilot, supported by the LMG and the associations, is due to start in 2010 and will essentially require all brokers and underwriters taking part to submit endorsements electronically. So far, the response to this has been overwhelmingly positive and this marks a real step forward in terms of kick starting the wider adoption and use of electronic messaging to support the face to face negotiation process. With the technology proven we now need to switch from ‘pilot mode’ to production volumes and I think the commitment we achieve around this pilot will be key a key enabler in delivering this.
On to 2010
So we have the capability to exchange data electronically. The challenge for 2010 will be to embed electronic messaging as business as usual. But this will be no easy job – breaking traditions that have become integral to the market for over 300 years is certainly a challenge. In conjunction with the LMG we will be setting some ambitious targets, but I’m confident that with the current level of interest and support in the Market, particularly around the endorsement pilot, we are on track to achieve this.
And if you aren’t connected yet – don’t get left behind.
Lloyd’s Exchange – Get the message
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Click the link below to find out more about what an RSS link is, how it works and how to set one up:
http://www.lloyds.com/News_Centre/RSS_feeds.htm
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