The slipcases at Lloyd’s are slowly going the way of the buggy whip. In a recent announcement the Market Reform Group (MRG) published details of the arrangements which, it said, “will see the end of paper processing for accounting and settlement (A&S) submissions.
“For original premium the market will hit full electronic processing from end March 2008. For additional and return premium this will occur by the end of the year.”
The MRG noted that there is a “market wide agreement on the end of the paper service, with Xchanging already reporting a sharp reduction in the number of crates being transported to Chatham [Lloyd’s back office processing center] for the London market.”
Electronic processing for accounting and settlement submissions has been slow in coming, but, as the MRG explained, it offers “significant benefits for both clients and the market. The system allows for the more rapid movement of premium, improves the accuracy of submissions and increases efficiency leading to lower operating costs and an overall reduction in the operational risk. This combination will lead to an increase in the quality of service provided to the client.”
Steve Matanle, Chair of MRG, commented: “The end of paper processing for accounting and settlement is a key part of our plans for 2008. Electronic submission reduces cost and speeds up the payment of premium. This is another crucial milestone for reform, helping to ensure that London remains the market of choice for global insurance.”
Paul Jardine, Chairman of the Lloyd’s Market Association (LMA), added: “This marks a significant change in the way the industry does business. We now have the momentum to push the entire market forward through the reform process. The removal of paper original premiums will further enhance the service that London offers, speeding up the premium payments and reducing operational risk.”
Mark Barwick, project manager at LMBC, described the removal of paper from the accounting process as a “positive step forward.” He noted that “brokers are already processing in excess of 70 percent of premiums electronically. It is especially pleasing that this has been achieved within 18 months of the system going live, and this demonstrates the level of commitment the broking community has to market reform.”
The paper detailing the arrangements is available via the market reform web site – www.marketreform.co.uk.
Source: Lloyd’s – www.lloyds.com
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