The G6 group of Lloyd's Managing Agents has confirmed the pilot of a new approach to contract checking.
The new process aims to support brokers in achieving contract certainty targets and radically reduce the time involved in the current procedure.
Under the new proposals, the total number of administrative checks to contracts will be reduced by approximately 70% to focus on the key checks that are most instrumental in managing risk.
Richard Ward, chief eecutive of Lloyd's, yesterday announced full support for Lloyd's Managing Agents undertaking a new approach to contract documentation.
According to the G6, the current contract checking procedure, part of the process known as ‘stage 2' at Lloyd's and administered by XIS, involves an average of 170 checks per slip. Many of these checks are no longer relevant to the modern day market.
Checking occurs after the risk placement stage, and the complexity and effort involved in processing current checks can result in significant delays to the production and delivery of contract documentation to clients.
The G6 believes a radical reduction in checks is required in order to focus on checks that reflect today's risks and challenges.
The G6's new approach significantly reduces administration and ensures essential checks are carried out before the policy is placed. To ensure quality is not compromised, Lloyd's will work with Agencies to carry out a post-placement audit.
The G6, which comprises Amlin, Beazley, Catlin, Hiscox, Kiln and Wellington, have worked closely with the LMA, Lloyd's, XIS, brokers and other Managing Agents to develop the proposals.
Sue Langley, chairperson of the G6 and chief operating officer of Hiscox, said: “I'm delighted that we have been able to take this step forward so quickly, working with both Lloyd's and the LMA.”
Jonathan Matthews, Beazley underwriting risk manager and G6 project leader, said: “This is a ground-breaking proposal which will revolutionise the way insurance contracts are checked and placed. By focusing on a smaller number of the most critical checks, we can speed up the process and empower agents to either carry out the checks in-house or outsource to a third party, for example XIS.”
Rupert Swallow, head of global operations, Benfield, said: "We welcome these further initiatives to modernise processing in the London Market and are pleased to continue to support the G6 in their efforts."
The new process will be piloted between June and October by G6 members and other London market members who wish to participate.
