London aims to be global insurance leader

by David Masters

Story link: London aims to be global insurance leader

The Market Reform Group (MRG) plans to make London the ‘market of choice’ for global insurance.

MRG, which sets priorities for London’s insurance industry, said it is implementing plans for a major ‘growth spurt’ that will cement London as the home of the international insurance market.

The three year plan, starting 2009, includes full use of ECF (electronic claims) for all claims, and use of ACORD standard data (e-Accounting) for premium submissions.

In addition, MRG will continue to encourage the use of electronic placing and endorsements.

MRG Chairman Peter Harmer also reviewed the progress of 2008 reforms, calling it another ‘year of solid progress’.

During 2008, ECF embedded business as usual in the Lloyd’s market, with significant roll-out across companies. Paper was removed from the premiums process, whilst 250 firms signed the IMR agreement to put legal and operational controls on electronic trading.

To retain its position as the global insurance market of choice, London needs to continue progress of this magnitude, Harmer said.

Key insurance leaders endorsed Harmer’s plans, including Paul Jardine, Stephen Riley, Jonathan Palmer-Brown and Richard Ward.

Jardine, chair of Lloyd’s market association, said MRG’s work is ‘vital’ for the future of London’s market.

Riley, chair of the International Underwriting Association, said Harmer’s plans are a ‘blueprint’ for a long term profitable London.

Palmer-Brown, chair of the London & International Insurance Brokers’ Association, said brokers are ‘fully supportive’ of the plans. He added that the plans will improve efficiency and reduce costs.

Ward, CEO of Lloyd’s, urged all CEOs to commit their firms to following MRG’s recommendations.