Control Framework
A warm Welcome
to
the august
market Breakfast Group
Control Framework
Breakfast Group agenda
9:00
Arrival, Breakfast & networking
All
9:20
Welcome
Ali Dove
9:25
Update on Central Services Refresh
Sam Nowell
9:50
Update on phase II progress
- Top 3 issues raised
- Brainstorm session
Jaana Rouvari
10:20
Q&A
All
10:30
Close
Ali Dove
Central Services Refresh
Programme (CSRP)
Driving Market Submission
3
CSRP - Where Are We Now?
Carrier Benefits Sessions and Broker Workshops
End July
FSR Review Approach
Revised Draft
FSR
FSR Review
Workshops
Mid August
1:1 Benefits
Discussion
Impact
Assessments
End Sep
Programme
Brief
POC
Broker engagement
Market Submission Analysis
Project Brief
Market Submission
4
CSRP - Introduction
The aim of CSRP is to provide a vision of central services to help resolve key
market concerns
Why was it initiated?
• Market concerns over the age of the technology estate and as a consequence the
supporting business processes
• Lack of an agreed strategy regarding the markets requirements from Central
Services
What is CSRP?
•
CSRP aims to produce an agreed vision, owned by the market, which defines the future of
central services (relating, but not limited to, technology and processes) for the London
market. At it’s core it should enable:
•
•
•
•
Increased levels of service to the Client
The removal of unnecessary Londonisms
The market to create value
Reduced operational risk
5
CSRP - The Future Service Register
The Future Service Register defines the analysis scope and today’s view for future
central services
•
The scope of CSRP analysis phase is defined by the Future Service Register (FSR)
•
This describes today’s view of the future central services, agnostic of provider, though the
lenses of the different stakeholders.
Draft FSR
Client View
Broker View?
Carrier View
6
CSRP – Programme Approach
The FSR is being reviewed and refined through market workshops, subsequent
projects will be benefits driven
Draft FSR
Review & Refine
Market Workshops
Validated FSR
Prioritisation with
benefits and value
proposition
Market
Submission
Prog 2
Prog 3
Prog …
7
Current – Market Submission Landscape
►
Market specific processes adding complexity and cost
►
Processing overhead absorbed by participant’s operations
►
Disparate pseudo-duplicate records across multiple entities
8
CSRP - Driving Market Submission
Development of the Future Services Register has provided very valuable insights…
Customer
Service
Remove
Londonisms
Value
Operational
Risk
Client Service
•
Shorter end to end cycle times
•
The ability for clients to interact directly when appropriate (e.g.. direct settlement or status
information)
•
How quickly decisions / money get to the client
Removal of Londonisms
•
Carriers should look at ways to reduce the burden placed upon brokers through the
possibility of greater/alternative use of central services
Benefits Focus
•
Consensus exists that central services can be improved but changes must be business benefits led
9
CSRP - Driving Market Submission
……particularly around the “input” side…….
Customer
Service
Remove
Londonisms
Value
Risk
Availability of Information
•
Timely access to richer information
•
The way that information is presented should be easier to use
•
Differentiating between notification and information held for subsequent processing
Classification of Information
•
Centrally record information classified in a way that maximises efficient downstream
utilisation
Harmonisation
•
To have common processing and integration between markets and originator types
•
Help organisations better integrate their systems with central services
•
Make central services available from any location in any time zone
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CSRP - Driving Market Submission
…..and the operation of central processes
Customer
Service
Remove
Londonisms
Value
Risk
•
Great benefit in receiving data ‘right first time’
•
Achieving standardisation by moving burdens from brokers to Central Services
•
Carriers can directly add Information to the central record
•
Higher quality information allows for better underwriting operations
•
Maximise re-use and availability of high quality information to inform and anticipate actions
•
The ability to make use of the large volume of centrally held information
•
Great benefit in the ability to reconcile information without manual intervention
•
More granular information would be valuable to carriers, especially where they do not lead
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Future - Market Submission Landscape
►
Market Submission aims to make Central Services ‘easier to do business with’,
principally for brokers, but also for carriers too.
►
The scope for Market Submission is expected to include moving London market specific
processes, or “Londonsims”, to the centre.
►
Market Submission is expected to enable interfaces to become more global; improve
referencing and enable better, richer risk data.
