How in-house brokers can prepare for MRCv3 and CDR

Compliance with Blueprint Two is a particular point of concern for firms placing and transacting risks using in-house brokers.

The Blueprint Two modernisation programme is a leading initiative for the future of Lloyd’s, with adoption of its mandated changes accelerating at pace. 

Earlier this year, the Data Council announced the publication of two foundational assets in the digital journey for the London Market: The Core Data Record (CDR v3.2) and Market Reform Contract v3 (MRC v3).

The next key milestone is the fast-approaching 30 September 2023, by which date the MRC v3 will come online.

With the opportunities for in-house brokers to benefit from better and cleaner data, this is the time to look at a solid data strategy.

What’s changing, and why?

By the end of Q3, all firms dealing directly with insureds on an open market basis will be required to comply with the MRC v3, with embedded structured data.

The CDR defines the data that needs to be collected by the point of bind to drive downstream processes, whilst the MRC v3 sets data standards; enabling accurate, standardised data including the CDR to move through the insurance lifecycle with little to no human intervention.

The current process for capturing data for the open market placement journey is slow, burdensome, and prone to error. The CDR and the MRC v3 will play a critical role in embedding data standards and strengthening data quality, enabling a data-first placement journey for the greater good of the London Market.

By adopting the core digital solution, market players will benefit from improved settlement time; data completeness with increased accuracy and consistent quality; and ultimately, improved operational resilience and agility.

This may cause a few headaches in the short-term for brokers who must now review their digital strategies; however, this adoption is fundamental to the future success of open market placement.

As the market embraces digital change, we are here to support our clients in meeting the new London Market requirements and reaping the benefits. If you need a helping hand or simply some advice, get in touch with the team. We can help you comprehend all things Blueprint Two and begin defining your strategic priorities.

Come and see us at the Verisk Insurance Conference to understand how your in-house broker will be affected under future at Lloyd’s: