Placing Platform Limited (PPL)
Technological change is bringing competitive pressures to many different parts of the insurance industry. Exploiting new sources of data, for example, firms are now tracking everything from driving speeds to boiler temperatures.
At the same time London’s business processes are being modernised to ensure our market keeps pace with this wider transformation and is an efficient place in which to transfer risk.
An important milestone in this development took place in 2016 with the live commencement of Placing Platform Limited (PPL) – London’s electronic trading system. The system went live on July 11 with brokers and underwriters exchanging information on terrorism risks, and within the first hour, the first risk was bound.
Since then momentum has been building with the addition of further lines of business and a month by month increase in volumes processed. Financial and professional lines were added later in the year and by early 2017 more than 1,600 risks had been bound and over 2,700 endorsements made.
Further enhancements to the platform continue to be made and the range of business classes expanded. Ultimately, the platform aims to speed up the quotation and binding of risks across the market and improve access for international clients.
Major efficiency benefits, however, will really emerge with the development of data integration initiatives. The IUA is taking an increasingly active role in efforts to improve the availability and quality of shared market data. Messaging standards and the capture of data in a structured format will allow PPL to deliver greater transparency, clearer audit trails and improved reporting capabilities.
Central Services Refresh Programme (CSRP)
The Central Services Refresh Programme (CSRP) aims to remove London-specific systems and instead allow brokers to communicate with the market’s central bureau service using global insurance messaging standards. The first phase of this project went live in 2016, focussing on premium submissions, and these are now compliant with internationally recognised ACORD standards.
Building on the success of the premiums launch, the next stage of development was claims payments, which went live in early 2017 for new claims. Further enhancements will now be made to also process legacy claims i.e. those claims where the original premium was not processed via the new system.
As this project continues it promises to reduce errors in the processing of insurance contracts and remove duplicative administration efforts.
Insurers’ Market Repository
Over the last year preparatory work has been undertaken for an upgrading of the Insurers’ Market Repository. This facility supports the electronic processing of premiums, policies and claims by storing some 60 million documents and is hugely relied upon by companies. It is essential, therefore, that its transfer to new software in 2017 takes place smoothly and does not cause any disruption.
London Market Target Operating Model
A blueprint for the future development of all modernisation projects was published in 2016. The Target Operating Model (TOM) document identifies costs and benefits for each initiative. Its purpose was to make clear the overall structure of the TOM programme, review current initiatives to confirm that they are still valid priorities and outline options for future work.
The blueprint was developed in a modular manner, allowing the market to decide the projects it wishes to implement and their timeframes, after weighing expected benefits against investment costs.
In addition to the projects already mentioned above, the IUA continues to support work on delegated authority business. This effort is addressing the inefficiencies of legacy systems by centralising and streamlining processes.