Who Leads Market change?   
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Well first and foremost the firms and people involved in the market. Change can’t happen without their participation: it is not about somebody else changing it is about them changing. They are the most important component, the decisions they make about what to do and what not to do, where and in what to make investments are critical. The market has established a number of pieces of infrastructure to support this process.

The London Market Group (LMG). This is a market wide body made up of the CEOs of market participants, CEOs of the trade associations and representatives of Lloyds. LMG is chaired by Barnabas Hurst-Bannister who is also Chairman of Travelers Syndicate Management. The role of LMG is to act as a focal point for setting the direction of modernisation projects, help resolve conflict and tension, gather together firms to take the lead on initiatives, and address in balances in the way costs and benefits accrue.

LMG is the senior market-wide body responsible for overseeing and driving process change in the London Market.  Its principal responsibilities are to:-

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  • Set vision, strategy and timetable for the market.
  • Resolve difficult cross market issues.
  • Communicate: influence the environment and disseminate information.
  • Set up governance for initiatives.
  • LMG firms lead by example, form lead implementer partnerships and encourage laggards.
  • Ensure that initiatives are consistent with each other and with vision.
  • Measure progress on individual projects and whole reform programme.
  • Agree standards and where necessary produce them.
  • Make sure that resources are in place
               - Project Managers, analysts, experts
               - Resolve funding for agreed initiatives

LMG will typically focus on and drive 2-3 key initiatives

The LMG Secretariat (LMGS). This is headed by Christopher Croft. Its role is to support LMG by keeping track of all reform activity, monitoring progress against the direction that the market has set and making information available to firms on a free to air basis. It also runs projects such as contract certainty and the development slip standards.

Each trade association and Lloyd’s has a team of people who are also supporting reform, in alphabetical order:

International Underwriting Association (IUA) represents the interests of company market insurers. The IUA is leading work in the company market to introduce the electronic claims file; reduce the volumes of policies that have not been issued to clients; and embed contract certainty.

Lloyd’s has taken lead responsible for coordinating the implementation of the electronic claims file and the accounting and settlement document repository (together the Insurers’ Market Repository – IMR).

Lloyd’s Market Association (LMA) represents the interests of Lloyd’s managing agents. Members of the LMA are delivering projects to develop electronic placement and endorsements.

London and International Insurance Brokers Association (LIIBA) represents the interest of the people who bring business to the market and are responsible for managing the relationship with the end client. LIIBA itself is leading work to reduce the error rate on submissions to underwriters, and to increase the use of delinking (the separation of the timing of the premium payment from the date on which a policy goes on risk). Broker members are leading the work to deliver standardisation for submissions and endorsements.

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