Driving New London Market Business with Blueprint 2
DOCOsoft attended the digital return of Insurance Insider’s London Market Conference at the end of 2020, on the day of the launch of the Lloyd’s Blueprint 2. The panel session devoted to the Future at Lloyd’s therefore had a lot to say on the subject of Blueprint 2.
According to one panellist, the Future at Lloyd’s team decided to focus on three main areas, being claims, open market placement and delegated authority. That theme continues within Blueprint 2, however, it is boosted significantly by a focus on how you knit them all together. We are pulling together a golden thread of data to stitch all these systems together through a digital spine.
In the document you will therefore see lots of talk throughout about a data store, a digital gateway, a data spine, a digital spine within Blueprint 2. We can do lots of really fun and interesting stuff looking at new business and going after new business, but obviously we’ve got to get our fundamentals right around the methods of placement and open market delegated authority. It will come on to reinsurance later next year, but also around the claims process. That’s what impacts our clients the most, and where we have the most to gain from an efficiency perspective, by linking them together digitally.
A digital gateway is how data will flow, for example, from PPL. It will be validated, and data will be enhanced through the digital gateway, which will flow through the processes and systems that we’ve got within the London market. It is fundamental stuff that we really need to work hard to get right within our marketplace. We could spend lots of time creating the most beautiful, wonderful systems in the world with lots of different functionality but actually we’ve got to focus on data. Many CEOs within the managing agent community talk about focusing on that need to get data straight out of PPL, and straight into their policy administration systems.
Brokers want to move data from their booking administration system straight into PPL and then push on through the life cycle so that’s where this focus is. There is much talk in Blueprint 2 around working together with the data set, with the providers of data standards that are out there at the moment, enhancing those standards and coming up with global data standards.
Part of what the digital gateway will do, once we have agreed to an agreed set of standards, is validate that the data being submitted at point of bind is correct, and will then flow on through the system so we start to remove the errors that we’ve got, and speed up the process significantly. That is how the market will start to strip costs out of the system because the cost of that rework is astonishing. Lloyd’s have put out a figure with a press release around Blueprint 2 that they expect at least £800 million of cost savings across the market.
There will undoubtedly be difficulties in creating an environment where everybody is following the right data standards but the best way of adopting those is to reduce the error rate in the marketplace. If we’re going to get efficiencies, we have to eliminate that error rate, and to have straight through processing, you’ve got to have accurate data first time in.