The Exchange is a messaging service,which enables brokers, underwriters and IT suppliers to have a single connection point from which they can send and receive information securely between multiple parties. 

It is not intended to impose a way of working, but supports brokers and managing agents by providing a simple service to enable a standardised way in which to exchange electronic information.

The Exchange offers:

  • A simple way of connecting to all your trading partners 
  • A single connection point with a low overhead for organisations to support and maintain 
  • Simplified interconnectivity between IT service providers 
  • A way of exchanging structured information which can be fed directly into back office systems 
  • Message validation according to a single ACORD standard enabling consistent implementation of the standard across the Market 
  • The possibility of having a managed process of upgrades for the market 
  • A highly secure environment 
  • A highly reliable network 
  • Choice.
  • What is the Exchange used for?

    The Exchange is currently used to support the processing of electronic endorsements as part of the ongoing LMG initiative.  This has been extended for use across all business classes as of March 5 2012.  Further details are available at www.londonmarketgroup.co.uk.

    In addition, a number of business partnerships are actively processing original placements via the Exchange.

    The second main area of the insurance transaction currently supported is accounting and processing in the non bureau company market.  The first such partnerships between brokers and insurers went live in October 2011.  There is a plan for further roll out during 2012.  Again, further details are available at www.londonmarketgroup.co.uk.

  • How it Works

    A messaging hub

    At the heart of the Exchange is an ACORD certified messaging hub. It handles authentication, authorisation, routing, delivery and response management.

    A market directory

    Messages are routed to the intended destination using the relationships held in the hub's market directory. A trading partner relationship must be established before messages can be exchanged.  

  • Why not just use email?

    Email is a useful method of transferring information and documents around the Market, but there are a range of issues surrounding its use including:

    • Unstructured data is not underpinned by a standard, this can lead to issues with data integrity and interpretation of that data 
    • There is no validation, thus making conformance with any agreed ‘standard’ difficult 
    • Security concerns: email has potential problems around tampering, hacking, spoofing or spam attacks and around accidental loss of data 
    • Difficult to track and record responses and concern around how to maintain broking files/audit trail 
    • Data sets are becoming larger; sending them by email may cause problems due to mailbox capacities 
    • Lack of associated workflow