IUA supports market reforms

Following Lloyd's decision to mandate use of the London Market Principles (LMP) placement slip, the International Underwriting Association (IUA) is continuing to support the introduction of market reforms amongst its own members in the London company market. As a trade association, the IUA does not have the regulatory power to mandate slip usage. It does, however, intend to strongly promote and encourage the initiative within the company market. The IUA will be writing to its members to recommend that they adopt the LMP slip as a market standard. Attention will also be focused on helping to ensure the quality of slips used for business incepted in London. The IUA has been involved with the market reform process since inception and helped ensure that company market concerns were taken into account as the LMP slip evolved to its present form. "The new placement slip is the bedrock upon which all other reforms within the LMP programme are built," says Stephen Cane, chairman of the IUA. "The IUA welcomes Lloyd's decision to mandate its use and believes this will have a positive influence on the implementation of LMP across the London insurance market as a whole. While the company market cannot mandate the slip in the same way, we will be doing everything that is within our power to increase acceptance. IUA members will be urged to follow Lloyd's lead and ensure that a true market standard is established." In addition to promoting the slip initiative, the IUA is also focused on driving forward other LMP projects, in particular accounting and settlement and shared market repositories. The key element of the accounting and settlement initiative is the adoption of ACORD electronic message standards for the communication of data. Work is under way on an implementation outline for the proposals. "There are some very compelling business factors behind the LMP market reform programme," says Cane. "Improving client services is simply imperative if London is to continue to prosper as the world's leading insurance centre. At the same time we can substantially reduce our costs in conducting business, and help satisfy the demands of those regulating our industry." Contact: Scott Farley Press & PR Manager International Underwriting Association Tel: +44 (0)207 617 4449 E-mail: [email protected] Notes to Editors: About the IUA The International Underwriting Association of London (IUA) is the world's largest representative organisation for international and wholesale insurance and reinsurance companies. It is both a trade association - representing its members' interests internationally - and a market association supporting the business environment in London. About LMP London Market Principles (LMP) is a market-wide initiative supported by the underwriting and broking communities at Lloyd's and in the London company market. Sponsored by the Lloyd's Market Association (LMA), the London Market Insurance Brokers' Committee (LMBC), the IUA and Lloyd's, LMP aims through a process of reform, to create an efficient and streamlined marketplace with improved service provided to clients.