Blueprint Two: What it means for your data

Anna BurgeTim Bates
Anna Burge, Tim Bates03 May 2023

As one of the technology companies supplying the Lloyd's market, we explain why it's vital to keep up to date with Blueprint Two.

Blueprint Two: What it means for your data

We thought it was important to analyse how Blueprint Two will impact the market, and provide more context around the real-world changes the programme could bring. So we're here to explain how you can get your data and processes 'Blueprint Two-ready'. 

Data decisions

In order to operate in the digital insurance marketplace envisioned in BP2, members of the insurance value chain face a key choice when it comes to their existing technology and operations: what is the best way to extract and standardise data so it can be used in the Lloyd's marketplace?

To use Lloyd's systems, data must be suitable for use in the Core Data Record (the mandatory data set required to transact digitally), the Digital Spine (services that underpin the planned initiatives) and the Digital Gateway (where users will validate, enrich, route, store and report data from placement to processing). 

This means it should be of sufficient quantity, good quality and in a suitable format. But how do insurers make sure their data will work within these digital initiatives? And does it make more sense to start from the ground up with their systems or add on to what they already have?

We think there are several solutions:

1. Use automation to extract and triage data at the beginning of the life-cycle for use elsewhere in the value chain

2. Procure a platform that has Lloyd's standards built in

3. Build upon existing systems to make existing technology Lloyd's-compliant

This means that insurers and brokers will either have to adapt their existing ecosystem to operate with the new standards or consider a more foundational change that provides a stronger basis for further growth and development.

1. Automate submission data

Initial submission data is fundamental to the rest of the value chain.

Data should be considered before reviewing any other solution. The automated extraction of submission data is a valuable tool that is relevant when either procuring a new platform or integrating with legacy systems because, when manually undertaken, it is laborious, inefficient and low-value work.

Extract and augment

By automatically extracting, augmenting and standardising data from underwriting attachments at the beginning of the policy lifecycle (schedule of values, locations, claims history), insurers and brokers can harness all data points for downstream use in the other Lloyd's systems.

Data standardisation

Standardisation could then be easily performed with all data received from coverholders in any format (such as Bordereau) and would allow for validation checks before conversion into the required format for integration with the Lloyd's Delegated Data Manager.

2. Add to existing systems

The reality is that some organisations are not able to make fundamental changes and replace their existing core systems. In this case, adopting tools that give the ability to integrate with existing Lloyd's applications is key.

API integration

The first step to this should be to make sure that existing applications are API-enabled: this allows for rapid integration with other third parties to build an ecosystem that is tailored to the company's needs and compliant with Lloyd's.

Policy and document digitisation

The next step should be to consider the addition of data extraction/enhancement tools onto existing technology so that data can be integrated across other systems, as mentioned in point 1. For example, technologies can be added on to provide the following functionalities:

  • Machine learning-based solutions to turn policy documents (MRC/slip) into structured digital data, meaning immediate integration with other tools (triage/'smart follow' underwriting) and applications

  • Policies can also be shared using existing channels (email/PPL) and transformed into the required format for usage within the BP2 framework

  • Once a policy has been structured into digital data it is straightforward to implement automated decision making; 'Smart follow' underwriting is easily achievable using this approach.

3. Build a platform

For a solution that meets Lloyd's standards, our first suggestion would be working with a platform provider to procure a Lloyd's-ready system.

Solid foundations

Next generation insurance platforms should enable companies to build the insurance organisations of the future. Having a solid foundation is key, and whilst potentially the most disruptive approach, sometimes a significant step change in the short-term is required to deliver the largest benefits long-term.

Starting afresh means systems can include all the relevant Lloyd's integrations: data extraction and enhancement, triaging and prioritisation and so on.

Platform providers

Technology providers who wish to supply Lloyd's clients should also be aware of these standards and evolve to support relevant integrations for the other necessary components of digital onboarding. Where possible, providers should encourage clients to adopt these standards as minimum requirements, making integrations easier.

Some examples of these standards are:

  • The Core Data Record, which will define minimum required data points

  • The Digital Spine, which covers creating ‘valid’ policies only, and MRCv3 should allow for real-time digital negotiation between brokers and underwriters (defining standardised data points across the market could help reduce the amount of customisation and analysis required for each customer)

As to be expected with any overhaul, changes will take time and won't be straightforward. But for the whole industry, readying for these changes will require a focus on how companies look at and use their data. First and foremost, carriers and brokers will need to adopt and adhere to the new standards when they are set by Lloyd's.

This can be done via the platform method, or by building on top of existing systems – but either way, those that do this (and soon) will be ahead of the game when it comes to being Blueprint Two-ready, and can build the foundation required to meet and exceed future targets mandated by Lloyd's.

For more information, get in touch with us today.

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