The promise of Blueprint Two, which details the transformation plan for Lloyd’s and the London insurance market, is vast. The plan to advance the largest insurance marketplace in the world is a major collaboration between the Corporation of Lloyd’s, insurers, brokers, market associations, customers, suppliers and many others, and aims to establish new ways of doing business.
The London Market Joint Venture (LMJV), a joint venture established between Lloyd’s, DXC Technology and the International Underwriting Association (IUA), will execute Blueprint Two as a digital platform to fundamentally change the operating model of the London market. DXC recently announced the successful completion of the London insurance market’s major data center migration to the cloud, which involved moving 70 billion rows of data, 700 IT assets and over 200 business applications.
As Lloyd’s transitions to the digital marketplace, working with the London market and the global insurance community to build solutions, the plans are to make placement, placement processing, claims processing and settlement better, faster and cheaper. Expectations are that this will enable brokers, insurers and partners with delegated authorities to operate at a materially lower cost — estimated at over £800m in reduced costs in total. Aside from playing an integral role with the LMJV, Lloyd’s and the IUA, DXC is also a major supplier of policy administration systems that provide mission-critical support for nearly 100 brokers and insurance carriers operating day-to-day in the London market.
The golden thread of data
How will the London market fulfill these expectations? The mantra is putting data first in a digital environment; it’s the power of “right first time” data.
How will DXC help the market get there? The same way: taking a data-first approach in both the new DXC Assure Market Link solution and the current DXC Assure solutions — and ensuring the seamless flow of the right data through the business process at the right time. Call it the “golden thread of data.”
As Blueprint Two evolves, the immediate areas of focus are two key assets in the digital journey:
1. Core Data Record (CDR v3.2) — which provides the critical transactional data that needs to be collected by the point of bind to drive downstream processes: premium validation and settlement, claims matching at first notification of loss, tax validation and reporting, and regulatory validation and core reporting
2. Market Reform Contract (MRCv3) — which enables accurate, ACORD standardized data, including the CDR, to flow through the entire insurance transaction lifecycle with minimal human intervention
DXC will keep its solutions current as the situation progresses. For the majority of software customers operating in the London market, DXC Assure Market Link provides a way for DXC customers to stay on their current DXC application and preserve their investments. It a software-as-a-service solution that works with existing DXC or third-party systems to meet the new digital requirements, extending the useful life of existing systems, enabling digital compliance with the CDR and MRCv3 in a simple, low-cost way.
Existing DXC customers also have the option to upgrade to one of the global specialty DXC Assure solutions: DXC Assure Broking and DXC Assure Commercial and Specialty. These solutions have native digital support for Blueprint Two. Market Link provides a stepping-stone to DXC Assure, introducing some of the architecture and components and helping with future data migration.
Looking further out this year, DXC is keen to help customers with Blueprint Two capabilities such as ACORD eBOT (Electronic Back Office Transactions) and eCOT (Electronic Claims Office Transactions) messaging, for the accounting and settlement of premiums and claims and the notification of claim movements. In addition, the Market Link roadmap also includes support for interaction with electronic trading platforms to provide full end-to-end coverage.
Digital mastery in the London insurance market
It’s a great time to be involved in all aspects of insurance market modernization, whether it be extending the useful life of prior investments or investing in the new.
Digital change is now table stakes for doing business. In an industry all about managing others’ risk, those that do not take action now put their own business at risk. Change is in the air; the tools are there. Let’s get started.
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About the author
Steve Reid leads global specialty insurance offerings in DXC’s Insurance Software & BPS business, and has responsibility for software assets serving commercial insurance brokers and MGAs. He is an insurance domain specialist with more than three decades of experience, working in the London insurance market. He has held various insurance leadership and strategy positions.