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Future Processing is working with market participants to deepen the knowledge about data transformation in the London Market and translate the standards and requirements into practical implementation steps.
With that objective in mind, we were privileged to host Cassandra Vukorep, the Chief Data Officer for Lloyd’s of London, at our recent InsurTalk event – InsurTalk: Navigating Data Standards at the London Market.
At Future Processing, we serve as a trusted technology consultancy and delivery partner, drawing from 25 years of experience in Specialty, Marine and other lines of the insurance industry, as well as profound comprehension of the London Market.
“(…) the London Market (…) is an ecosystem, where everybody speaks different languages, with different dialects in the way that they exchange data,” said Cassandra.
In her speech, Cassandra, who also chairs the Core Data Record (CDR) committee of the London Market’s Group (LMG) Data Council, addressed the critical need for establishing data standards in the industry, sharing real-life examples and success stories.
Interested in learning more? Dive into our article to find out about Cassandra’s crucial views on the London Market data challenges and the opportunities coming from creating a common framework for data management and communication.
Key takeaways
- The London Market data challenges create inefficiencies and inaccuracies that hinder the market’s overall growth. Cassandra described the most prominent ones: legacy data systems, fragmented data, manual data capture, and compliance issues.
- The benefits of the CDR implementation include using richer and wider, consistent sets of data, delineating the data, maintaining its integrity, and enabling efficient data management across the market.
- Proper foundations and data literacy are essential for the CDR and Market Reform Contract (MRC) to encourage progress – they won’t solve all your data issues at once, but they will move your business forward, improving data accuracy by establishing a standard within the market.
- Examples of real-life success stories from the Ruschlikon initiative include PartnerRe improving claims turnaround time by 30% thanks to the ACORD GRLC data standards and AXA XL reducing information transfer times by 60 days by adopting the EBOT Trading Model.
- Future Processing’s Data Harmonisation Framework is designed to facilitate data standardisation in accordance with the latest data governance principles. Our robust solution enables Specialty Insurance to take advantage of all the benefits discussed during the InsurTalk event while minimising transformational risks.
What are the data challenges in the London Market?
Cassandra began her engaging and insightful presentation by identifying four primary challenges in the current data landscape:
- Legacy data systems: the existing systems are outdated and often patched together with makeshift solutions, leading to inconsistencies and errors.
- Fragmented data: data is scattered and unstructured, making it difficult to consolidate and analyse effectively.
- Manual data capture: reliance on manual data entry introduces human errors and slows down processes.
- Compliance challenges: differing interpretations and standards which can lead to compliance issues and regulatory risks if not addressed.
These challenges create inefficiencies and inaccuracies that hinder the market’s ability to innovate and grow.
Data landscape – what does the future hold?
Cassandra moved on to discuss the future data landscape and the establishment of data standards.
This standardisation is crucial for achieving operational efficiency and scalability on the London Market, because “we have to all interact, and if we’re not interacting seamlessly, all it does is create speed bumps along the way. It slows down the process.”
She emphasised that implementing the standards would ensure data completeness, include the required granularity, enable interoperability, and improve efficiency.
It would also streamline data flows for brokers who:
Real-life stories – the Ruschlikon initiative’s success
To illustrate the advantages of standardisation and the collaboration with ACORD, Cassandra presented “(…) really great case studies with Ruschlikon”, which prove that the data standards really work and bring many benefits to the table.
The Ruschlikon initiative has successfully implemented the EBOT and ECOT ACORD Standard specifications:
The case studies mentioned demonstrate significant improvements in efficiency, data integrity, cost reductions, and overall effectiveness.
The Core Data Record (CDR) – why is it vital?
Cassandra Vukorep highlighted the Core Data Record (CDR) as a critical component of Lloyd’s data strategy.
Aligned with the ACORD Global Reinsurance & Large Commercial (GRLC) Standards, the CDR serves multiple purposes, including:
- Lloyd’s tax validation and calculation,
- Lloyd’s regulatory reporting,
- claims matching,
- accounting and settlement.
“What are the benefits of the CDR? – asked Cassandra.
“Richer, wider set of data, consistent structure. It is transactional data, but it’s transactional data that you can use”, she explained. These standards also facilitate better data governance and lineage, reducing errors and increasing the accuracy of market operations.
Cassandra emphasised the importance of data literacy within organisations, advocating for robust data ownership and stewardship programmes. These programmes help ensure that data is understood, trusted, and used effectively across all levels of an organisation.
Debunking the CDR-related myths
Approaching the end of the presentation, Cassandra addressed several myths surrounding the CDR. She clarified that:
The CDR also does not imply straight-through processing but helps automate processes and improve data accuracy by establishing a standard within the market.
Assisting the insurance sector in digital transformation
Future Processing’s InsurTalk event was an afternoon full of insightful discussions and presentations from London Market thought leaders. As Blueprint Two’s Phase 1 cutover draws near, navigating data standards are more important than ever.
Having worked with Lloyd’s of London’s syndicates, insurance companies, and global insurers, we possess a deep understanding of the London Market. Our Data Harmonisation Service ensures data reconciliation by implementing quality assurance standards and constant monitoring throughout the project lifecycle.
As your trusted partners, we align with your business objectives, focusing on strategic agility and stakeholder-oriented design. We also excel in integrating large amounts of data, enabling its fast processing in real time.
If you need support in achieving your digital transformation while standardising data, contact us – we will choose the best options for your unique organisation to elevate your business.
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