Blueprint Two

Helping insurance firms navigate the London Market change programme.

Reform in the London Market is in reality a constant process, with numerous initiatives addressing different aspects of the business processes that bring together one of the largest insurance marketplaces in the world. Prominent amongst this landscape is BluePrint Two, one of the largest programmes of change ever undertaken, through a joint initiative with Lloyd’s, Velonetic and the IUA, supported by the LMA. Whilst Lloyd’s may be a major force in the programme of change, this initiative will impact most London Market participants including insurance companies, brokers and MGAs.

The programme is deploying in 2 phases, with phase one going live on 1^st July 2024 and phase two in April 2025.

Phase one:

The London Market bureau services currently rely on technology that is increasingly difficult to maintain – in Operational Resilience terms, they are Important Business Services that must be maintained.

The core objective is to maintain the pre-eminence of London in the worldwide insurance marketplace through the provision of industry-standard solutions and automation for the placement and settlement of insurance contracts that deliver enhanced customer satisfaction.

Phase one will replace and upgrade a variety of services currently used across the market, many of which are built on technology that pre-dates the current millennium. Systems such as POSH, LIDS and ECF will be replaced with a new single digital platform to support processing services for open market and delegated authority business.

Phase one is a mandatory change for all users of the existing ‘Bureau’ solution and will cutover on 1^st July 2024 across the entire market.

Phase two:

Phase two will offer a complete set of digital services making the most of the new digital platform. Market participants will be able to integrate their systems directly with the new digital platform for end-to-end digital risk placement, further increasing the benefit case.

Firms will be able to decide when they would like to move from phase one to phase two with an expectation that all firms will have completed the transition within a couple of years.

You can read more information about the change programme on the Blueprint Two website.

Related ICSR Services

The ICSR Operations team supports regulated insurance firms as they respond and adapt to organisational change such as Blueprint Two, helping them maximise the potential value for their business delivered through the market updates to operating models and methods of working as well as safely deliver the changes required in a compliant manner. . Our team can help firms:

• Understand the benefits of participation in the London Market reforms and in certain very specific circumstances, where it may make sense to take a different path;
• Plan for and implement the necessary changes to their operational processes and technology to ensure their business is positioned to adapt to the change positively
• Understand the regulatory implications of change, with consideration being given to matters such as Operational Resilience planning and other controls and frameworks that have IT and operational reliance dependencies
• Consider the need for, and implication of, any related change programmes that may be required

Blueprint Two: Assurance Health Check Service

With phase one around the corner, we are helping firms understand their regulatory requirements in delivering the changes required. Whilst the impact of change for market participants is being kept to a minimum, it remains a major event for the London Market and carries a significant amount of risk if things don’t go to plan. The changes will invariably be seen as impacting Important Business Services (IBS) like claims, a factor that brings it into scope for the PRA and FCA rules on operational resilience and outsourcing. Firms will be required to be able to demonstrate that they have properly considered the implications and updated their frameworks accordingly. Impact assessment, risk assessment and mitigation plans are amongst the activities that will be required.

Why not let ICSR review your firm’s risk and compliance profile ahead of phase one with our Blueprint Two Assurance Healthcheck Service? Our solution is a 4 stage approach that delivers a detailed assurance report covering:

• the key risks and issues;
• recommendations, including:
  • Rationale for the risk rating based on evidence provided;
  • Description of the risk(s) associated with the finding; and
  • Specific recommendation(s) to mitigate the risk(s) and improve efficiency.

We aim to undertake the whole process within 3-4 weeks, from start to ‘Findings and recommendations’ allowing your firm to quickly focus on any change required. Contact us to find out more.

Our team is adept at delivering against the backdrop of tight timelines and in situations where there are imperfect resources, knowledge or information. We help firms implement the change programmes necessary to benefit from the operational efficiencies that market change programmes such as Blueprint Two promise, but are so often missed by firms unable to make the necessary changes to their own operational processes and systems.

If you would like to understand more about the way your firm needs to adapt in response to the Blueprint Two changes to London Market insurance placement and claims processing, please speak with Benoit Steulet, ICSR Operations Director, or any other member of the ICSR team.

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