Collaboration – The Hidden Strength
Posted by Carl Phillips | Market Development on Thursday 06 October 2011, 11:01AM Share
Carl examines how collaboration has driven success in market modernisation.
Many articles refer to the clustering effect as a key success factor particularly when applied to the London Market. Most commentators will refer to the number and proximity of brokers, underwriters and lawyers but not to the myriad of other service providers that contribute to the DNA of the London Market.
This clustering effect has driven success in recent modernisation initiatives. For example, the electronic Endorsements Pilot, where collaboration between underwriters, brokers, trade associations, gateway suppliers, message management tool suppliers, hub providers, back office system providers and front office system providers has been essential to success through defining standards and common process.
All of these firms being clustered in the square mile is clearly a hidden strength of the market.
The next phase of collaboration could be around back-office message integration for underwriters through common application providers. The 50 or so managing agents probably use less than ten common back-office providers.
The opportunity for underwriters to collaborate on standards, common process, EDI replacement by XML messaging etc. through their common supplier is high, enabling costs to be shared, delivery times to be reduced through a single core software version and earlier delivery of benefits.
All in all this makes the benefits case much more compelling. We have already started to see collaboration in this area but, in my view, it is the one to watch as a significant driver of modernisation.
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