Delegated Authority (DA)

Making London capacity more
attractive to coverholders

What is it?

  • The London Market has agreed a set of information for coverholders to provide when they report on post-bind risk, premiums and claims. This covers all territories and classes and includes tax and regulatory requirements.

Why do we need it?

  • Currently there are various definitions and multiple requests for data across the London Market.
  • DA Data Standards aims to standardise requirements for each class of business reducing this burden.

How is it used?

  • Core risk, premiums, claims, tax and regulatory standards have already been agreed with all Lloyd's carriers.
  • Common data standards for class specific risk bound reporting have been defined and agreed the market associations (LMA, IUA and LIIBA) to ensure consistency and market-wide endorsement.
  • Spreadsheet templates and XML standards will be made available; eventually feeding into the DA Data Submission, Access and Transformation Service (SATS) Solution.

What difference will this make to practitioners?

  • Delivery of an agreed standard for coverholder reporting for DA classes of business covering risk information.
  • Coverholder reporting preparation made easier with a single set of DA premiums, claims and class of business data requirements.
  • Enabling better quality and more granular data by London Market participants.
  • Consistent standards makes London Markets an easier place to do business for coverholders.
  • Standards provide more potential for automation and straight-through processing.

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

  • A number of standards have been agreed with working group approvals by class of business and are awaiting Association approval.

2017 Priorities

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

What is it?

  • The data services platform will standardise and centralise the collection, validation, processing and supply of DA data across the market in order to maintain consistency and eliminate duplication.

Why do we need it?

  • The DA business data is currently provided to market stakeholders in an inconsistent manner.
  • Coverholders / TPAs currently  need to service multiple data requests in different formats at different times, building numerous interfaces to deliver this data.
  • Carriers and brokers encounter data gaps and inconsistencies in the data they receive and find it difficult to electronically consume data to meet their processing, reporting and analytical needs.

How is it used?

  • Coverholders, brokers, TPAs and carriers submit data into the new service.
  • Submission options enable automation, straight-through processing and one-touch data capture.
  • The information requirements are consistent - these are the agreed data standards.
  • Data is submitted at a granular level and at an agreed frequency.
  • Data is stored, validated and transformed at a granular level through standardised outputs and/or reporting tools.

What difference will this make to practitioners?

  • Significant reduction in time and effort spent on data transformation, data cleansing, and processing for bordereau file conversion.
  • Availability of cleansed data in flexible formats enable carriers to perform risk / exposure analyses on accurate and standardised data sets.
  • Centralised data collection improves the standard and quality of Binding Authority Agreement reporting.
  • Transaction-level data supports higher quality reporting, e.g. tax, regulatory, conduct risk, exposure management, catastrophe modelling etc.

What are the key dates in 2017?

Activity Target date
Product selection and commencement of build Q3 2017

Key Progress to Date

  • Issued and received request for proposals (RFPs) to tender for DA Data SATS.
  • Initiated selection process with market panel.

2017 PRIORITIES

  • Commence build on DA Data SATS.

What is it?

  • Centralising and automating the coordination and management of coverholder/TPA audits, with the ability to perform solo and self-managed audits.
  • This is developed as part of a centralised Audit Information Management System (AiMS).

Why do we need it?

  • Coverholders currently undergo multiple audits by multiple brokers and carriers separately.
  • This impacts cost and resources in support.
  • The solution streamlines the coordination and management of the audit process, to ease the administrative burden on coverholders / TPAs and carriers.

How is it used?

  • Timing, scope and other specific requirements with coverholders / TPAs are agreed and the Audit Information Management System (AiMS) automates the coordination, scheduling and management of audits and their outputs.
  • AiMS is a web-based application which can be used globally by market participants.

What difference will this make to practitioners?

  • Reduces the number of audits that a coverholder has to support to one per year.
  • Reduces cost and administrative burden on managing agents associated with coordinating and scheduling multiple audits.
  • Removes duplicated effort of brokers and carriers auditing coverholders individually.
  • Cost savings from reducing number of auditors being commissioned.
  • Once issued, audit recommendations are responded to once reducing admin.
  • Streamlined and consistent audit checks make it easier to do business in the London Market.

What are the key dates in 2017?

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

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.