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1) What is TOM?

TOM (Target Operating Model) is a core component of Lloyd’s Market Modernisation proposal, set out by the London Market Group (LMG), to improve the ease of doing business in the London Market, locally and globally. TOM builds on the strengths of the London Market, with the objective that face-to-face negotiation is supported and facilitated by electronic data capture for placing; signing; closing; claims and renewals. One of the TOM’s ambitions is to create efficiencies and to remove processes that don’t provide competitive advantage.

2) Why was TOM launched?

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’, in particular for brokers?

• To what extent can shared services and infrastructure activity lower costs and improve services?

The London Market needs to move away from an inefficient model which drives frictional costs, to one that creates an efficient and accessible market of choice. To manage the transition to this new model, the multi-year TOM programme was created in 2015.

Failure to answer these could threaten the London Market’s position as the undisputed global centre of excellence for commercial insurance and reinsurance.

3) What are the benefits of TOM for my team and the wider Market?

TOM supports a “One Touch, Unified, and Intelligent” approach for London Market business. There are benefits for many different groups in the Market, such as:


• Increased confidence

• Faster and simplified claims process

• Direct access to Central Services (subject to Broker approval)

• Contract certainty


• Reduction of existing frictional costs

• Removal of all negative London Market specific processes

• Ability to place business electronically

• Ability to choose the preferred method of placement

• Reduction in risk of errors and omissions


• Clear, consistent data requirements

• One market audit and compliance process

• Allows the balance between premiums and claims

• Reduced turnaround times and complexity

• Basic risks checks made as soon as possible


• Access to integrated shared services

• Ability to send and receive data using global standards

• Central MI and analytics

• Reduced turnaround times and complexity

4) How will TOM achieve its goals?

TOM has been designed around the following principles:

• One touch data capture. This reduces risks of error and costly rework inherent in the same data being entered multiple times by multiple parties (as is the case today). Data will be entered once or translated early in the process into a common global standard, to allow re-use by all parties. This will increase ‘right-first-time’ processing and remove barriers to accessing the London Market from overseas offices.

• Enhanced shared central services. There are many non-competitive tasks that would be more efficient and consistent if delivered once centrally, rather than being repeated by each broker or carrier participating on the same risk. Developing shared central services to provide these common non-competitive activities allows brokers and carriers to concentrate on the areas that differentiate their business.

5) What are the specific initiatives of TOM?

15 TOM initiatives were initially identified to deliver the enhanced central services and realise the benefits of straight-through processing. Following an initial TOM Steering Board meeting in February 2016, 4 key initiatives have been prioritised for delivery during 2016, in order to enable a more focused and successful delivery.

These are:

1. Placing Platform Limited (PPL)

2. Central Services Refresh Platform

3. Delegated Authority

4. Data (Structured Data Capture and Data Integration)

More information on a particular initiative can be found by visiting the relevant FAQs section.

6) If delivery of an early TOM initiative fails, will it have consequences, terminal or otherwise, for the entire TOM process?

It would be a setback, but there are standalone elements, not dependent on the others. It would have consequences as the cost benefit case would alter and the extent of this would depend on the initiative itself. It could also damage market confidence. In terms of pure delivery the interdependency is limited except in initiatives that support the overall model such as data integration or reporting. It is highly unlikely these will ‘fail’ but over the course of the TOM they will change shape and priorities.

7) What does TOM's timeline look like?

Work on TOM began in 2015. The governance framework is in place and the technology at the heart of TOM already exists within the London Market (in disparate parts). In order to deliver TOM successfully within the next five years, TOM requires the full support of the London Market.


8) What will TOM deliver in 2016?


1. New Central Services Submission Channel: Delivery of a new channel for post-bind submissions to Central Services based on global messaging standards.

2. Online Submission Portal: Introduction of an online submission portal for Brokers and service companies that do not wish to move to automated, semi, or fully integrated ACCORD messaging capability.


