Joining up the dots
When we began the journey to make London an easier place to do business, and we looked at why previous modernisation attempts had faltered, we were very clear that we had to look at improving every step of the risk transfer process – starting from the quote stage to when a claim is paid and then the risk is renewed.
Then, as solutions were created, we had to ensure that they could be integrated into the broking and underwriting businesses and systems in the market. One-touch data capture, with standardised data, is our goal and making sure that all the dots could join up is a vital part of the process.
Around three years down the line, there has been significant progress not only on completion of our solutions but also in their adoption by market firms, and I am delighted that integration is starting to get real traction.
Getting on board
This week saw the launch of the London Market Group’s campaign to build awareness of the need to modernise our market and support the adoption of Placing Platform Limited (PPL). Digital technology is the most powerful driver of change in the world today. We need to embrace it to modernise our market, and PPL is the front end of that process. The figures show that overall around 10% of risks are now being bound on PPL, with Financial and Professional Lines as the star performer at just over 60 per cent. The number of marine policies bound using the system has leapt 37% in the last year. Daily average practitioner log-ins have doubled since January 2017. However, there is more to go to build on what we’ve started. You can visit the campaign website to find out more about the platform so that, together, we can shape a stronger future for our market and our clients.
Structured Data Capture (SDC) is also making strong progress and almost 80 carriers have engaged so far with the service. It enables data from documents such as Market Reform Contracts (MRCs) and binding authorities to be extracted automatically, transferred to underwriters’ systems, and then re-used many times. Through integration with PPL, it brings the market one step closer to straight-through processing. We built this service in close collaboration with the market and ensured we delivered what they asked for – on time and on budget. Over 23,000 MRCs across all classes of business have been submitted to the service with 99%+ accuracy. Chubb is the first carrier to integrate the SDC service, going live on a ‘business as usual’ basis with MRCs. It will review the use of the additional document types that have recently been launched.
We are also making great progress in improving the way we deal with coverholders. The vision is that they have a single audit, compliance processes are consistent and done only once and that data is collected and shared with the relevant stakeholders. Due to the efforts of many people across the market, and the delivery of the LM TOM team and our technology partners, we have made real progress across all three of these areas. In terms of compliance and audit, the first quarter of this year saw 100% adoption of both services. In May, we announced that a contract had been signed with Charles Taylor InsureTech Limited to provide a central service to standardise the collection, validation, processing and supply of delegated authority data across the market. A number of market firms are already testing this technology as the build continues.
By uploading data directly into a secure central platform, coverholders will no longer need to email unsecured spreadsheets with premium, claims and risk data. This takes away a significant competitive disadvantage for the London market and makes us much easier to do business with. It also helps to protect our customers’ data and increase efficiency by eliminating effort and duplication. If the market coalesces around this solution, it will gain economies of scale and a simplicity of process; benefits that will be lost if individual companies look for their own alternatives.
Active partners for integration
We know that the missing link in many cases is that LM TOM solutions are not yet integrated into the internal systems of brokers and underwriters in the market. That integration work is critical to our market’s success – and we are reliant on the work of vendors and suppliers – many of whom have committed to the success of the TOM and the London Market, and are actively building links into LM TOM solutions. I am very grateful for their efforts and will use a future blog to highlight key achievements.
We are also very grateful to the many, many, firms who are investing the time and effort to integrate LM TOM solutions into their operating models. We have some positive stories about these efforts and will be highlighting them in our LM TOM communications.
The essence of the London Market is collaboration. We worked together to build and deliver LM TOM solutions successfully. We shouldn’t forget how hard we’ve worked and how far we’ve come. Now, the adoption and integration work is the final step to reaping the benefits of our investment and hard work.
We are all interwoven, and we all want the London Market to be the best (re)insurance market in the world – for our customers and for the firms that exist within it. We are so close now but success will only come when we have joined up the dots across the whole value proposition and we must keep going until we have achieved what we set out to do three years ago.