DA Audit and Compliance
Making the London Market more attractive for coverholders
What is the Audit Information Management System (AIMS)?
- An automated platform delivered by LM TOM which primarily supports the process of auditing coverholders and TPAs in a co-ordinated manner.
- Provides end-to-end functionality to coverholders, TPAs, auditors, brokers, carriers and the Central Audit Function around audit workflow including: scheduling audits, scoping, preparing for audit site visits and managing / tracking audit findings and recommendations.
- Additionally supports the scheduling and management of “solo” audits where coverholders / TPAs have a single relationship with a carrier.
- The platform was delivered in three phases and is now utilised by the market in a ‘live’ environment.
- More coverholders and all TPAs underwent multiple audits commissioned by multiple carriers separately.
- DA Team at Lloyd’s carried out a significant amount of manual work to “schedule” co-ordinated audits and then produce consolidated letters to coverholders with audit recommendations.
- Cost and resource overhead required to support audit process
- 98% of LMA members are using the AiMS which will support the full auditing process for 2018.
- AiMS makes the business process of conducting co-ordinated audits more scalable. This will result in a decrease in the burden on coverholders and make it easier for them to do business with London.
- There are workflow and reporting capabilities to the co-ordinated audit process. Automation and enhanced business processes mean brokers, carriers and coverholders have the capability to take advantage of market opportunities.
- The automated functionality means a co-ordinated process for auditing TPAs.
What are the benefits
- Co-ordinated audits, supported by AiMS, look to reduce coverholder and TPA audits to once per year across the market. This reduces burden on coverholders and TPAs.
- Reduced cost and administrative overhead for carriers around co-ordinating and scheduling multiple audits.
- Efficiency savings as the time for audits to be carried out will decrease.
- Removal of duplicated carrier effort in auditing individual coverholders / TPAs.
- Streamlined and consistent audit checks, using uniform audit scopes, make it easier to do business in the London Market.
- Audit cost savings across the market.
Key progress to date
- Audit tool online.
- 1,500 fewer audits in each year because of the automated coordination of 1,200 coverholder audits covering 3,000 relationships.