Open market:
Transforming placement to unlock digital benefits

The current process for capturing data needed for the open market (any business which is not written under a facility such as a binding authority, and is itself not the facility or contract of delegation) placement journey is slow, cumbersome and error-prone. The Computable Contracts journey will help enable a shift to a right first-time approach and adherence to upfront data quality controls, rapidly expediting processing times while providing an opportunity to reduce placement and indirect costs.

As part of Blueprint Two, the key solutions for digital adoption in the open market are as follows:

Core Data Record (CDR).
Market Reform Contract v3 (MRC v3).
Digital Gateway.

The Core Data Record (CDR) and the Market Reform Contract v3 (MRC v3) will play a key role in embedding data standards and strengthening data quality. Coupled with the introduction of new core digital solutions, this will transform how accounting and settlement – for both premium and claims – will be delivered in the market.

Minimising data capture burden through the CDR

The CDR simplifies tax and regulatory data, therefore minimising the data capture burden on market participants. This helps to enable both a ‘data-first’ and ‘document-first’ placement journey.
The CDR v3.2 was published on 29 March 2023. It sets out the data requirements for direct insurance and facultative reinsurance for all classes of business and territories relevant for the Company and Lloyd’s markets.
This version has been updated to reflect the ongoing work with ACORD and the MRC v3. Many of the changes that have been made are structural rather than additional requirements, and are critical for the implementation of a digital market.
Interactive versions with enhanced functionality of both the MRC v3 and CDR v3.2 will be published in the LIMOSS Market Business Glossary (MBG) in due course. The LIMOSS MBG is a centralised source of business definitions, standards and reference data for use by the London Market. To access the CDR via the LIMOSS MBG, you will need to have an ACORD license. You can find out more information on how to access the LIMOSS MBG here.
Please note that the CDR will, by the nature of its contents, continue to evolve (for example, to accommodate changes in tax and regulatory requirements). Annual processes will be put in place to govern these changes.

Access the approved CDR and learn more about the CDR

Embedding data standards and strengthening data quality through the MRC v3

The MRC v3 will enable accurate, ACORD standardised data, including the CDR, to flow through the entire insurance transaction lifecycle with minimal human intervention.
The MRC v3 was published by the London Market Group (LMG) on 29 March. It reflects the feedback gathered during the LMG Data Council’s market consultation, supported by Lloyd’s, which ran from June – September 2022. Thank you to everyone involved for their time, effort and expertise.
Interactive versions with enhanced functionality of both the MRC v3 and CDR v3.2 will be published in the LIMOSS Market Business Glossary (MBG) in due course. The LIMOSS MBG is a centralised source of business definitions, standards and reference data for use by the London Market. To access the CDR via the LIMOSS MBG, you will need to have an ACORD license. You can find out more information on how to access the LIMOSS MBG here.

Please contact us with any questions on the MRC, or visit the LMG website.

imrc@lloyds.com

LMG website

Validating data via the Digital Gateway

The data captured in the placement process will flow through the Digital Gateway, the link between placement and premium/claims processing.
The Digital Gateway determines the CDR data provided is of sufficient quality for digital processing in the placement journey.
Basic syntax validation will be performed, ensuring alignment to the CDR standard for both company market and Lloyd’s business.
For Lloyd’s business, it will check taxes and regulatory alignment to offer the broker and insurer real time validation results.
New services will be API enabled and operate in real time, so transactions submitted will be processed and confirmed to all participants in seconds or minutes.

Digitalising submissions and notifications

The ACORD accounting standard, Electronic Back Office Transactions (EBOT), is being adopted to allow full digital submission of accounts and two-way digital notifications and queries. The service will align the market to this widely used global standard, without London variations.
EBOT messages will be sent via API, so brokers and insurers will need to be ‘API ready’ to make the full transition to digital services.
Participants choosing not to make the full digital transition at market-wide cutover in Q2 2024 will be able to use transition services to continue submitting premium and claims broadly as they do today, and move to full digital processing at their own pace. There are some mandatory changes required to access these services, which will be published in advance of the required change.

Benefits of adopting the core digital solution

Adopting the core digital solution will:

Improve settlement time and reduces errors and queries.
Reduce central services costs by at least 40% if fully adopted.
Deliver a single market-wide data standard.
Support data completeness, increased accuracy and consistent quality.
Enable automated validations, streamlining the current manually orchestrated data validation process.
Provide a fully automated, real time digital accounting service, supporting full integration with broker and insurer systems.
Improve operational resilience, removing standing legacy issues and improves future change agility.

Quick recap on key actions for 2023

The Future at Lloyd’s programme will focus on:

Engaging through advisory groups (such as the Data Council’s Technical Working group), forums and market associations to support build and testing of the solutions.
Implementing changes and solutions required to enable digital adoption at market-wide cutover, or implement changes required for transition at market-wide cutover
Publishing the proposed changes to create the MRC v3.