Data Standards and Process, Roles & Responsibilities

Capturing data and embedding data standards

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 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 (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.

What is the CDR?

The Core Data Record (or CDR) provides the critical transactional data which needs to be collected by the point of bind to drive downstream processes: premium validation and settlement, claims matching at first notification of loss, tax validation and reporting and regulatory validation and core reporting.

The CDR has been defined in the context of the wider London insurance marketplace working across both the Lloyd’s and Company markets and is governed by the Data Council of the London Market Group.

For more information about the CDR please see here For more information about how the CDR will be used and what market firms need to do please see here

What is the Market Reform Contract (MRC) v3?

The MRC v3 is a revised version of the MRC which will enable accurate, ACORD standardised data, including the CDR, to flow through the entire insurance transaction lifecycle with minimal human intervention.

The MRC v3 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.

If you have any questions on the MRC, please contact us  or visit the LMG website.

LMG website imrc@lloyds.com

Access the MRC v3 and CDR v3.2 now!

The LMG Data Council has published the Core Data Record (CDR v3.2) for open market business and the latest version of the Market Reform Contract (MRC v3).

The CDR v3.2 has been updated to align with ACORD standards and the MRC v3. Many of the changes that have been made are structural rather than additional requirements, and are critical for implementation of a digital market.

View CDR v3.2 in Airtable View MRC v3

Interactive versions of the Core Data Record (CDR) v3.2 and anonymised examples of the Market Reform Contract (MRC) v3 are now available on the LIMOSS Market Business Glossary (MBG). The LIMOSS MBG is a centralised source of business definitions, standards and reference data for use by the London Market. 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.

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.