It’s the second instalment of the market’s Future at Lloyd’s strategy, a programme which promises ‘to build the most advanced insurance marketplace in the world’.

Much is planned for coverholders, those organisations which underwrite or manage claims on behalf of Lloyd’s syndicates under a binding or delegated authority contract. Chief among them is the promise of ‘straight-through processing'. This technological development would allow risk and claims data to be entered only once, by the originator, then to flow through virtual connections in real time to inform brokers and carriers. Executed well, straight-through processing would put an end to the need for bordereaux.

Lloyd’s will facilitate this achievement not by mandating new systems, but by setting data standards. All participants in the value chain will be required to adhere to the standards, and either use Lloyd’s existing but enhanced systems, or link their own underwriting and claims platforms (or those of brokers and other third parties) to a new ‘data spine’. 

A new Lloyd’s-owned platform will provide Lloyd’s coverholders with a risk placement and policy administration system (in practice, an overhauled version of Lloyd’s existing Coverholder Workbench). The system will validate, record, and distribute consistent and reliable risk, paid premium, and claims data through a new ‘Delegated Data Manager’ solution (the new name for Lloyd’s DA Sats standard). 

For DA claims, the system will remove the duplication and time-consuming manual tasks that characterise the current process. ‘We are building a solution with the capability to remove bordereaux, and where loss funds are no longer necessary,’ Lloyd’s declares in Blueprint Two.

The elimination of data rekeying, bordereaux, and loss funds would be significant for the market as a whole. We at Miller are supportive of the promised changes, the first of which are scheduled for delivery in the first half of 2021. For some time Miller has been working closely on straight through data transmission initiatives with our North American clients. Premium, risk and claim XML messages are received from clients, validated and processed in real-time and a facility for clients to confirm the data is available in Miller Online Services; our portal to present and play back analysis. We are currently developing an API for risk data to further improve system-system links with our clients and we expect this to be live early in Q1 2021. 

Please get in touch with your usual Miller contact for further information on this work.

We will keep you informed of the progress of The Future at Lloyd’s reforms, but in the meantime, anyone who’d like to read the 104-page Blueprint Two will find it here.