The Lloyd’s Delegated Authority programme previously stated its commitment to providing an update to the London market on the Conditions of Trade and adoption approach for DDM at the end of Q1 2022. As originally outlined by Market Bulletin Y5311, under the Conditions of Trade, Lloyd’s will require all DA data to be submitted into Delegated Data Manager (DDM - previously DA SATS) in accordance with Lloyd’s Coverholder Reporting Standards. Previously, it was agreed that the Conditions of Trade will come into effect for all binders incepting from 1 January 2023.
The capture and transmission of consistent and high-quality data is the key focus of the Conditions of Trade. This will significantly reduce the cost of managing data for all market participants, accelerate data flow and the faster movement of money as well as reduce errors through improved data quality. This remains the key deliverable.
Where are we today?
Lloyd’s has been working with the LMA, LIIBA and market organisations to review the adoption framework of Delegated Data Manager and ensure a pragmatic approach is taken. Following feedback from the market, rather than adopt a single effective date of 1 January 2023 for the coming into effect of the conditions of trade, we will work with the market to set out an adoption pathway that aligns to the DA programme milestones and business requirements.
Over the coming weeks, Lloyd’s will enter a period of consultation with the LMA, LIIBA and delegated authority representatives with additional input from market advisory groups to review the Conditions of Trade principles. This will ensure they are fit for purpose to enable the smoothest adoption of the system by market participants, while building upon the phased approach suggested by both the LMA and LIIBA. Once this consultation has ended, Lloyd’s will share an update on the Conditions of Trade and the mandate with the market including the relevant coming into force dates.
What are the next steps?
- Lloyd’s is continuing discussions with LIIBA and the LMA leadership teams around the current Conditions of Trade principles and adoption approach.
- Through our advisory and governance groups (including the DA Market Advisory Group) we will develop a strategic roadmap for the conditions of trade implementation. This will be developed with incorporated feedback from the associations, delegated authority representatives and market advisory groups.
- Following collation of all feedback, an update on the Conditions of Trade and adoption approach will be provided to the market.
While we determine the best way forward, the vision for DDM remains the same: to become the centralised data source to support coverholder reporting, making it simpler and faster to process delegated authority data and enabling more efficient end-to-end processing.