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Supporting the adoption of Delegated Data Manager


In March we announced our intention to undertake a phased approach to the full adoption of Delegated Data Manager (DDM), working with brokers, coverholders, delegated claims administrators (DCAs) and managing agents who have the capacity and appetite to adopt and drive early benefits.

Since announcing our plans, we have been delighted by the support received from the market and the progress several firms have made towards the full adoption of DDM. The initial plan we outline in our roadmap here today is the result of a market-wide consultation. The roadmap brings to life the ambitions published in Blueprint Two for DDM 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.

Working towards the Conditions of Trade and full market adoption

As outlined in Market Bulletin Y5311, our goal is to achieve full adoption of DDM for all binding authorities and introduce the Conditions of Trade, following the implementation of our phased roadmap. 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 error resolution through improved data quality. This will be achieved through defined data standards, rigorous data validation and business controls on all submissions to DDM.

The initial focus of the Conditions of Trade will be on Premiums and Claims data, that is required for regulatory and tax purposes and to settle between participants. Additional risk data will continue to be required under the Coverholder Reporting Standards, and many firms have expressed a desire for further enhancement of the risk data standards on a market-wide basis. We will work with the market associations to further develop these standards by the end of 2022.

Lloyd’s Conditions of Trade will come into place for all binders incepting from 1 January 2023. This date is dependent on successful integrating Delegated Contract & Oversight Manager (DCOM) and DDM, enhancing Coverholder Reporting Standards and automating the bureau and bordereaux submissions, no less than six months ahead of the introduction of Conditions of Trade.

However, we want to strongly encourage firms to use DDM before this and are discussing with the market associations a potential phased adoption approach using submission targets leading up to full mandate. Further information on this will be shared once discussions have completed. 

The underlying principles of our approach remain aligned to those laid out in Market Bulletin Y5311:

1.    These Conditions of Trade will apply for all binders incepting from the go-live date on 1 January 2023. The Conditions will only become active if all deliverables laid out in appendix 1 are met.

2.    Roles and responsibility for submission, processing and transformation of data into DDM should be agreed at a slip level by firms. However, in most cases, all Premium and Claims bordereau should be processed into DDM by the ‘submission partner’ responsible for submitting to DXC, to ensure accounting and settlement process is linked correctly. 

3.    Risk may be processed by whomever is responsible at slip level.

4.    All Premium, Claims and Risk data must meet the Coverholder Reporting Standards or validations will stop entry into the system. All corrections must be carried out in a timely fashion no later than the submission of the subsequent bordereau.

5.    Scheme Canada business that is currently submitted via Lineage will continue using the same process and is not compulsory to submit to DDM.

What do market firms need to do now?

Each firm in the market has a unique business profile, technology environment and role in the distribution chain. Therefore, the optimal timing and approach for adopting DDM will differ across the market and is best agreed by the participants on each delegated authority arrangement.

All firms participating in delegated authority business should discuss the adoption of DDM with their market partners and agree, at the point of signing or renewing binder contracts, how this will be undertaken.

While many market participants are already using DDM, those who are not should engage with LIMOSS (Lloyd’s services partner) as soon as possible to gain access and be trained on the system, which will be essential for the full adoption of DDM by the end of 2022. Firms who leave this process until late in that period may find that they are not well positioned to transition onto the system and that Lloyd’s and LIMOSS have less capacity to support them in adopting it.

How will Lloyd's/LIMOSS support adoption?

An updated version of our business readiness ‘toolkit’ will be released in July providing more information on the benefits of the planned enhancements to DDM, how to prepare for adoption and the new DDM training offering. We will also run business readiness support sessions with organisation’s nominated ‘DA Change Leads/SMEs.’

In the coming weeks, we will communicate an updated training approach, which is currently being devised with the DDM market user group. In the short term you can access self-service training (e.g. video tutorials, user guides and FAQs) via the LIMOSS website. Virtual instructor-led training is also available on demand. Should firms require any post-training support, LIMOSS’ Service Desk offers further assistance.

Enhanced guidance on the Coverholder Reporting Standards V5.2. for Premium and Claims data will also be released in June, following consultation with a group of managing agents and brokers. This will provide clear and defined guidance on the mandatory requirements for premium and claims bordereaux standards, to support Tax and Regulatory reporting.

We will continue to work in partnership with the market to build out these plans over the coming months, providing regular updates through the DDM user group and market association committees. 

Find out more information about the DDM roadmap here.