The electronic endorsement trial has been hailed a success by the London Market Group (LMG) and will begin a three phase roll out across the market in 2011.
The LMG said its decision to open the electronic endorsement programme to the wider market had come in the wake of “the successful launch of the live pilot in the marine business classes”.
Barnabas Hurst-Bannister, Chairman of LMG, said that “Early signs are encouraging from the pilot. We have seen significant volume of endorsements being sent by brokers and are collating feedback – which has been both positive and negative as one would expect at this stage. It is vital we build on this good start through the remainder of this year and into 2011. Many firms need to know LMG’s plans for next year to enable them to plan and allocate budget. Although dependent on the current pilot, this decision provides that clarity.”
The LMG said it has agreed a roadmap covering three phases of roll-out.“These will result in all classes of business handled by the London market being supported by the electronic processes now being piloted for some marine classes,” it added. “Remaining marine classes and professional indemnity will be completed by mid-Summer. Terrorism, US property and treaty reinsurance are planned for implementation in the autumn, with all other classes going live around the turn of the year.”
Rob Gillies, Head of Market Processes at the Lloyd’s Market Association and project manager for London’s implementation of electronic processes to support placing, added: “We will evaluate the outcome of the current pilot, identify the lessons to be learnt, and address technical, process and practice issues. Of course we need to get it right but this decision sends a clear message that electronic processes, supporting business placement as well as other parts of the risk lifecycle, are an essential part of the market’s future.”