The market has a responsibility to deliver high-quality data: LMA's Cameron
Improving data standards and delivering more accurate data will provide an 'immediate advantage' to the market
The work of the new London market Data Council will provide efficiency benefits ahead of the major overhaul of the market’s digital infrastructure.
Speaking to Insurance Day, Lloyd’s Market Association chief executive, Sheila Cameron, said improving data standards and delivering more accurate data will provide an “immediate advantage” for the market before the creation of the new digital platform by DXC.
“There is benefit to be had by having complete and accurate data delivered to the front door of DXC, even if the machine isn’t built for another six months,” Cameron, who chairs the Data Council, said.
Improved data accuracy will reduce the amount of “rework” that needs to be done – thought to be in the region of 50% – when the back office data is processed by DXC for settlement and reporting.
“If we can get to the point where we have data standards and we have ensured the accuracy of the data arriving at DXC’s front door, you automatically cut that rework out. That is an advantage immediately,” Cameron said.
The Data Council, which met formally for the first time last month, is focused on driving the digitisation of the London market through a commitment to using standardised and high-quality data.
Its work will focus on areas such as data standards, the Core Data Record – the critical transaction information that will drive an increase in automated processes – and commutable contracts.
“I describe the role of the Data Council as creating the Highway Code,” Cameron said. “I want it to articulate what the rules are. For example, should the year of account be two digits or four digits? We all need to do that in a consistent way when we capture it in our systems.”
The council's work is not about building new systems. “We are here to say: this is what data will look like,” Cameron said. “It will be down to each individual firm to innovate around that as to what systems they want to put in place, what payload of data to exchange with each other and how frequently.”
The CDR will be a key area of focus for the Data Council. The CDR relates to the back-office functions of settlement – either premiums or claims – and reporting for regulatory and tax purposes.
Lloyd’s is aiming to provide a draft CDR to the Data Council for review by the end of March.
The new contract with DXC, which will create new digital platform for the market, will build the technology to “catch” the CDR and to push it through to an automated process whereby settlement, regulatory reporting and tax reporting can take place – and to do so more quickly and efficiently than at present.
The aim of the Data Council is to ensure the data arriving at DXC is of sufficient quality that ultimately it will be viewed as “irrefutable”, Cameron said.
“We cannot underestimate the value of delivering high-quality data to the front door to start with. We, as a market, have a responsibility to do that,” Cameron said.