Could Chart Help Incubate and Further Innovate “Straight-through Processing” for “TOM”?

The London Insurance Market Business Process and Technology Advisory

Continuing on the theme from our discussion in the prior issue of the CHART-exchange publication on London Market modernization, in this article let’s further explore work being done for Delegated Authorities within TOM, propose a potential expanded role for CHART in this workstream, and finish with overall highlights on recent successes throughout the whole of the London Market Target Operating Model (TOM).

For those of us who were able to attend the Chart Goes to London (“CGL”) event at the Hilton Doubletree Hotel on Pepys Street in the City of London, we heard TOM-related comments directly from Peter Montanaro, the TOM Champion for Delegated Authority, on 10 May 2016. As you may have noticed during his overall Lloyd’s Coverholder Department presentation, Peter elaborated on aims to (a) further reduce the amount of duplicative requests and improve transparency of data and information to all relevant stakeholders in the delegated authority process, (b) continue improving the coordination and streamlining of coverholder audits and next steps, and (c) introduce standards for on-going compliance excellence through service level agreements and other centralization opportunities.

“By [keeping our eye on TOM], we minimize our chances of investing in technology, process, and/or human resources that only solve for yesterday’s market and we maximize our chances of positioning ourselves for the London Market of tomorrow.”

As we know, all of these goals are very relevant to CHART and will impact our collective future experience as a result of the London Market TOM. Additionally, Peter raised the topic of London Market efforts to improve and expand the insurance community’s creation, usage, and adoption of common data standards.

Among other benefits, the expansion and usage of ACORD XML data sets will allow the delegated authority community to continue driving towards our collective vision of straight-through processing of the risk, premium, and claims data within the London Market. As we heard from Peter, work is already underway on these funded, market-sponsored, and/or market-supported initiatives.

While this work moves forward, let’s also continue to think about how we might contribute to the overall process and let’s act accordingly where it makes sense to do so. As an example thought, while we endeavor to help new U.S. coverholder relationships blossom and as we accelerate the London delegated authority new business cycle, we may want to keep a close eye on TOM during our journey. By doing so, we minimize our chances of investing in technology, process, and/or human resources that only solve for yesterday’s market and we maximize our chances of positioning ourselves for the London Market of tomorrow.

As we know, legacy solutions likely contributed to some of the competitive challenges presented in “London Matters” by Boston Consulting Group to the London Market Group (LMG). That 2014 report inspired the opportunity for TOM and Project Tomorrow in the first place (see my last CHART article for reminder details). Speaking of Project Tomorrow, another possibility for more advanced TOM engagement by CHART would be active participation in the incubation and testing of the market’s innovation and modernization agenda.

More specifically, a savvy group of London risk takers, vendor partners, potential coverholders, coverholders and their London brokers could pool together through our platform to advance or accelerate the efforts of Project Tomorrow and deliver additional London Market straight-through processing success.

What do we mean by straight-through processing? To a large degree, we mean the evolution of passing insurance risk data, premium data, and claims data between coverholder, broker, and London risk taker(s) in various monthly spreadsheets and in various formats (which is mostly what happens today in the delegated authority community) to a modernized process where XML-formatted data messages are automatically passed and distributed to relevant parties through automated interfaces and in accordance with previously agreed international insurance standards.

Among other advantages, this modernized process means (a) no re-keying of data and reduced possibility of human errors, (b) reduced compliance risks, (c) greater end-to-end insurance processing efficiency, and (d) faster and more effective management information and improved analytics. This is quite achievable. By way of example, an Australian coverholder (and their London constituents) already made this happen on certain insurance business and with particular data sets almost a year ago using market resources available today and I have led successful projects like these in other international insurance contexts throughout my career.

As a result, it should be easy to see that our collective on-going attention to these subjects and supporting the London Market’s modernization agenda from the CHART platform while improving our own business outcomes has never been more compelling. In the same spirit of attention to these topics, I would like to close by sharing some brief general updates on additional progress being made throughout TOM’s other workstreams in recent weeks.

Although we have not yet discussed details on other TOM initiatives in past CHART publications, it is important to begin appreciating the continuously growing momentum of TOM outside of Delegated Authority because many of these efforts interrelate and build on the success of one another.

Specifically, the Central Service Refresh Program (CSRP) launched a new service and channel that allows an early adopting broker to submit premium data using ACORD-approved messages for London Market processing. Additionally, the Placing Platform Limited (PPL) workstream showed off their first electronic placement of insurance software platform through their 3-day “open house” demonstrations in the Lloyd’s of London Coffee Shop.

Both of these workstreams also have 2016 priority among the totality of 15 TOM initiatives overseen by the LMG. Thanks for reading. Please feel free to contact our consultancy (contact information below) to discuss any of the above advisory updates or ideas, share feedback, and/or inquire about other opportunities.

About Wilson Elser Consulting
Operating as a subsidiary consultancy and a global insurance business solutions provider from Wilson Elser, the internationally distinctive U.S. law firm with nearly 800 lawyers and 30 offices throughout the USA and 1 office in London, Wilson Elser Consulting Continued From Page 15 “TOM” offers unique professional experience, advisory services, management solutions and other non-legal advice and business insights to insurance markets, carriers, and any organization involved in the application of enterprise risk, governance, legal and compliance management; legal operations and legal spend management; claims litigation management; insurance operations and systems; and third-party vendor/expert management by guiding our clients to champion change and generate business value through process, technology, and analytics. For more information, please contact Mr. Jesse R. Viani, Director of Insurance Business Services at +1 (212) 915-5298 or jesse.viani@wilsonelser.com.

About the Author
Jesse R. Viani (an American citizen) is a practicing consultant and the Director of Insurance Business Services at Wilson Elser Consulting, a consultancy established in both New York, NY and London UK which offers advisory services and other insurance business solutions to clients all over the world. Prior to assuming this role, Jesse managed client relationships and oversaw complex international software and service implementations, as Global Account Executive, at one of the world’s largest information, software, and service companies. Previously, Jesse was a valued employee and manager at the Am Law 100 law firm Wilson Elser Moskowitz Edelman & Dicker LLP where he led the firm’s e-Business department, overseeing more than 150 successful client billing software implementations. Before joining Wilson Elser, Jesse was a Director of Operations and Systems for American International Group (AIG), working in the Claims Litigation Management department (now known as the AIG Legal Operations Center), where he managed the carrier’s relationships with various software companies, legal bill review vendors and other consultants. Jesse graduated magna cum laude from the Pennsylvania College of Technology with a bachelor of science degree and was a juris doctor candidate at Seton Hall University School of Law.

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