Shirine Khoury-Haq blog: Keeping our foot on the gas, London Matters report 2017
There are occasions when we act on hunch and instinct – and often that works fine. But when you are investing the market’s hard-earned cash, basing your decisions on hard facts is crucial. The London Matters report in 2014 gave us that fact base.
While the report demonstrated London’s leading role in commercial insurance, it also laid out some of the longer-term challenges facing the Market including increased competition, particularly from markets with lower transactional costs. This fact-based approach was the underpinning for our thinking and planning about how to meet those challenges through the London Market Group’s (LMG’s) modernisation agenda.
Fast forward three years and we have significant work under way in the TOM, and now we have a new set of data. In terms of the TOM, we have had some positive developments and some bumps in the road. Placing Platform Limited (PPL) is making progress in the lines of business that are on the platform, with over 3,000 risks bound so far. However, we have pushed back the launch of Facilities until June to accommodate market concerns around the previous timescale.
Central Services Refresh Programme (CSRP) has also made good progress, making it possible for electronic premiums and claims submissions to be made into the XIS Bureau. Next we are looking at premiums and claims from binders and other services. For claims, however, this is dependent on CSC delivering improvements to ECF for coverholder business – a piece of work where issues have arisen that will cause the delivery to slip significantly. We have raised our concerns with CSC and will keep the appropriate bodies up to date on developments.
The latest London Matters report numbers take us to the end of 2015 – some time before the TOM got underway in earnest. While there are several positive trends in the data, there are still significant challenges particularly in reinsurance and emerging markets. So, our need to make London an easier place to do business is as acute as ever.
Finding growth opportunities in the current market conditions is hard enough, so we have to work together to make our market more accessible, efficiently run and relevant to the needs of our customers. Together we can deliver simplicity and reduce cost so that you can deliver the expertise and specialist products that makes London so compelling. The road ahead may not always be straightforward, but this is definitely the time to keep our foot on the modernisation gas.
The full report is available here: London Matters 2017.