SDC will be key for TOM Success
For the market to fully realise the opportunities contained within the London Market Target Operating Model (LMTOM), integration, and in particular data integration, is key. Data sits at the very heart of the insurance industry, and rightfully so. The ability to efficiently capture and use data from multiple sources will be critical to driving down costs and ultimately improving margins.
But in a subscription market like London, capturing data in an efficient manner comes with its own unique challenges. At present, multiple actors along the value chain, from customer to carrier, are manually rekeying the same data into their systems – a task often outsourced to a third party.
In recognising this, the market’s push to launch a Structured Data Capture (SDC) service intended to allow carriers the opportunity to assess the value of integrating structured data directly into their own back office is key. Aligning it with the class of business roll-out of the Placing Platform Ltd (PPL) will only reinforce the opportunity SDC represents. While not a ‘silver bullet’, SDC is an important first step on the path to data integration and one-touch data capture in the London market.
Using ACORD standards and rules agreed by the market, SDC will automatically extract structured data from the Market Reform Contract (the slip) and feed it through to managing agents. Not only will SDC help facilitate more automated data processing, but it will also provide more timely and consistent data, which should lead to more informed decision making and better monitoring of business performance.
This project is of the highest priority for the LMA and sits at the heart of our community’s support for TOM and PPL project. We are working to have the SDC service up and running by the end of the second quarter, and integrated with PPL during the summer.
The SDC service is a proportional and pragmatic solution to a complex issue, representing, in my view, one of the best examples of a joined-up approach to market modernisation. SDC has the potential to connect the various TOM change activities and open up new opportunities for managing agents and their back offices.
Without data integration, it is hard to see how there can be true modernisation of the London market.