By Pete Smyth, Vice President, Ebix Europe
The London insurance market is on the cusp of a transformative shift—one that hinges on the concept of becoming “data-first.” But as with any revolution, it’s important to ask: Is the market genuinely ready to prioritise data, or is it merely thirsty for innovation, lurking in the shadows like a vampire eager to feast on the life-blood of new technologies, without fully grasping the need for root and branch change to achieve it? The question of “data thirst or data first” reveals a nuanced challenge at the core of modernising this historically document-heavy sector.
The Road to Modernisation: Data at the Heart
Blueprint Two, the vision to digitise and modernise the London market, places data at the heart of the transformation. A key aspect of this first stage of modernisation is the Core Data Record (CDR) and Market Reform Contract v3 (MRC v3), which are designed to embed data standards and improve the quality of information flowing through insurance transactions. This focus on accurate, standardised data will significantly improve the market’s back office accounting and settlement function. But the promised future where the entire transaction lifecycle, from placing to settlement, can be digitally optimised remains something like a haunting apparition, yet to fully materialise.
In practice, Phase 1 of Blueprint Two is some time off implementation – currently slated for the first quarter of 2025, and phase 2, where the CDR kick-starts the data revolution remains to be rescheduled. But the principle of “data-first” is one that is evolving in parallel to, and permeates beyond, this initiative and will reache every corner of the market. The market’s brokers and underwriters must confront their readiness to adopt a truly data-first mindset.
What Does “Data First” Mean?
A data-first approach means prioritising the seamless integration of data into every step of the insurance process, from submission, quoting and binding through to claims management. This requires shifting away from document-heavy methods to systems that validate, process, and transfer data in real-time, reducing human intervention. The aim is to create an ecosystem where data flows effortlessly across systems, improving speed, accuracy, and efficiency.
Yet, for many specialty market participants, this requires a significant cultural and operational shift. London market brokers and underwriters have long relied on tried-and-true processes, including manually handled documents and personal relationships. The leap to a digital-first, data-driven market is substantial, and one that has sparked much debate, and a significant volume of investment over the years, with disappointing little overall progress to date.
Data Thirst: An Appetite for Innovation
That being said, there’s no doubt that the London market recognises the potential of technology to streamline complex risk placement, increase transparency, and unlock efficiencies. However, this “thirst” for innovation does not always equate to readiness.
The appetite for digital tools often comes before the infrastructure and skills are in place to fully leverage their capabilities. Many firms still struggle with fragmented data silos, inconsistent data quality, and outdated systems that are not yet integrated into the broader data-first framework. However, this “thirst” for innovation can feel like a relentless, unending hunger—eager for new tech yet sometimes missing the core strength needed to leverage it fully.
Data First: Building a Foundation for Success
Achieving a true data-first marketplace requires more than new platforms – it demands a concerted effort to overhaul legacy systems, embed data standards, and foster a data-centric culture. Here are several best practices the London market must embrace to ensure it’s ready:
- Data Quality and Standardisation: The cornerstone of a data-first approach is clean, accurate, and standardised data. Without this foundation, even the most advanced digital tools will fall short. The Data Council, CDR and MRC v3 initiatives are steps in the right direction, but firms must ensure that their internal processes are aligned with these standards to avoid data inconsistencies that can slow down transactions.
- Automation and Integration: Platforms that offer multiple data input options – manual, document conversion, and Application Programme Interfaces – are valuable because they provide flexibility for users at different stages of digital maturity. The market must focus on enhancing API integration between systems, ensuring that data can move fluidly across the entire insurance chain, reducing friction and improving speed.
- Human Expertise and Technology: In a data-first market, human expertise is critical. Underwriters, brokers, and claims handlers bring nuanced judgement to complex risks that algorithms alone cannot replace. The goal should be to blend human insight with data-driven decision-making, allowing professionals to focus on high-value tasks while technology handles routine data processing.
- Training and Cultural Change: A data-first approach won’t succeed without buy-in from the people who use it. Firms need to invest in training to help staff understand the benefits of data-driven tools and how to use them effectively. Additionally, a cultural shift toward valuing data as a strategic asset is necessary for the market to realise the full potential of digital transformation.
- The Distribution Chain: Ultimately, London gets most of its data from the insured clients, their risk managers and their intermediaries. Our thirst for data-first is therefore largely contingent upon receiving that data in a format that is valid, predictable and consumable or none of the above will deliver the transformation we seek. In essence, we cannot be data-first when all of our inputs are not.
The Path Forward
While the London market is undeniably thirsty for the efficiencies that a data-first approach promises, there is work to be done to ensure that this thirst translates into readiness. The key lies in creating an environment where data flows seamlessly across all stages of the insurance process, supported by standards, technology, and human expertise. Those who get it right will lead the way, while others may find themselves in the shadows—haunted by inefficiencies they failed to leave behind.
Ultimately, the journey from “data thirst” to “data first” will require patience, investment, and a focus on long-term transformation rather than quick wins. Those who get it right will lead the way in a more efficient, transparent, and data-driven London insurance market, forever freed from the cobwebs of its past.
Pete Smyth, Vice President, Ebix Europe
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