London Market

A Market with history, not a historic market

The London Market is a traditional market steeped in history, but this should not mean it conducts its business in an old fashioned manner. With the increasing costs and complexity of doing business, participants in the London Market are quite rightly reviewing their administrative functions to improve efficiency and reduce costs. In addition, increasingly tough regulatory requirements have emerged as a result of recent FSA and LMP reviews. The countdown has begun in earnest for the London market. Its drive to deliver contract certainty has little time to run before the Financial Services Authority’s (FSA) deadline expires at the end of 2006.

Business in the London Market continues to be brokered, for the most part, using the “old fashioned” or “face-to-face” approach. As a result of this largely manual process, which incorporates a number of steps in a lengthy chain, all but larger risks have become uneconomic unless they are accepted by Treaty, Line Slips or Binding Authority.

Improving the Information & Communication Flow

Underwriters are not informed in a timely manner about the capacity of the contract and how it is performing. As a result business often continues to be written unprofitably when earlier feedback would have enabled the underwriter to take corrective action either on price or terms and conditions.

Lloyd’s brokers handle the administration of Covers. At present the manual nature of processing this business leads to inefficiency and results in major delays in the flow of information and money. In addition, the overall cost of this administration is high. Therefore the need for improved processing is clear as other markets compete more effectively in the same arena.

The challenge for the London Market is how to streamline a process that involves a number of steps in a lengthy chain – a chain that includes Agents, Coverholders, Lloyd’s Brokers, Bureau processing and Underwriter processing. To date attempts to rationalise this process have been focussed on individual steps or groups of steps in the chain and not on the entire end-to-end process.

The London Market Solution

The UniRisX Binding Authority module is able to improve an organization’s performance by harnessing the power of true end to end business transactions to achieve greater efficiency in all aspects of Binding authorities and programme administration.

Utilising a simple straight through, light touch process, UniRisX can reduce administration costs dramatically. Removal of the manual processes will reduce the many errors that can creep in through all parts of the chain.

UniRisX allows all the monitoring and control information to be captured by Business Users, this includes:

• Lead and follower underwriters and levels, automated write-up / write down
• Commission levels throughout the full distribution chain
• Financial limits (min, max, step refer levels)
• Geographical limitations
• Rating levels
• Aggregate controls (including rolling, down to Zip code levels)
• Warning levels (Sums insured, Gross premium, aggregation levels)
• Documentation requirements (any mandatory, optional, state documents, clauses, exclusions, wordings etc)
• Any third party access (TPA, Claims etc)
• Compliance requirements
• Storage of licences and other documentation

Binders can be for any class of business, single or multiple Coverholders, multi-insurer, fully delegated or prior submit, along with full multi-currency and multi-language products. In particular any specific Country or state legislation documentation, fees and taxes can be set up and administered automatically.

UniRisX will work out the correct policy pack based on the rules entered, the answers provided at the time of risk set up and geographical location of the risk so that in call cases the policy documentation is accurate, eliminating E&O situations.

Any distribution channel can be set up and controlled using UniRisX and all details can be changed via endorsements, with a full audit trail maintained.

What does this mean for London Market Organisations?

For the Coverholder (or end user): 

• Automated validation of data entry - reducing E&Os
• Automated quoting – providing enhanced customer service
• Automated Aggregation checking
• Policy documentation produced at the point of sale
• Rapid renewals, extensions and mid-term adjustments
• Online tracking of policies and claims
• Automatic production of statutory reports
• Product controls managed online at point of entry
• Automated workflow and referral controls across both internal organizational and cross company distribution channel

For the Broker:

• Compliant Binder processes
• Quality Data Capture
• Automated production of statutory reports and bordereaux
• The ability to react to management information requests from Underwriters
• Full book analysis to aid binder renewal process
• Light touch processing to reduce administration costs
• Workflow can take advantage of multi-time zone processing
• Ability to give third party direct access to data and documentation
• Fully audited transaction control

For the Underwriter:

• Compliant Binder processes
• Rapid set up and distribution of new products with pin-point targeting and control
• Immediate expanded reach of distribution channel
• Safe knowledge that delegated business is under control
• Reduced E&O exposure through compliant processes and accurate policy writing
• Quality Data Capture
• Accurate reinsurance profiles
• Reduced administration costs through light touch processing and self service options
• Ability to manage multiple books of business through one point of entry
• Real-time and accurate exposure information
• Reactive ability to change product profile based on market conditions
• Proactive ability to anticipate new business opportunities
• Ability to give third party direct access to data and documentation
• Fully audited transaction control

Increased risk control = increased operational efficiency = increased profit margins. Underpinned by an adaptable rating engine, UniRisX allows our clients to improve their organizational performance and quickly develop appropriate products using real time management information. The service substantially reduces the cost and complexity of administration through “one & done” Straight Thru Processing.

Learn more about UniRisX click here or to discuss our London Market solution, contact Tony Ferguson at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it