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The DA vision in Blueprint Two: better, faster, cheaper remains our goal

Progress to date 

Changes in the market landscape and a wider focus on Delegated Authority (DA) performance have highlighted the need for the development of a strategy for delegated authority data, with a market-wide emphasis on reliable, timely, trusted data as key to unlocking a more efficient market.

Key themes 

In Q4 2022, we spoke to over 50% of the market, engaging with brokers, coverholders and managing agents, to understand the challenges they face today.

We’re very grateful to everyone who put in the time and the effort to participate in this work, which was vital in informing our direction of travel. Key themes and trends identified through the engagement include:

Progress in open market data standards

The Data Council has made significant progress over the last year with the agreement of the MRC v3 together with the Core Data Record (CDR) v3.2.

As the market moves to a standard for open market, this provides an opportunity to build on this foundation for delegated business, to achieve a single standard across distribution models where possible.

Innovation agenda and scale changes within Managing Agents (MGAs)

MGAs are increasingly leveraging a digital first approach to provide a better experience, reduce costs and deepen relationships with end customers.

A significant portion of the market is being slowed down by current ‘Londonisms’ and could be fast adopters of new data transmission methods.

Market-wide performance focus

Driving increased performance is a consistent theme across the full value chain and a priority for Lloyd’s.

A greater focus on performance this year requires timely access to reliable data.

The themes listed above, as well as the lack of an ingestion engine within DDM, have led to a requirement for a refreshed data strategy which will enable our DA ecosystem to operate more efficiently.

Research findings

DA market engagement to create this strategy

Through a recent survey and engagement with the market, three problems were highlighted, and it was agreed that the priority should be to focus on data transmission mechanisms, performance management and data standards for reporting. With the aim that this would help resolve issues such as poor data quality and overly complex processes adding cost and burden to all parties within the distribution chain.

8 group market feedback sessions, 28 one to one market sessions resulted in wide agreement and buy-in from the market on the vision to standardise data across core processes and align to the new open market solutions where possible. A bar chart shows the Representation across DA Market Participants. Survey responses from market participants accounted for over 50% of the total DA GWP across MA’s, brokers and coverholders: Managing Agents - 81% GA GWP, Brokers - 51% GA GWP, Coverholders - 50% GA GWP. Graphic displaying Engagement output with percentage of market consensus (results based on survey responses across MA’s, brokers & coverholders who agree or strongly agree with the statements). 1. Problem statements: Costly & burdensome data transmission methods - 83%, Ineffective DA performance management - 82% and Complex and incomplete tax & reg reporting - 65%. 2. Centralisation of data standards across core processes: Risk Placement e.g. Binder Registration - 85%, Accounting & Settlement - 90%, Regulator & Tax Authority Reporting - 87%. 3. Preferred data transmission method - Appetite to move towards a more digital journey within the next 3-5 years. Short term - 37%, long term - 67%

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Insights on adoption

The market are calling for change, with overwhelming identification of appetite to move towards a more digital journey within the next 3-5 years.

Bar chart for MA Transmission method by 2023. API Driven is just over 90%, BDX driven is just under 10%. Anecdotal evidence highlights immediate API readiness for approx. 15-20% GWP for Coverholders/MGA’s. An increasing proportion of DCA’s are also moving towards an API first approach

Key considerations

There are several key considerations for the market to adopt a data-first approach for doing business:

Phased approach – Implementation will need to be phased, with transition services in place to adequately support adoption/pace of individual market participants.

  • Dual-Run / Support of multiple transmission methods will likely incur additional cost / complexity for Lloyd’s and the market throughout the transition phase.

Market change required for adoption – Market participants will require technical and business process transformation to enable adoption of API standards/transmission methods.

  • This will incur a shorter-term cost of change to the market
  • There is consideration for those who have adopted CRS v5.2 to align to a new data standard

Iterative development and testing with market – We will need to iteratively build up a DA Data Standard, starting with binder placement data captured via a Computable BAA, with regular market testing to ensure standards are fit for purpose and support the end-to-end DA journey.

Strategic response


Guiding principles set

Following engagement with the market, the Lloyd’s Market Association and the London & International Insurance Brokers’ Association, a set of guiding principles has been established which serve as the foundation of the DA data strategy.  

Use one standard market wide (where possible)

  • Many firms in the market write both open market and DA business, there is a desire to move away from having separate data standards, processes and technology to enable a reduction in cost and complexity.
  • The extensive work to create an open market set of messaging standards for Risk (CDR), Premium & Accounting (EBOT), and Claims (ECOT) provides an opportunity to extend these to work for delegated forms of business too.
Action: We’re going to work with the data council and DAC through Q2 & Q3 2023 to look into the detail of how these open market data standards could serve DA and the potential implications that would have on these and the existing DA standards.

Take a data first approach powered by APIs

  • Primary focus needs to be on developing services (APIs) that support the submission of data as data. We need to provide a path away from complicated spreadsheet documents of varying quality and allow data to be transmitted across the ecosystem.
  • Data rationalisation is key, asking for data once and re-using it wherever possible by connecting systems together rather than re-collecting the same information multiple times.
Action: We’re going to be working with the Joint Venture to replan ‘Sequence 4’, the part of the Joint Solution Plan focused around DA business to enable this principle – Updated plan due Q3 23.

Enable optionality within technology and process


  • Many market participants want to drive innovation through selecting technology vendors that best connect with their wider technology architecture. Enforcing adoption of a market wide bordereaux management solutions meets resistance
  • Firms also want choice as to how their distribution chain works; 7% of coverholders operate via direct deal, while many brokers play a key role as data processers. We need to unlock both data flows
Action: Remove the mandate on DDM usage in the Lloyd’s market, and allow firms to choose the technology platforms and solutions that best suit their needs. (Note: the Lloyds Europe (LIC) mandate for DDM will remain)

Alignment with the Data Council

Over the past few months, the Data Council has helped drive digitalisation of the London Market through a number of milestones in Open Market. These include the upcoming publication of both the Market Reform Contract v3 (MRC v3) and Core Data Record 3.2 (CDR v3.2), as well as seeking market feedback through the recently concluded Process, Roles and Responsibilities (PRR) consultation. 

We continue to work closely with the Data Council and Joint Venture to explore how the guiding principles can be leveraged, in line with the Data Council standards, and how the Blueprint Two open market API solutions can be broadened for delegated authorities. The Data Council will use the five pillars that guided Open Market to direct its approach:


  1. Data standards in conjunction with ACORD
  2. Risk and claims Core Data Records
  3. Computable contracts (aligning with the LMA’s DARE Vision for Computable BAAs)
  4. Data assembly process, including roles and responsibilities
  5. API standards

DDM update

Supporting optionality on technology choices, we are confirming the removal of the mandated use of the Delegated Data Manager (DDM). While we support DDM as a solution for bordereaux management, firms can select whichever technology they wish in the bordereaux management space.

For any business written with Lloyds Europe (LIC), the requirement for DDM use will remain, with Lloyd’s Europe choosing to continue to utilise DDM as its chosen bordereaux solution at this time. 

While this has been widely communicated over the past few months, we wanted to formalise this decision as part of this update.

About DDM

Next Steps

We’re working continuously to drive the DA data strategy through various technical working groups, and are looking forward to providing you with further updates and greater clarity on the DA data strategy approach and plan of delivery in June. 

For any questions, please reach out:

pressoffice@lloyds.com