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. Currently representing one of the largest programmes of change ever undertaken is a joint initiative with Lloyd’s, DXC Technology and the IUA, supported by the LMA which forms the lions share of the Blueprint2 initiative. Whilst it is being delivered within ‘Blueprint2’, the initiative is actually wider than this. Lloyd’s may be a major force in the programme of change, but insurance companies and brokers should be very aware that this will affect any insurance firm that does business in what is commonly known as ‘the London Market.’
Whether firms conclude that their interests are best served by being part of the change programme or not, there is no option for ‘no change’. Firms need to ask themselves two key questions:
- To what extent is my firm currently reliant on any of the central bureau services that help firms in the London market transact business and pay claims?
- Am I confident that I understand the full extent of the impact on my organisation and the possible benefits for adopting and challenges if not.
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.
It 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 new solutions utilising state of the art technology.
You can read more information about the change programme on the Blueprint2 website.
ICSR is helping customer firms understand the answer to these questions against the backdrop of their wider regulatory obligations and operational challenges. We believe in helping firms take a truly holistic view to the way they implement change.
Change brings risk for firms that are not prepared. The timeline below represents an indication of some of the high-level milestones for Bureau replacement as part of Blueprint2
Q1 2023: Foundational build and global premium and claims service open market
Q2 2024: London premium and claims – Open market and Delegated Authority Premium and Claims Services
Q3 2024: Digital gateway build
Within this timeline, three workstreams are overlapping to ensure all relevant market services are effectively delivered. These are for open market business, delegated authorities & claims.
Related ICSR Services
The ICSR Operations team supports regulated insurance firms as they respond and adapt to organisational change such as Blueprint2, helping them maximise the potential value for their business delivered through the market updates to operating models and methods of working. Whilst firms are not obligated to participate in the Blueprint2 changes, a conscious decision to disengage brings with it its own operational challenges. 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
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 Blueprint2promise, 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 Blueprint2 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.
Latest News: Operations
Our team have produced a number of articles on the subject of Operations. The most recent are shown below. To see all articles on the subject, please click here to go to our news page.
The PRA Business Plan was released in early May and sets out their workplan, strategy and budget for the 2023/24 period of activity. Claire King looks at the key points and issues included, and one key point that is not mentioned.
The FCA Business Plan sets the regulatory agenda for insurance firms in the coming 12 months. Released on 5th April 2023, the current plan has a strong focus on the way the FCA uses the Threshold Conditions to instil confidence in consumers. Watch the recording as Kenneth Underhill looks at the plan in more detail.
On 10th January, the PRA issued a letter to all Life and General Insurers, setting out its insurance supervision priorities for 2023. Kenneth Underhill looks at the issues insurance firms need to be focussed on in 2023.
Case Studies: Operations
ICSR has carried out a number of assignments helping clients with their Operations.
Many of our Talent Pool members have specific skills and experience relevant to operational resilience. Please use the search box to find people using specific keywords (eg. ‘Operations’) or by using the categories in the ‘slider’ settings.