Delegated Authority (DA)

Making the London Market more
attractive for coverholders

What is Delegated Authority (DA) - Data Standards and SATS?

  • A single set of market-approved reporting DA Data Standards (Risk, Premium and Claim) to be utilised consistently across the entire delegated authority market.
  • Central repository to facilitate the collection of data in line with the Data Standards, supported by a centrally manned service for delegated authority data (Submission, Access and Transformation).
  • Data Standards are available through the Market Business Glossary (currently Coverholder Reporting Standards v5 with further standards for Risk by Class of Business being introduced from 2017) eventually feeding in to the DA SATS Solution. This will enable automation, straight-through processing and one-touch data capture.

What are the benefits?

  • Reporting for coverholders is easier with a single set of market-approved risk, premium and claim data requirements and central processing of data.
  • Data will be defined once, used consistently and continuously improved.
  • Automated submission, collection, validation, processing and distribution of delegated authority data across the market is delivered.
  • An introduction of a technology and service which will enable consistency, increase efficiency, eliminate duplication, reduce re-keying and contribute to straight-through processing.
  • A “single source of truth” for Delegated Authority Risk, Premium and Claim data for the market will be available.
  • Data quality will be improved through validation and enrichment processes

Pre-DA

  • Coverholders face various definitions and multiple requests for data across the London Market.
  • Carriers and brokers encounter data gaps and inconsistencies in the data.
  • It is difficult to electronically consume data to meet processing, reporting and analytical needs for carriers and brokers.

After Modernisation

  • Risk, Premium and Claim standards are agreed with all Lloyd's carriers. This covers all territories and classes and includes tax and regulatory requirements.
  • Significant reduction in time and effort spent on transformation, cleansing and processing for delegated authority Risk, Premium and Claim data.
  • Availability of standardised data in flexible formats enable stakeholders to meet management and regulatory reporting requirements at the appropriate granularity.

What are the key dates in 2017?

Activity Target date
Business data requirements delivered to Data Integration  / ACORD in batches during 2017 to create XML standards which will then be rolled out for use in the market Throughout 2017/2018

Key Progress to Date

  • Data standards are being developed in order of binder volume. To date, 19 standards have been agreed with the relevant underwriting committee, 7 are on the point of being agreed and should be completed before the end of August. A further 5 are currently being developed with help from the LMA and are scheduled to be agreed by the end of September

2017 Priorities

  • Ensure that standards are approved and market adoption is underway.

What is Delegated Authority (DA) - Approvals and Compliance Platform

  • A centralised platform streamlining and fully automating the business processes of application, approval and compliance of delegated authorities and enhance DA contract generation.
  • Includes incorporating current offline items (e.g. Decision Papers written by Carriers for Due Diligence) into the systems for approval and utilising hierarchical Coverholder entity structures to speed up approval and Compliance.
  • Creation of Binding Authority contracts to ensure a right first time electronic contract

What are the benefits?

  • One touch data capture across Approvals and Compliance resulting in the acceleration of the end to end business process and reduction in duplicated data entry.
  • Enable straight through processing by generating the first record of the binder to be consumed.
  • Reduction in the need for Carrier Compliance staff to conduct contract checking.
  • Reduction of duplicated data entry by streamlining approvals and compliance activities for market stakeholders and reduce administrative burden and cost.

Pre-DA

  • The current Approvals and Compliance process does not support all parties in an efficient process.
  • Data is entered manually into the contract and then again in BAR, then checked three months later.
  • Data quality errors will continue as data will need to be re-keyed.

After Modernisation

  • Enhanced application and approvals process to capture Delegated Authority data once.
  • Coverholder and TPA data can be utilised for compliance checks (including direct attestations by coverholder and TPAs) and then maintained and reported from as part of the Compliance initiative.
  • Cornerstone for One-Touch-Data visualised for DA – creates the record which underpins the initiatives.

What are the key dates in 2017?

Activity Target date
Product selection and commencement of build Q3 2017

Key Progress to Date

  • Two preferred vendors are taking part in the final selection process. A review of the implications and the benefits of this workstream for coverholders, brokers and managing agents will be available in September.
  • Release 1 is targeting a go live in 2018.

2017 PRIORITIES

  • Commence build on DA Data SATS.

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.

Pre-AiMS

  • 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

After Modernisation

  • 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.

What are the key dates in 2017?

Activity Target date
Implementation of additional functionality to support coverholder audit management tool Delivered

KEY PROGRESS TO DATE

  • Audit tool online.
  • 1,500 fewer audits in 2017 because of the automated coordination of 1,200 coverholder audits covering 3,000 relationships.

2017 PRIORITIES

  • Go live with a system to manage and share information from central audits.