Time to take a breath
For many, the start of New Year is a time for new resolutions – looking at what the next 12 months might bring and what they want to achieve. In re/insurance it is also a major inception date and the culmination of an exceptionally busy period. In the wider world, it seems to be a time of unprecedented uncertainty. In Britain that seems to be focused on the ongoing and complex arguments over our future relationship with the EU. So I, for one, would like to take a breath and use this opportunity to reflect – to talk about, and celebrate, what we have achieved in our quest to make London an easier place to do business.
Moving risks around the market
The number of risks bound by PPL increased by 202% over 2018, with 38,575 risks bound during the year, compared to 12,776 risks in the equivalent period at the end of 2017. Over the same period, the number of endorsements requested increased by over 500%. Just last week (5 February) the LMG announced the most recent adoption numbers of e-placement and I am delighted to say that they were 39% for Lloyd’s and 41% for the IUA. The fact that both volumes and adoption have risen significantly is great news for the market as a whole. Going forwards, we must maximise the potential benefits of online placement by using PPL across the full process from quote to bind.
All of this is hard proof that, as a market, we are delivering on our promise to create simpler and more efficient processes. These numbers reinforce the tremendous work that so many people across the market have put in to improve the platform over the last year. And that work will continue. In 2018 Reinsurance, Accident & Health and Aviation were added to the platform, along with the integration of quote data for Structured Data Capture (SDC) and Brexit reporting requirements.
By December 2018, 89 firms had engaged with SDC, 60 firms have signed the Market User Agreement with 45 firms actively submitting. By early January, over the previous 12 months, 59,265 submissions had been made with December seeing the highest total ever. Accuracy has consistently remained over 99%.
Making life easier for coverholders
For the delegated authority market, there were some significant successes. Phase 1 of the Delegated Authority: Submission, Access and Transformation Solution platform (DA SATS) was delivered on time and included support for the Lloyd’s Brexit solution. By December, all managing agents involved in live delegated authority business had signed up for it and 88 brokers engaged in the coverholder market have also signed up. Users have processed over 2,000 completed contracts, exceeding the target for Q4 2018.
The Atlas and BAR project (now known as Chorus) was kicked off and completed end of design in January 2019 – the scope now includes risk-based oversight to improve the coverholder proposition. This is planned for delivery in Q3 this year.
Moving data around the market
Phase 1 of the Data Integration (DI) programme is complete – on time and under budget. The services that are now in business as usual being run by LIMOSS are: Market Business Glossary, Master Data Management, Common Services (Single Sign-On, API Gateway and Secure Data Exchange, brought forward from Phase 3), data messaging standards developed with ACORD and the Data Management and Governance forum. In addition to Phase 1 scope the DI workstream achieved GDPR compliance on time to meet the regulatory deadline, and supported the delivery of management information for the PPL mandate.
SDC, DA SATS and the Market Business Glossary are all live. 161 organisations are now registered to Single Sign-On which enables firms to access LM TOM services via a single point of entry with the same credentials (currently DA SATS); the Common Services API Gateway is also live, providing a key component to implement integration and drive the journey towards straight-through processing.
Making transactions more efficient
Although there have been delays with CSRP due to the delayed re-platforming of the IMR, which is outside TOM scope, five companies are live and the first claims transaction has been processed. DXC and r10 (a consultancy appointed by DXC) continue to have positive discussions across the market.
LIMOSS was established last year, earlier than we had originally planned, to create a single permanent team to define and execute a sourcing strategy for the London Market as a whole and to oversee the services, manage service providers and liaise with carriers and brokers. It is taking forward responsibilities across DXC contracts, SDC, TMEL and all DI solutions.
Phew! This feels like a lot to report for a year. I say this a lot – but I don’t think it can be said too often, these achievements are absolutely because of the many, many people in the market who give their time and expertise to working with the LM TOM team to help us get this right. And our future success is entirely dependent on you – the leaders of today and the talent of tomorrow. It is your investment in new technologies and ways of working that will sustain London’s position as the pre-eminent market for risk transfer into the 21st century.