e-placement in 2009: An Update Watertrace Review Results and Implementation

Transcription

1 e-placement in 2009: An Update Watertrace Review Results and Implementation 28 May /11/ /11/2010 1

2 Agenda 2008 Study 2009 Comparison: Study Logistics and Demographics Findings and conclusions Recommendations Actions and Implementation 10/11/2010 Slide 2 10/11/2010 2

3 2008 Study Key Findings Recap Where are the hearts and minds of individuals and firms? Automation of London Market processes is inevitable and needed The implementation approach needs to be carefully staged The technology is key and needs to be continually improved The next steps are critical What issues need to be addressed in order to improve it? Publish its EP roadmap Programme manage all aspects of people, process and technology Strong communications and stakeholder management Provide all internal and external stakeholders (incl. survey participants) the RI3K report 10/11/2010 Slide 3 10/11/2010 3

4 Measuring the KSFs: What were we testing? Slide 4 10/11/2010 4

5 2009 Survey demographics Quantitative and Qualitative survey tools were used; Anonymity was granted if requested; 32 market firms were represented Questionnaire Demographics: Separate questionnaires for brokers and underwriters; Completed prior to interview or focus group, generally online; 81 market respondents completed the questionnaire; and 22 broker respondents completed the questionnaire. Interview / Focus Group Demographics: Conducted face-to-face with between 1 and 11 respondents; 96 market respondents; and 23 broker respondents. 10/11/2010 Slide 5 10/11/2010 5

6 Progress has been made... KSF1/2: Volumes/ Take-up has increased Both Insurance and Reinsurance noted growth; and Growth greater for Insurance than Reinsurance eplacing use greatest for Firm Order, Binding, Electronic Advice of Signed Lines and Endorsements; and Significantly less use for Receipt of Quote Slip, Placement Negotiation and Quote Creation stages, as per process design. 10/11/2010 Slide 6 10/11/2010 6

7 Progress has been made... KSF 3: 3 Key Issues from 2008 Three key opportunities for improvement noted in 2008: Communication; Functionality; and Process understanding. Communications are significantly improved: Markets strategy is communicated well; Functionality changes are known; Brokers want more information from underwriters about willingness and readiness to participate in eplacing; and Individual broker communication can still be improved. 10/11/2010 Slide 7 10/11/2010 7

8 Progress has been made... KSF3/6: Functionality Improvements Functionality improvements have been noted by both Brokers and Underwriters: 24% of underwriters strongly agreed that the tool had all features needed; 32% of brokers also agreed; and 38% and 55% of underwriters and brokers respectively agreed or strongly agreed that fewer technology problems were encountered now. 10/11/2010 Slide 8 10/11/2010 8

9 Progress has been made... KSF4: Opportunities for Improvement still exist for Strategy and Process Strategy development is present in the majority of respondents: 64% of brokers and 51% of underwriters believed a strategy existed that was clear and coherent; Majority or BR and UW have reviewed processes to take advantage of eplacing support: 59% of both BR and UW; 9% not changed at all; and Further improvements possible. Further work is required to embed eplacing support processes for markets and Brokers Slide 9 10/11/ /11/2010 9

10 Progress has been made... KSF5: Benefits from eplacing Support Brokers perceived greater benefits from eplacing support use than underwriters: Delivery of firm order terms: 45% of brokers considered considerable benefit had been obtained compared to 15% of underwriters; Binding: 69% considerable benefit compared to 35%; Electronic Advice of Signed Lines: 64% compared with 37%; Endorsements: 67% compared with 28%; and Greater broker integration may explain this differential in benefits. Slide 10 10/11/ /11/

11 KSF7: Benefits in the Future are Expected to be Sizeable Both brokers and underwriters believe that the benefits of eplacing support will be significant in the future: 81% of brokers and 49% of underwriters see significant future benefit for their firm. This belief in future benefit validates an ongoing growth of eplacing support use. Slide 11 10/11/ /11/

12 KSF8: Who is Driving This Initiative? 75% of brokers believe Aon is driving eplacing; 82% of brokers understand Aon s corporate strategy of eplacing and why it was important to Aon. 77% of underwriters believe Aon is driving eplacing; Underwriting firms are also driving eplacing through corporate strategy: 24% believe corporate strategy is the main driver for eplacing 10/11/2010 Slide 12 10/11/

