An interim consultation paper was launched this month by the London Market Group (LMG) as part of its Future Processing Model project. The idea behind both the project and consultation is the ongoing modernisation of the processes used by the London market, in order to make it more efficient and competitive. The consultation paper looks beyond current modernisation initiatives to potential development over the next 10 years.
The proposals contained within the consultation paper include:
- Implementing straight-through processing whereby data should be keyed just once, reducing duplication, cost and the scope for error.
- All risks and claims being captured and processed electronically. Where the parties agree that face-to-face negotiation is desirable this will remain a mainstay of the London market approach. Other business will be processed entirely remotely.
- Ensuring that the interface between brokers and insurers in London is consistent with that in other markets.
- Ensuring that payment of claims is possible on an individual insurer basis rather than needing to wait for the whole market to pay.
All the proposals outlined in the paper are intended to be open for discussion to all stakeholders, who are encouraged by the LMG to comment on whether or not they believe the proposals will be successful at creating a more efficient market and whether or not they are achievable. The deadline for responses is 31 March 2011.