Blueprint Two

Paving the way for innovation in the London market through back office data digitisation

In the London Market, the implementation of Blueprint Two is driving us towards modernisation. To date, this has specifically focused on digitising the back-office data. Traditionally this data has been viewed as less critical to decision-making processes, however its digitisation under Blueprint 2 will augment the decision-making process and the way the market operates.

Back-office data is often perceived as the less glamorous side of data management. Blueprint Two's focus on digitising this data is a strategy that recognises the potential of back-office operations as a catalyst for innovation, and therefore hopefully creates more attention and opportunities for innovation in the back office.

Here are some examples

1) Time

By automating and augmenting processes, reducing manual handling and rekeying and using technology solutions like APIs as the data transfer mechanism, rather than spreadsheets these will minimise the risk of human error and increase the speed of transaction processing. More time can be allocated towards continuous improvement, strategy and other improvements where we say today, we just don’t have the time.

2) Data Analytics and Insights

By having back-office data in a digital format, this enables easier and advanced analytics. This data can be leveraged to gain insights into operational trends, portfolio management and market dynamics. These insights are vital for decision-making, predicting future trends, and developing new or enhanced products and services to meet evolving customer needs.

3) Operational Resilience

Whilst not immediately obvious from an innovation lens, by transforming back-office data into a digital format, improved data quality and accessibility will allow insurers to effectively anticipate potential operational risks and develop robust and more insightful contingency plans, and in so doing, enhancing their overall resilience and ensuring uninterrupted service to clients.

Additionally, digitisation facilitates better data quality and accessibility, enabling underwriting or broking managers to have a more accurate and comprehensive view of their portfolios. This enhanced visibility is crucial for effective portfolio assessment, management, and mitigation.

4) Regulatory Compliance and Transparency

One of the main use cases for the Core Data Record is the provision of clean regulatory data. By digitising the back-office data, this simplifies compliance processes, making it easier to track, report, and audit information. By meeting regulatory requirements, and whilst not directly enabling innovation, it does create an environment where innovation is more feasible and sustainable – by having a lower risk profile, organisations can invest more in innovation and potentially a faster pathway to market for new and innovative products with a lower regulatory framework.

5) Collaboration and Standardisation

Common data standards ensure that data can be easily shared and understood across different systems and organisations. This interoperability is essential for collaborative innovations, where insights and advancements often stem from pooling data and expertise from multiple sources. For example enabling more comprehensive risk models and improved underwriting and broking processes.

6) Driving Innovation

The digitisation of back-office data is a foundation for innovation. With streamlined processes and enriched data, organisations can explore new technologies like artificial intelligence and machine learning. Using these technologies on a poor data foundation will not enable success: “rubbish in, rubbish out”. The hottest topic in town, these technologies can be used in predictive modelling, fraud detection, enhanced portfolio analytics and more tailored insurance solutions, setting the stage for a more innovative and competitive market.

So what?

Blueprint 2’s focus on digitising back-office data in the London Market is a strategic lever to move the market forward.

Innovation isn’t solely driven by front-line, decision-making data, but also significantly by the efficient management of operational data. By transforming these traditionally manual and time-consuming processes, the London Market is not only enhancing better, faster, cheaper but also positioning itself as the foundation for innovation.