E-Policies Update Mark Barwick, Associate Director, LIIBA

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E-Policies UpdateMark Barwick, Associate
Director,LIIBA
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Agenda

• 1 What is an e-policy
• Scope
• Benefits
• MRG Targets and milestones
• Measurement
• Implementation Planning
• Detailed process
• Further Information
• Questions

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What is an e-policy?

• There are three types of policy now available
  from Xchanging
• Paper policy wording and associated
  documentation submitted for signing as paper.
• E-policy Submission Submitted electronically
  via the IMR but Policy Control form specifies
  broker requires a paper policy
• True e-policy policy request submitted via the
  IMR and policy document returned to the broker
  electronically as a digitally signed PDF document.

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Scope of e-policies

• In-Scope
• Covers marine, non-marine and aviation
• Insurance and reinsurance
• Direct, facultative and excess of loss
• SA or Policy only
• Policies, policy endorsements and slip policies
  (companies only)
• Binding authority wordings
• Policy endorsements where the original policy was
  on paper
• Out of Scope
• Policy requests by renewal receipt

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Benefits of e-policies

• Faster turnaround time allows brokers to meet
  their contract certainty obligations
• Reduction in paper handling costs
• Still allows paper policy to be produced where
  local regulation demands it
• Electronic record of policy held in repository
  for subsequent processing and claims
• AND SAVE TREES!

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MRG Targets Milestones

• 31/12/2008 80 of policy submissions to be
  electronic.
• 1/3/2009 100 of policy submissions to be
  electronic or supported by an e-policy exemption
  form.
• Paper policy submissions without exemption form
  will be rejected prior to normal policy checks
  being performed.
• e-policy submissions will be signed
  electronically as a default.
• Brokers should only request paper policy where
  insured requires embossed policy.
• Q4 2009 90 of all policies both submitted and
  signed electronically.

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Measurement

• TARGET 100 of policy submissions electronic by
  1/3/2009
• Broker level data not available for e-policy
  submissions
• Progress against target based on manual count of
  e-policy submissions at market level
• TARGET 90 of policies signed electronically by
  Q42009
• LIIBA producing monthly league tables showing
  of true e-policies as a of total policies
  signed for each broker
• Binding authority wordings a late addition to the
  scope and therefore excluded
• Binding authority data available and will be
  added as later development

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MRG Target 100 by 1/3/2009
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MRG Target 90 by Q4 2009
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Before using e-policies

• Broker must complete registration form See MRO
  website.
• Broker must be an existing user of AS, either
  Direct Load or DRI
• Adobe Acrobat Reader (version 5 or above) must be
  installed to view e-policy
• Determine central email address for signed
  e-policy to be sent to
• Consider what you tell your clients about the
  change
• Train your policy technicians in Direct Load or
  your DRI solution

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E-policy submission process

• Establish at quotation whether e-policy suitable
  for (re)insured
• If (re)insured requires paper policy could this
  be printed version of e-policy or do they
  require embossed paper policy?
• Ensure MRC makes it clear policy required, and
  policy attached to MRC when placed.
• Submit word/PDF copy of wording via AS as part
  of work package
• Ensure a Policy Control Form is completed and
  present in work package
• If (re)insured has requested embossed policy then
  specify a paper copy required on Policy Control
  Form

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E-policy signing process at Xchanging

• Xchanging sign policy electronically and apply
  electronic seal to the document, similar to
  embossed seal found on paper policies.
• Xchanging load copy of signed policy to UMR
  folder of IMR with document type of Signed
  Policy.
• Xchanging email signed document to brokers
  central email address provided at registration.
• Brokers may send e-policy to client
  electronically, or if client preference print and
  sent as paper

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E-policy exemption process

• Brokers have identified minority of contracts
  where e-policy submission not possible. Examples
  include
• (re)insured requires wet signature due to local
  requirements or preference.
• (re)insured wants London security to be
  documented in consistent manner as other
  insurers on risk
• Legacy or complex risk
• E-policies exemption form requires broker to
  explain why paper submission required
• Information gathered from exemption form will
  allow service to be enhanced to bring more
  policies in-scope
• Paper policy submissions without e-policy
  exemption form will be rejected prior to policy
  checks being completed

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LIIBA members NOT registered as at 13th February
2009

• Smith Bilborough Co
• Special Contingency Risks
• Special Risks Insurance Brokers
• SSL International Brokers
• Tasker Partners
• Texel Finance
• The Broker Network
• The Underwriting Exchange
• Towergate London Market
• WT Butler Co
• Woodgate Partners

• FP Marine Risks
• Gresham Insurance Brokers
• Griffiths Armour Global Risks
• Hayward Aviation
• Howard Global Insurance Services
• International Risk Solutions
• KM Dastur Co
• Paragon International Insurance brokers
• Parker Norfolk Partners

• Baronsmead Partners
• Bennett Gould Partners
• Camberford Law
• CKRe
• Corrie Bauckham Batts
• Crescent Global UK
• Croton Stokes Wilson
• Culver Ltd
• Decus Insurance
• Endeavour Insurance
• European Insurance Reinsurance Brokers
• OAMPS Special Risks

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Further Information

• The following documentation is available from
  Market Reform website
• Xchanging E-policies User Guide.
• List of brokers who have signed up for E-Policies
  
• Specimen E-Policy
• Frequently asked questions document
• E-Policies broker registration form
• To view or download these documents go to
• www.marketreform.co.uk
• For further information contact
• Mark.Barwick_at_LIIBA.co.uk - 0207 280 0152 or
  Michael.Langston_at_Xchanging.com - 01634 887 662

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• Joe Plumeri
• This is a further example of the London market
  improving its processes to deliver benefit to our
  clients. E-Policies help us to meet our
  obligations to provide our clients with evidence
  of the business we have placed for them and they
  help us do that in an efficient manner consistent
  with a twenty first century market place. Lower
  cost to process, better service delivered. That
  is what market reform is all about.

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