Taking a structured approach
Michael believes that LM TOM, a key component of the London Market modernisation programme, needs to succeed to make London an easier and more cost effective place to do business. “London has to change and embrace more effective ways of working,” says Michael. “It must become more nimble, operating costs need to be much lower.”
“Today the friction costs are way too high in an ever-changing and increasingly competitive environment. LM TOM is focused on modernising the market and there is good support for the programme. The market realises that if London doesn’t become easier to do business with it could lose market share to other regions. London’s expense ratio is north of 40 per cent which is not sustainable. It is also antiquated in how it operates compared to other market places.”
Michael’s commitment to and belief in the TOM aren’t just soundbites. He was recently appointed Chair of the SDC Steering Group which will contribute significantly towards straight-through processing. SDC is one of the TOM programme's four initial phase initiatives that are modernising the London Market. “I chose SDC as I believe it will have a very positive impact on the London Market. SDC transforms information held in a variety of formats to a global placement message. Benefits of SDC include reducing costs and improving the accuracy and quality of data which is a key part of London’s digital journey. In addition, SDCshould also help in increasing the usage of Placing Platform Limited (PPL). This latter point also illustrates how the LM TOM initiatives will work together in providing important market efficiencies,” explains Michael.
Michael is just one of many market practitioners who give up their time to join TOM steering groups and working groups which is key to driving the programme forwards and ensuring that the LM TOM’s initiatives are built by the market for the market.
“Carrier engagement and feedback has helped develop and enhance the overall SDC service proposition. There have been many practitioners and operational experts from carriers involved in the initiative. This has been fundamental to developing a robust service that meets carriers’ needs,” Michael explains. “This market commitment and support is imperative in ensuring that the programme continues to progress and deliver solutions which benefit London.
“We must get beyond a tipping point of usage of the TOM’s different initiatives to gain the full business benefits of the programme which will further drive the market’s commitment and support of LM TOM. This will help to ensure that that London maintains its position as the world’s leading insurance market,” he adds.