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Member, Beacon International Group, Ltd.
LONDON Lloyd's of London's chief executive officer, Richard Ward, has said that the pace of market reform is "still too slow."
In a response to a letter from Dane Douetil, chief executive of Brit Insurance Holdings Ltd., in his capacity as chair of the London Market Reform Group, Mr. Ward said that while he did not doubt the "shared will in the market to improve our processes," Lloyd's competitiveness was being jeopardized.
"Failure to improve our processes represents a significant risk to the market's efficiency, ratings and reputation and we cannot miss this opportunity to modernize," he said in a statement.
Mr. Ward said that the use of electronic claims files and the accounting and settlement repository are two key initiatives in the drive for improved efficiency. He noted that the market's use of electronic claims files in the last fortnight has been 28.5% and said that this was "encouraging," but added that it is imperative that the momentum is retained.
Mr. Ward described the market's current uptake of the accounting and settlement repository, which currently stands at 17%, as "disappointing."
Mr. Ward said that the Lloyd's Franchise Board was prepared to force these reforms through if necessary.
At the end of the third quarter, the Franchise Board will publish a complete list of performance figures for all managing agents and Lloyd's brokers. "This will make relative performance transparent to the market," said Mr. Ward.
"If the rate of use has not accelerated by that time, the Franchise Board will consider mandating the use of electronic claims files and accounting and settlement," he said.