International Underwriters Laud

The chief executive of the International Underwriting Association, speaking at an U.K. insurance industry conference, called on companies to appoint board level sponsors for all London market reform initiatives.

IUA CEO Dave Matcham made his remarks at the annual Xchanging conference in Brighton where he outlined a six-point plan for implementing a 'cultural revolution' in the way insurance and reinsurance business is transacted by the London market.

"My very simple but important message is that behavioral change is every bit as important as process change," Mr. Matcham said. "Those close to the debate have been unanimous on one point: that much of the change needed to deliver reform is about behavior and culture.

"Just because something has been done in a certain way for as long as anyone can remember is no reason to go on doing it that way. We must all embrace our own cultural revolution."

The proposal for board level sponsors on market reform initiatives was made as Mr. Matcham identified leadership as one of six key processes necessary for successful behavioral change.

He said he had seen in a leadership brochure recently "that 'some things never go out of fashion: tailored suits, luxury cars and agonized debate on leadership.' But it is important. What leaders say and do matters enormously."

He suggested there should be an accounting and settlement sponsor, a claims reform sponsor, and "most importantly someone responsible for blending the technology solutions and process changes into the overall culture of the company. This may well be the CEO or chairman."

Mr. Matcham also called for the market to "Think Team" and staff development, and create training programs to attract new talent and deepen the skills base of existing staff.

He called for companies to "Think Earlier" in the business process to avoid having to deal with problems just days before a policy renewal is due and "Think Motivators" to provide staff with compelling incentives to change their behavior.

Finally he advised executives to "Think Collaboration" learning from their peers by using market associations like the IUA and participating committees and groups that enable experiences and best practices to be shared.

Mr. Matcham added that London's market reform program already has made a positive difference and won near universal acceptance.

He commented: "I feel that the market reform program is akin to an ocean going liner. It takes a lot to turn the vessel, but once you've started, there's no going back.

"It is now, at last, so far advanced in its metaphorical turning circle that this liner, the SS London Market with its 30,000 passengers on board, is now heading toward the promised land of Puerta del Process Efficiency and its neighboring flourishing islands of Enhanced Opportunity and Profit. Let us all enjoy the ride."