What is it and why does it matter, especially for people and companies not in the London market?
The London Market Target Operating Model is a programme of initiatives which are designed to make London grow by making it an easier place to do business. To enable this, we will make the market highly accessible, efficiently run and relevant to the needs of our customers. We will deliver simplicity and reduce cost so that our participants can concentrate on using their expertise to deliver the value proposition that makes London so compelling.
In a highly interconnected world, there are very few (re)insurance people and businesses that do not have some contact or ties with the London Market, so any efforts to reduce costs and complexity can touch many parts of the global insurance market.
Could you shortly illustrate the key goals, main components and current status of London TOM?
The London Market Target Operating Model (TOM) programme saw good progress in 2016, building solid foundations for the new model. Progress on the main components includes:
Adoption of electronic placement. Financial and Professional lines are growing strongly on Placing Platform Limited (PPL). With 2,675 users, more than 1,600 risks have now been bound and there are 75 carriers, including three MGAs and 18 brokers, signed up to the platform.
Money moving faster and more efficiently around the market. More than 1,850 messages have been submitted since the Central Services Refresh Programme (CSRP) launched the premiums channel. The claims channel is scheduled to go-live in March following market testing. Then brokers will be able to process both premiums and claims in the same way they can in other global markets.
Making life easier for coverholders. 1,500 fewer audits will take place in 2017 because of the automated coordination of 1,130 coverholder audits, covering 3,150 relationships. This elimination of multiple audits means our coverholders can focus on writing profitable business and providing clients with outstanding service.
Speaking the same language. Our market uses the same words but often different people mean different things. The feasibility and appetite for the market to access unique sources of master data online has been established, and a long term Master Data Management solution designed. A data pilot has been launched to establish an easily accessible, single source of definitions and rules, reducing costly errors and re-work.
One step closer to straight-through processing. TOM solutions have to be joined up to make the entire value chain as seamless as possible. A successful structured data capture pilot has been completed, converting information from a number of sources into a universally acceptable message to enable straight-through processing.
TOM and Ruschlikon
What is then the connection between London Market TOM and Ruschlikon – why and where do you collaborate, and where do you see the synergies?
Our main collaboration is around our Central Services Refresh Programme (CSRP) which is helping us to move money around the market more efficiently. We are looking to define and adopt a single process for all markets to account and settle for their premiums and claims.
Ruschlikon have made excellent progress in defining all of this outside the London Market and the LM TOM can learn from and align to this.
Another area would be post placement. Currently, there is not a link from placing to accounting. We are looking to achieve one touch data so that accounting messages are automatically created from the placement. We are very confident that defining the link between placing and accounting will benefit both communities.
This interview was first published in full on 20th March on the Ruschlikon website and is available here.