The context

Blueprint Two (BP2) is the London Market’s modernisation programme aimed at delivering a digitally enabled marketplace. At its foundations are the Core Data Record (CDR) and the Market Reform Contract version 3 (MRCv3) – a new (re)insurance contract in a changed format and structure that is machine readable.

In 2023 BMS Group, the independent specialist insurance and reinsurance broker, partnered with digital placement and underwriting specialists Artificial Labs to adopt a contract creation tool that would be compliant with these digitisation initiatives.

The aim was to implement a tool that would increase broker confidence and efficiency, while actively demonstrating the readiness of digital technology to generate MRCv3 compliant contracts to an ACORD standard, establishing a solid foundation to support future CDR requirements.

Building a platform for success

In order to scenario test the use of the Contract Builder platform, several pilot programmes took place, ahead of phase one of the product rollout in February 2024. Teams from BMS worked alongside Artificial to configure and further enhance the base application, going through numerous development sprints and rounds of testing.

Working collaboratively throughout each of the pilot programmes allowed BMS and Artificial to quickly address any challenges that arose, including managing user needs with endorsement functionality, and managing the clause library.

Creating endorsement functionality was particularly important, and challenging. It required a pragmatic approach, reflecting the need for updated LMA guidance that better reflects modern electronic placement capabilities. Artificial have invested, alongside BMS Group and other parties, on their Broker Advisory Board and continue to enhance endorsement functionality while being prepared to react to updated market guidance.

Managing the clause library was also identified as one of the most crucial elements of the platform – and the pilot programme revealed that the scale of this task had been initially underestimated. Removing the 'copy, copy' approach from each clause, applying uniform naming conventions, and prioritising time efficiency when creating templates to build the clause library were some ways BMS overcame this challenge.

An innovative solution

Contract Builder is a digital contract building platform that is MRCv3 compliant and leverages editing and formatting features that unify templates across teams and improves broker efficiency. Integrating seamlessly into BMS’s existing ‘Broker Workbench’, Contract Builder empowers BMS teams to merge risk models and legal documents with precise, compliant and automatically populated data, starting with the slip assembly process.

Not only is the product itself innovative, so too was the way it was developed. Contract Builder is not an ‘off the shelf’ application, so its development required a team from BMS to work closely alongside Artificial to configure and enhance the base application.

Artificial simplified contract creation while maintaining a familiar interface for brokers. With this in mind, the platform resembles a Microsoft Word document but is powered by their robust data-extraction technology, and market-leading API capabilities.

Brokers input client and risk information into a data entry screen – a process that can also be automated or supplemented by machine learning where necessary. This determines the relevant fields from the CDR based on responses provided, customising the question set delivered to the broker accordingly. Contract Builder then generates the MRCv3 in real-time.

By utilising structured and standardised data, re-keying can be eliminated, leading to improved data accuracy through validation at source to the ACORD standard. This can also reduce the risk of errors and omissions. Elsewhere, broader data capture enables brokers to delve into portfolio analytics, conduct client benchmarking and unlock greater commercial value from data. Additionally, clause libraries and templates enhance coverage consistency across portfolios.

An instant and growing impact

Contract Builder is the result of a genuinely collaborative project that will not only transform the production of contract documentation but will also allow BMS to meet the demands of the new digital era in the London market.

During the pilot period, six BMS business units engaged with Contract Builder. Today, following widespread roll-out of the platform, all business units within BMS have implemented and are now actively using the platform.

To date, over 5000 submissions have been created. For some teams this has already generated a 50% reduction in contract creation time; with established templates, and depending on the complexity of the placements, this could increase to 70%-80%.

By streamlining its internal processes and reducing the time required to generate compliant MRCv3 contracts, BMS is enabling its teams to devote more time to serving clients. The platform’s forthcoming integration with internal systems will further enhance efficiency by eliminating redundant data entry, paving the way for smoother operations and increased productivity. Additional time efficiency benefits are also anticipated at contract renewal stage.

Today, Contract Builder is setting a new standard for innovation within the market. Multiple other broking firms have now also chosen to adopt Contract Builder, cementing the platform’s position as industry-leading.

To find out more about Contract Builder, get in touch.