13 Underwriter Reduce the Management Divide Broker Management Greater business volumes through reduced time on timeexhaustive tasks Increased volumes written resulting in greater firm GWP Increased business volumes generating greater revenue Richer Information obtained as more time to verify information with less time taken on manual tasks Richer Information leads to the ability to write risks more efficiently Better client service since insurance will be priced at a level that reflects the actual risk Tighter controls for the firm reducing operational risk Greater stability Greater stability Increased eplacing support usage for manual time-consuming tasks means more time for: Building relationships Increasing business volumes Reducing human error Slide 13 10/11/ /11/

14 Recommendations Affirm segregated processes Measure and monitor processes with appropriate KPI Measures Functionality Upgrades Engender greater ownership amongst brokers and underwriters 10/11/2010 Slide 14 10/11/

15 Affirm Segregated Processes Affirm Process in user groups Document Process Communicate Process Agree correct processes in facilitated workshops Highlight issues with process and resolve Create process diagrams Created detailed documentation outlining chosen method of completing process Deliver diagrams to all process users Discuss diagrams in forum Confirm communication Engagement of key individuals Confirmation of process Clarity of process 10/11/2010 Slide 15 10/11/

16 Example High Level Process Documentation MP 1. Underwriting Process Dates dictate that policy to be moved to draft status for following year. 1.4 Arrange Facultative Reinsurance Post Loss Surveys Increase premium / reduce deductible 1.13 Survey Conducted Immediate notification to Individual that Policy is up for renewal 1.2 Renewal Preparation Decision to review surveys to be conducted in following year 1.12 Survey Arrangement Survey Details 1.9 Outwards Reinsurance Confirmed Underwriter or other individual decides to search for policies coming up for renewal MTA received New Survey To be added to timetable 1.3 Quote Preparation Quote Offer Quote 1.5 Quote Decision agreed 1.6 Bind Negotiation Quote declined / NTU Not significant MTA s Quote declined Confirm R/I prior to Bind if necessary Policy / MTA on cover Client contact the with Information regarding potential new business Broker / Client contacts our client directly 1.1 Contact New Business Policy cancelled by insured Policy cancelled by our client 1.11 Quote / Policy Declinature Cancelled Policy requires re-issue of certificate Cancel any remaining surveys Policy cancelled by Our client / insured Broker / Insured requires Marine certificate 1.10 Marine Insurance Certificates Lapse Policy 1.14 Premium Payment Broker / Insured requests Marine certificate Notification that Declaration is due Marine certificate required rd Party Premium Payment Premium booked Declaration sent 1.8 Declaration Processed Premium booked 1.7 Policy Documentation Co-insurer sends policy doc. s / Endorsement Document to our client Report produced detailing due declaration/s 10/11/2010 Slide 16 10/11/

17 Create an Independant online eplacing Forum Examples of Discussion topics based upon Insurance Day Summit Pace of driving eplacing change Impact of other market initiatives Ease of integration or different tools Lessons Learned: Integration Process definition Stumbling Blocks 10/11/2010 Slide 17 10/11/

18 Measure and Monitor Process against KPIs Draft Key Performance Indicators for eplacing processes Review Key Performance Indicators with key Stakeholders Assess viability of achieving Key Performance Indicators Sample KPI Tree Created using methodology above Revise KPIs if necessary Observe compliance with KPI tree Feedback to practitioners Record observations Review observations 10/11/2010 Slide 18 10/11/

19 Functionality Upgrades 10/11/2010 Slide 19 10/11/

20 Engender Greater Ownership Amongst Brokers / Underwriters F 2 F Documents Delivered Receipt of Quote Slip Placement Negotiation Quote Creation Firm Order Terms Binding Advice of Signed Line Endorsements E P S Documents Delivered Industry-wide comparison study; Firm Order Terms Binding Electronic Signed Line Endorsements Compare timescales for F2F process versus eplacing Support process; Business case for pushing eplacing: Brokers timescales / costs; Business case for pushing eplacing: Underwriters integration; Promote the positive: Case studies 10/11/2010 Slide 20 10/11/