Iain Saville, Lloyd’s Head of Business Process Reform, announced a further improvement in slip quality, but urged the market not to let up in its drive to improve the quality of slips as it enters the renewal season.
While Lloyd’s harried brokers still tote their venerable slip cases around its hallowed halls, the contents are apparently getting better. Lloyd’s bulletin said: “For the first time, a large sample of slips has been checked early in the placing process, so that rapid and reliable feedback can be given to brokers and underwriters. Slip auditors now check 25 percent of all slips on which the leader has put down its line. A total of 485 slips were checked in September.”
Lloyd’s has mandated uniform slip requirements, and the survey showed that “the average slip placed in September scored 86 percent against the balanced scorecard assessment. This is equivalent to a 2 percent rise to 89 percent under the previous reporting arrangements.”
The latest checks also show that:
— for the first time, none of the 485 slips checked failed to follow the new slip format without an acceptable reason; and
— there has been significant improvement in several areas previously identified as compliance hotspots.
However, the bulletin continued the “Unique Market Reference still fails to appear on far too many slips; and too many slips contain comments such as ‘to be agreed by the slip leader’ against items which should have been agreed before the leader accepted the slip.”
Saville commented: “We continue to see positive developments in the quality of slips but still have a considerable way to go if we are to reach our 95 percent target by the end of the year. Our new slip checking arrangements enable us to give timely and focussed feedback and guidance to brokers and underwriters, to help drive the improvement. We will again issue anonymised league tables to the top brokers and managing agents, to assist the bottom performers to appreciate the need for action. I appreciate the stresses of the forthcoming renewal season, but urge brokers and Managing Agents not to relent on the drive for quality.”
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