Interactive Guide Second Edition: Progress update

As at 29 September for Q3 2022

Progress against the Blueprint Two roadmap

The second edition of our Interactive Guide charts the progress towards delivering the digital solutions outlined in Blueprint Two, and includes a roadmap running from Q1 2022 to Q2 2024 detailing dates and key actions organisations need to take to effectively implement and benefit from the changes.

To encourage transparency and ensure market participants are fully informed, we share an update on progress made against the major market milestones each quarter.

An overview of progress made in Q3 2022:

We have concluded the consultation on the intelligent Market Reform Contract (iMRC) and have received 66 feedback forms from (re)insurers, brokers, market associations, service providers and system vendors. Together with the London Market Group, we are now reviewing all feedback received.
Although there are no milestones for claims this quarter, we have made great progress launching Faster Claims Payment for delegated authority business, a transformative payment solution which allows Delegated Claims Administrators (DCAs) to make payments on request and pay claims in minutes. This is by drawing on managing agent funds directly, removing the need for loss funds and the associated cash calls for funding deficits. We have also supported LIMOSS and Vitesse in signing a contract for FCP to become a central market service. Managing agents can now sign their individual agreements with LIMOSS to begin transferring binding authority contracts to the platform and reaping the benefits for themselves and their customers.
For the third quarter, we have delivered one milestone, two have been postponed and one is rescinded. Transforming the Lloyd’s and London marketplace is a complex undertaking, and the decision to delay and rescind these milestones has been made with consideration of the impact on our partner organisations. We are confident we have taken the right approach as we work together to build a better, faster, cheaper marketplace.
Good progress has been made since we launched the Interactive Guide nine months ago, and we are in a strong position to land the other 2022 milestones by the end of the year.

Market milestones: Q3 2022 progress update

Below is a more detailed update on the major milestones to deliver upon the data first journey for open market placement, delegated authority placement, and claims.

Open market placement

The open market milestones for Q3 2022 are postponed.

Digital Gateway API specification

To ensure the API specification aligns to ACORD standards, the delivery of this milestone has been postponed. Work continues with an ACORD-managed market working group to produce the post placement implementation guidance, which will be worked into the API specifications once the guidance has been analysed and agreed.

Proportional Treaty system build

Following a review of the Proportional Treaty system build, the delivery of this milestone has been postponed. This is so a single market acceptance test can be performed on all work under the joint venture contract build in Q4 2023. Thomas Sebastian, London Market Joint Venture CEO issued a statement on the replan in July, which can be viewed on the new dedicated Blueprint Two hub.

Visit Blueprint Two hub

Delegated authority placement

Of the two market milestones for Q3 2022, one was achieved and one rescinded.

Continuous contracts

We are pleased to announce that binding authority contracts will be capable of being granted as continuous binders. This is entirely optional for in-scope binders. Initially, the ability to issue continuous binders will be available for binding authority contracts with a single subscribing syndicate (‘singleton’ binders) and also for service company agreements. Additional operational requirements for subscription binding authorities and the detailed scope and guidance have been published to aid managing agents. Read more information on continuous contracts here.

Next steps for market participants

Until further notice, any managing agent who wishes to enter into a continuous contract should inform Lloyd’s so we can support and monitor contract language as well as market adoption during the initial period.

DDM submission solution

Following consultation with our market advisory group and other market forums, we have decided not to progress with development of the DDM submission solution at this time. We have shifted our strategy to focus on the development of a delegated authority data strategy that will help drive our future data and technology roadmap.

Claims

September saw the signing of the central market contract between LIMOSS and the Vitesse payment platform to run the Faster Claims Payment (FCP) solution. This is a critical achievement and means that managing agents can now sign their individual agreements with LIMOSS and begin transferring binding authority contracts to the platform. Managing agents who onboard in 2022 can start using the service immediately and will benefit from a significant reduction in costs for H1 2023.

See the full announcement

All managing agents have been approached about FCP, and initial introduction meetings and process training sessions with managing agents, brokers and DCAs are well underway.

Market Readiness in Q3 2022

Ongoing engagement is critical to build and deliver appropriate, relevant and adoptable solutions that provide value and benefit to your organisation, the market and ultimately our customers.

We have worked with market associations to develop an engagement structure that delivers participation and insight at a senior and practitioner level across the market.

Dedicated engagement partners

Given the number of organisations involved, digitalising our market can only be achieved by working together. To help support the market’s transition to new services , in July we established a single market readiness team comprising of the London Market Joint Venture, LIMOSS and Lloyd’s. We have segmented the market and third parties into 10 groups, and assigned each a dedicated engagement partner. Since then, we have seen great two-way communication between organisations and their engagement partners.

New Blueprint Two hub

This month, we have launched a dedicated Blueprint Two hub, in collaboration with the London Market Joint Venture. This is a central place for both the Lloyd’s and London market to view information to help them prepare for the digital solutions. On this site you can find customer journeys, a key benefits framework and a playbook for managing agents (a broker version is currently in development). We will be adding more assets as and when they come available.

Visit Blueprint Two hub