12
Market Submission – 6 Core Elements
13
Market Submission and Genesis
►
Market Submission complements and is complemented by Genesis
►
The LMA team have agreed that the CSR team have sign-off of key elements relating to
data so as to ensure alignment in the use of standards; recognising that the DCS is
logically at the start of the CCR
►
Market Submission can support the DCS irrespective of whether central services passes
the data onto the recipients, or centrally stores the data for reporting purposes only
14
Market Submission and Broker Needs
► LIIBA requirements of the Lloyd’s and London Market broadly split across:
► Placing
► Binders & Coverholders
► Accounting & Claims
► 30 high level statements of need; of which
► CSR can provide, based upon initial analysis and assessment a solution
to 20 and supports improvements for another 6
► Market
Submission can provide, based upon initial analysis and
assessment a solution to 17 (of the 20) and supports improvements
for another 5 (of the 6)
► Market Submission has the potential to deliver material improvements to the
broking community; particularly in areas relating to “Londonisms”
► Work on-going with LIIBA to better understand the detail and areas of benefit.
15
Market Submission and the Utility Platform
► Can treat the Utility Platform as any other Originator of data, assuming the
Central Services have a role to play in the related business processes
► Supports the early capture of common data to eliminate re-keying and
associated re-work
► Can help to deliver on the provision of an electronically agreed record of the
contract via the CCR and Cross Referencing; in conjunction with the utility
platform’s own centrally held placing data
► Provision of centralised business rules to ensure market standards are met
► Supports the desire to see the acceptance and implementation of a single
common data standard (ACORD), coupled with a minimum structured data set
16
Market Submission and LMG ALIGNMENT
► CSRP shares with Future Processes the fundamental principle that::
“Any insurer/service provider combination (including a
bureau) will interact with brokers in the same way as
other insurers i.e. not involving unique processes, data
or query types.”
17
Market Submission – 6 Core Elements
►
Lloyd’s & Londonisms – Removes or dilutes restrictive Lloyd’s and Londonisms - intended
to make market access easier.
Centralised
Business
Rules
►
Insulation - Mask central service complexity through the introduction of standard interfaces
e.g. Cross Referencing & CCR.
Master Data
Management
►
Multiple
Types of
Originator
Common Core
Record
Cross
Referencing
Enablement – Market Submission enables subsequent developments. For example carriers
settling claims automatically because standard interfaces are implemented
ACORD
Messaging
18
For MORE INFORMATION
► For
more information on CSRP; contact your
association:
► IUA - John Hobbs. Telephone: 020 7617 4445, Email:
john.hobbs@iua.co.uk
► LIIBA – James Livett. Telephone: 020 7280 0152,
Email: james.livett@liiba.co.uk
► LMA – Rob Gillies. Telephone: 020 7327 8377, Email:
robert.gillies@lmalloyds.com
19
Questions?
20
Control Framework
Progress on Phase 2
• Initial meeting to introduce CF2 under way
• 55 managing agents in scope (13 new to Phase II)
• 42 face to face meetings completed
• Brokers on-board
• 80 broker meetings on CF2 to date
• Broker event on 17th September
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© Lloyd’s
Control Framework
Progress on Phase 2
Managing agents commenced analysis phase - key activities for year
end are:
1.
Project resources in place
2.
Coverholder risk rating exercise
3.
Risk rating reflected in audit schedule
4.
Confirm project delivery timeline to Lloyd’s
The risk rating exercise
1.
Review and validate list of coverholders provided by Lloyd’s
2.
Risk rate each coverholder
3.
Provide list back to Lloyd’s
4.
Lloyd’s to coordinate approach with managing agents where there are
overlapping coverholder relationships with high/ medium risk ratings.
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© Lloyd’s
Control Framework
Top 3 issues raised
1. Responsibilities of lead vs. follow
2. Delivery timeline
3. Validation of coverholders
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© Lloyd’s
Control Framework
Brainstorm in your groups
15 minutes to brainstorm!
Question 1
What should the responsibilities of lead vs. follow be in implementing the
Control Framework?
Question 2
What controls does the following market have over delegated business?
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© Lloyd’s
Control Framework
Q&A
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© Lloyd’s
Control Framework
Close
Further information on CSRP – samantha.nowell@lloyds.com
Further information on Control Framework – jaana.rouvari@lloyds.com
Phase II Broker conference – Tuesday 17th September 2013
Next Breakfast Meeting – Tuesday 24th September 2013
Control Framework Phase I end of project celebration – Thursday 26th
September
www.lloyds.com/controlframework
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© Lloyd’s