WIN Magazine - Spring 2012 - (Page 26)
FEATURE: On the Cutting Edge of Technology
Closing the gap in 2012
BY ADAM STAFFORD HEAD OF ELECTRONIC DISTRIBUTION AT LLOYD’S
S MOST READERS of Wholesale Insurance News know, Lloyd’s has a history of underwriting complex and/ or unique risks, in the process developing tailor-made risk transfer products for its broker and coverholder partners around the world. This outcome typically requires the expertise and capacity of multiple syndicates in the market, a process that defines the essence of Lloyd’s time-tested “subscription” model. LLOYD’S COMMITMENT TO TECHNOLOGY As outlined in our recently published three-year plan, modernization through better use of technology to drive down costs, improve the customer experience and simplify market access is a key strategic objective for Lloyd’s between now and 2014. As technology advances, it presents new opportunities for the Lloyd’s market to access business globally while reducing acquisition and servicing costs. MARKET MODERNIZATION To maintain London’s position as the world’s leading international (re)insurance centre, the market’s operating environment needs to be improved to be competitive and efficient. To this end, the Lloyd’s three-year plan sets forth the following guiding principles for market modernization: • To improve market efficiency by automating manual processes where appropriate, reusing data across the risk lifecycle and performing data validation at the point of creation • To improve data quality through the imposition of ACORD standards and policing the use of these standards via a control framework • To improve customer service and the Lloyd’s market’s ability to respond to changing market trends by allowing flexibility in the provision of non-core back office functions, while maintaining the provision of core central services in a modern environment • To work on modernisation initiatives in conjunction with the market Whereas the collaborative nature of the Lloyd’s market defines our reputation as a risks solution provider, it can also challenge the development of a single end-to-end technology 2 6 | v i e w t h i s i s s u e a t | www.aamgawin.org
solution that works for all stakeholders. Recognizing this, we’ve developed standard information sets about the risks traded between stakeholders’ systems around the globe. These standards, which have been developed within the ACORD framework, are being rolled out in stages this year. THE MESSAGE EXCHANGE INITIATIVE The Message Exchange, a key piece of infrastructure designed to support the sharing of standard information between brokers and underwriters at Lloyd’s, plays a vital role in the advancement of our technology platform. In a market with characterized by multiple syndicates subscribing to a policy or program, it enables the broker to maintain a single connection with the exchange rather than having to connect with each and every market involved in the placement. Managing general agents, referred to as Lloyd’s coverholders in London, are also an area of focus from a technology point of view. Following an in-depth review in 2009, there was a renewed focus on improving the reporting process that coverholders undertake when partnering with Lloyd’s. The aim was to simplify and provide more consistency to enable them to make better use of technology for reporting going forward. Lloyd’s has since developed a suite of reporting standards in the ACORD framework, available at www.lloyds.com/ coverholderreportingstandards. These standard reports are accepted by all brokers and managing agents in London. Lloyd’s has been working with key Agency Management System vendors such as AIM, ConecptOne, EpicPremier and Omni7 to ensure they can provide the data required without the coverholder needing to rekey data. RECENT DEVELOPMENTS: AUTOMATING THE UNDERWRITING PROCESS For many years Lloyd’s has been exploring opportunities to improve the efficiency of the face-to-face underwriting process in London with technology. Many believe there is a need to introduce technologies for storing contract documents during negotiation in some form of shared Web-based (cloud) storage. The potential of this option will be examined during the first half of 2012.
Table of Contents for the Digital Edition of WIN Magazine - Spring 2012
Cover Story: The Catlin Arctic Survey: How an Insurer Decided to be in the Forefront of Environmental Research
The Year in Review: Natural Catastrophes in 2011
The Impact of Climate Change: An Interview with Ernst Rauch
Wholesale Agents & Insurers Embrace Tablets
Technology@Lloyd’s: Closing the Gap in 2012
A Unique Perspective: An Insight on the Technology Transformation
An Email Commentary: Liability Exposures and How to Prevent Them
Marketing on the Internet: New Opportunities for Wholesale Insurance Agents
Applying “Moneyball” Principles to General Agencies: How Much Value is Trapped Within the Back Office?
IN THE WIN-NER’S CIRCLE: A Discussion with Tom Kuzma
INDEX TO ADVERTISERS / ADVERTISERS.COM
WIN Magazine - Spring 2012
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