1. PPL first release: Roll out of the first business class (terrorism).

2. Roadmap: Development of a clear implementation roadmap for PPL including change and communications planning.

Delegated Authority

1. Coverholder Audit: Centralising and automating coordination and performance of delegated authority audits service.

2. Compliance: Introducing a central service to carry out coverholder compliance checks and improving existing infrastructure where necessary.

3. Data Standards: Working with the Data Integration workstream to agree market standards for premium and claims information and commencing work on standardisation of risk information by class of business.

4. Data Services: Commencing design of a central service to receive information, ensure accuracy and quality, transform and distribute to the market.


1. Data Management: Ensure improvements in availability and quality of shared data, which will be secured in a controlled way.

2. Common Message Standards: Foster their use in the market to improve ease of data exchange and re-use.

3. Shared Reference Data: Provide certainty to avoid duplications, errors, and inconsistencies in data use and find costs savings.

4. Improve Data Provision: Identify and implement opportunities to improve this for central Tax and Regulatory reporting and for data services, were beneficial to the market.

9) Who is involved in TOM and who will govern the programme?

The TOM Steering Board will play a critical role in programme governance, which is made up of senior executives from across the market, meaning that the TOM programme is driven and owned by the market.


10) How is the rest of the Market involved with TOM?

We had two consultation activities:

1) Market consultation with a focus on following objectives:

• To gather ideas from members across the London Market to ascertain whether the TOM addresses all necessary issues with the current operating model and confirm should be “raising the bar” in terms of its aim.

• To challenge the TOM to ensure that it is fit for purpose in the future, as opposed to simply addressing past and current issues.

• To influence the current structure of the requirements and prioritise any activity.

2) Vendor consultation with a focus on following objectives:

• To understand vendors’ perspectives on the proposed TOM and its prioritised 4 initiatives.

• To incorporate innovations into TOM to ensure the London Market can be sustained in the future.

• To ensure the TOM has been robustly challenged from outside of the London Market.In addition, the TOM programme spent much of November and early December 2015 holding market and vendor consultation events. Over 1600 people attended 28 events over the course of six weeks. The outputs were fed into the Blueprint and innovation work for further development.

Market engagement has included, but has not been limited to:

• A TOM Steering Board (with 11 market organisations represented and membership from all associations)

• TOM working group (with 6 market organisations represented and membership from all associations)

• Market Communities (e.g. Initiative Steering Boards and Initiative project teams and SMEs)

• Can you put something in here about the Integration Leads (ask Alison)

• Under 35 network (e.g. 3 U35 reps appointed to the Innovation Council and regular forums and focus groups on topics related to TOM.Wider market events (e.g. LMG Forum, CEO and COO roundtables, and presentations to the market networks)

11) How do you plan to engage other practitioners in the industry (e.g. brokers) and not just C-suite?

Our team are working to engage all Market participants, including C-Suite, Brokers, Underwriters, Carriers, Managing Agents, Under 35s etc, through relationships with Market Communities, the Associations and by holding TOM Events. This is in addition to our input into Market Networks such as the Next Generation insurance Network, which has a broad cross section of representatives from across the Market. Additionally, for those who have been in the Market for a number of years, engagement is through representation on the TOM Boards, TOM Working Group, and Initiative Working Groups etc.

12) How can I get more information regarding TOM or specific initiatives?

Our dedicated TOM website www.ISupportTom.London provides detailed information on TOM, the initiatives and scheduling.

If you have a specific question around TOM or require more information on a specific initiative, please contact the team at TOM@IsupportTOM.London

13) How can I support TOM or keep up with its progress?

You can show your support for TOM (and the London Market) and keep up with progress by registering your details on the homepage of this website. Link: www.ISupportTom.London.

Updates on TOM, its initiatives, and its activities will be regularly uploaded to the TOM website (referenced above) and will feature in the TOM monthly News Bites. Link: www.ISupportTom.London.

14) What is the overall programme funding?

The programme funding is £250m for the five year project.