Last month’s announcement that the market has agreed on a data standards methodology and the content of the Core Data Record is an important step on our road to digitalisation – but even more it is a powerful reminder of what we can achieve collectively through collaborative action.
Over 50 market practitioners have given their time, experience and energy to work on either the Data Council or its supporting Technical Group. This wealth of expertise has come together to agree the data that will be submitted digitally and re-used consistently by all parts of the market in the best interests of our clients.
By working together across the market, we have been able to understand the issues from all parties and unanimously agree that ACORD will be the market’s chosen data standards methodology, as well as the content of the Core Data Record (CDR) to align with ACORD’s Global Reinsurance and Large Commercial (GRLC) standard.
Having one common ‘language’ for data will not only benefit the London Market’s internal processes but make it easier for insurance markets across the world to connect with London, accessing its pool of capital and talent. Although the first steps have focused on the accounting and reconciliation process, they lay the foundations to support future market initiatives including pre-bind placement activity.
But this is just the first two stages. The next steps are computable contracts and the data assembly process, roles and responsibilities. The final stage is on API standardisation. As we go through each stage, we will engage with detailed experts to ensure the “adoptability” of what we’re trying to achieve. So, we will now move on to the next phase of work; developing the intelligent Market Reform Contract and deciding on the optimal process for how data should be assembled, as well as who inputs which piece of data, to what degree of quality, at which point in the process.
It is very easy to focus on the process, but I am keen that we don’t lose sight of the prize for getting this to work. At its very heart is a better service and experience for our clients – a benefit that is critical to everyone in the market. With standardised data we will be able to meet their needs faster and assess their risks with greater accuracy. In an era of rising inflation, we will also be able to reduce costs - through both increased accuracy (currently only 25% of submissions to the bureau are right first time) and reduced rekeying (it is currently estimated that an insured’s name and address is keyed in across the market at least 10 times per risk). There is also an expectation of faster cash flow as back-office services become automated. Customer satisfaction and reduced operating costs are prizes worth fighting for. I am tremendously encouraged by where collaboration has got us so far, and excited about how much more we can achieve together.
