Embracing smarter workflow is a simple and effective place to start improving efficiency and cutting costs in the London Market. It is completely in the control of carriers to make changes with minimal cost and disruption.
As Lloyd’s announced its 2017 results, most headlines focused on how the market swung to a loss following heavy natural catastrophe activity – a positive testament to the market’s ability to deliver large claims payouts after the most devastating global events.
However, our eyes were drawn to one piece of unwelcome analysis that noted the market’s expense ratio has barely altered year-on-year at around 40%. Whilst much of this figure is attributable to acquisition cost (brokerage and other fees), the operational plumbing at both market and carrier level is antiquated.
Whilst well-publicised modernisation initiatives such as the Lloyd’s Target Operating Model and Placing Platform Limited will help, carrier-side processing is “high touch”, presenting huge opportunities for improvement.
Unsustainable expense ratios
Lloyd’s itself said the market must speed up the adoption of the modernisation programme, which will digitise processes, reduce unsustainable expense ratios, and make it all the more attractive to do business with.
As we’ve noted the London Market is generating data at an exponential rate, but there is still a high proportion of duplication and unnecessary manual data entry, resulting in an unacceptable margin for error, and disorganised workflows.
Smarter workflow could be the most simple and effective place to start when it comes to reducing operational expense by driving down the ‘frictional costs’ that exist. DQPro helps carriers achieve this for data integrity and other business-side checks.
In fact, Leading London Market carriers are already benefiting from DQPro’s workflow to look across multiple platforms to identify issues upstream before they incur cost in secondary systems.
In practical terms, this means using innovative monitoring processes to automatically flag incorrect data as soon as it appears, and sending issues directly to the relevant business owner or team to be fixed/resolved within agreed timelines.
Remove human error
DQPro’s smart workflow technology takes human error and time constraints out of the equation by working 24/7 to automatically find and flag issues, notify the right person, and continue to alert any outstanding data issues until they are corrected. It will also provide an audit trail, including the resolution status of previous issues, and confirmation as to who in the business is accountable.
What gets measured gets improved – no more juggling and updating multiple spreadsheet logs, no more errors creeping in to your systems from 3rd party data entry providers, no more wasted time fixing data issues that someone else is already working on.
This smart workflow is essential in the London Market’s busy, complex and highly regulated environment, and offers peace of mind that decision makers are only dealing with what is relevant to them, whilst consistently ensuring data confidence.
Automatically finding and flagging data issues across system and against a bespoke and scalable set of controls is not only incredibly easy to set up – the system can be up and running within five days – but it also costs less than the salary for most senior data analysts. This also frees up said analysts to focus on using the quality data you have created as the building blocks for new partnerships and initiatives within the business.
If every business in the London market worked like this to reduce internal hidden frictional costs that can only be positive in driving down expenses.
Do you have data confidence? Are your business-side users accountable?
Know that you are doing the right thing with your data controls and ensure you can evidence it with DQPro. Book a DQPro Demo now.