IUA supports market reforms
Tuesday, November 11, 2003
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
Press & PR Manager
International Underwriting Association
Tel: +44 (0)207 617 4449
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.
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.