Most Lloyd’s coverholders begin as brokers, and then become tribunalized. This is often the start of the issuing policies process for brokers. And though it might seem like a natural progression, the underlying workflows and responsibilities are different.
Insurance brokerages are designed and setup to be just that: brokers. They take insured requests and broker them to find the best insurance product among a group of insurers. As a Lloyd’s coverholder, however, the broker is now acting as an insurer: issuing policies at the point of sale.
This begs the question: can the operational processes and tools used to manage a brokered book of business be used to effectively manage and grow an issuer-type book, like Lloyd’s? Maybe, but unlikely. Here's the 1 thing that keeps coverholders from truly maximizing the value of their Lloyd's contract: multiple entry of data.
Multiple re-entry of data kills productivity (and that hurts profits)
Many brokers use the same tools to manage their Lloyd’s book as they use to manage their domestic polices: a broker management system (BMS) with Word and/or Excel. The same problems occur the moment policy data is entered into either of these programs – it’s stuck.
Or, it’s not machinable. This means that in order to get any one piece of data, or information, into another document or program, you have to copy and paste each data item you want moved.
If you consider this in the context of how your staff issue and manage your Lloyd’s policies, there are numerous times when information is copy and pasted, such as:
- Preparing a proposal;
- Issuing a policy if the proposal is accepted;
- Reporting to Lineage or through a Bordereaux;
- Issuing an endorsement; and
- Renewing the policy.
Each time the policy lifecycle stage changes, it requires copying and pasting of information. And as the amount of information that has to be manually moved from document to document grows, so too does the time wasted.
And wasted time means less profit. Good-bye extra 5% commission.
Machinable data = Efficiency = Profit
The true value of machinable data is in its ability to be used over and over. Quote. Policy. Upload to Lineage or creating a bordereaux. The task does not really matter as long as the underlying data exists.
If you are building your Lloyd's book of business, make sure it's on a foundation of machinable data. The ability to grow and scale will allow your staff to process more business and help your brokerage increase its profit.