London leads the way in the global competitive market place according to a panel of market leaders. The panel discussion sponsored by Xchanging, entitled ‘London Market Reform: How is the Market Responding?’ addressed a number of key issues about the market’s technological progress at the annual Insurance Technology Congress.
For different reasons, each of the four panellists agreed that the collaborative efforts of a wide range of participants across the market over many years had contributed to London maintaining its position on the world stage. One panellist cited the example that seven years ago around one third of clients received contract documents within 30 days; today it is over 95%.
Others felt that, for complex contracts, there was no faster place in the world than London, which bore testimony to the effectiveness of the collective reforming efforts.
Other reasons the panel felt reforms had given London the edge include:
– ECF has reduced settlement times by 60%
– The repository has reduced processing time from five days to three
– The levels of contract certainty and use of ACORD messaging in London are unseen elsewhere in the world
– e-Accounts and e-Endorsements were also hailed as crucial factors in London’s leading position.
While the panel agreed there is still a lot more work to be done, in particular with endorsements, the gauntlet was thrown down that the real challenge was in brokers and underwriters overcoming their own resistance to change. One panellist summed up: “Courage and determination are the key characteristics required as the technology is there; it works and is producing tangible results.”
