The LMG’s report, London Matters, identified a number of key challenges to the position of the London Market, including:
- Unique London Market requirements, causing barriers to entry
- High expense ratios, creating a price disadvantage
- Lack of presence in emerging markets
- Declining market share in reinsurance
The report posed a number of key questions for the London Market including:
- How can London improve the ‘ease of doing business’?
- To what extent can shared services and infrastructure activity lower costs and improve services?
Failure to answer these could threaten the London Market’s position as the undisputed global centre of excellence for commercial insurance and reinsurance.
Two principles are at the heart of TOM
First is one touch data capture, which enables us to enter data once on behalf of all carriers and brokers, rather than each doing it themselves over and over again. It reduces the risk of error and costly rework caused by entering data multiple times in multiple formats – as happens today. Second, is enhanced global shared central services. This will centralise many of the Market’s non-competitive tasks and make them more efficient and consistent, while avoiding duplication.
The TOM builds on the strengths of the London Market, with the aim of continuing to support face-to-face negotiation, facilitated by electronic data capture for placing, signing, closing, claims and renewals.
Work on the TOM programme has already begun
The governance framework is in place and the technology at the heart of the TOM already exists. To successfully deliver, the programme requires the full support of the London Market and to do this we have involved the market in every step of the journey.
The scope of work for 2016 will be focused around two parallel sets of activities:
- Delivery of the prioritised initiatives - Placing Platform Limited (PPL), Central Service Refresh Programme (CSRP), Delegated Authority and Data (Structured Data Capture and Data Integration).
- Development of the TOM Blueprint - Analysis of the output from market consultation to define the business case as well as the scope and timescales of the programme for 2017 and beyond.
Prioritised initiatives in 2016
15 initiatives were initially identified to deliver the enhanced central services and realise the benefits of straight through processing.
In February 2016 the TOM steering board decided to focus the TOM programme on a smaller number of initiatives during 2016. The 4 prioritised initiatives are as follows:
- Placing Platform Limited (PPL)
- Central Services Refresh Programme (CSRP)
- Delegated Authority
- Data (SDC and Data Integration)
Some other in-flight infrastructure initiatives will continue: Document repository re-platforming (IMR) and further improvements to electronic claims (ECF).
The other initiatives (Local Shared Service Centres, Complaints, Claims and Settlements) are being paused, with the aim of reinvigorating later in the year in readiness for work in 2017. Outputs from all the initiatives will be used to build the Blueprint plan.
The purpose of the Blueprint work is to provide greater definition of the scope and shape of the TOM programme. The workstream will incorporate feedback from the market which was provided during the consultation process. It will also bring clarity on how future technology and processes will work together to deliver the overall model for the London Market.
Importantly, the Blueprint will:
- Provide the required processes, technology and data to support the TOM programme
- Give a more definitive view of the business case for each of the initiatives, including the delivery and run costs
- Make the business benefits of each initiative much clearer
- Set out a timetable/roadmap for 2017 and beyond, detailing the steps/deadlines required to take us to the new operating model
The Blueprint was released in July 2016.