With the rapid globalization, London Insurance market was seeking a way to adjust to the 21st century business environment. The London Market Group (LMG) took several steps to make the changes. It introduced new electronic processing systems to make settlement and claims more efficient, such as the Insurers’ Market Repository (IMR), and the Electronic Claims File (ECF). All of those changes had contributed to the market’s modernization program.
London Insurance Market is the oldest market in the world. There are two classes of people and firms involved in the markets: insurers or provider of capital, and brokers or intermediaries between customers and insurance company. In order to be sustainable and efficient, the London Insurance Market is making great changes in such a complex business environment. The problem is that the London Insurance Market systems and practices have remained unchanged for hundreds of years; changes are not easy to make for its modernization.
According to the case, London Market Group took it step by step. It introduced three developments including electronic filing cabinet IMR and new claim system including ECF and eAccounts. In order to convince senior management, LMG then asked to set up “Finish What We’ve Started” work to help the implantation of modernization program. Besides, LMG chose “bottom up” approach, which effectively helped every employee be involved in the new system, especially the end users. Both top management and bottom employees were working together to achieve their goal.
The London Insurance Market have benefited a lot after adopting these new developments. For example, electronic claims take less processing time than before. Besides, according to the case, the return on investment was estimated to be 16%. The disadvantage of making changes is that it takes time and effort for employees to get used to the new electronic processing system. The companies also have to spend...