The London Market is on the precipice of a digital transformation, and one significant initiative propelling this change is the Core Data Record (CDR). This strategic move aims to standardise and streamline the collection of critical transaction data, marking a pivotal leap in market efficiency. InsurTech Novidea explains why CDR matters for London market brokers.
The solution was introduced by Lloyd’s as part of the Lloyd’s Blueprint Two programme. It “provides the critical transactional data which needs to be collected by the point of bind to drive downstream processes.”
Primarily collected during binding, CDR acts as a driving force for various downstream processes. It underpins premium validation, prompt claims matching, tax validation, regulatory compliance, and core reporting. Embracing digital advancements like the CDR is poised to be indispensable for brokers and insurers in securing sustainable success in today’s digital landscape.
The integration of CDR into the market heralds several advantages, including heightened accuracy, reduced processing times, and elevated end-customer experiences. It serves by providing essential policy data in electronic formats, facilitating information validation at an earlier stage in the process compared to the current prolonged timelines.
Minimising rekeying of information emerges as a critical benefit. The traditional paper-based approach involving multiple reinscriptions across various systems poses not only additional work but also considerable potential for errors. With CDR’s implementation, data validation occurs early, ensuring accuracy and expediting settlement processes.
On top of this, the introduction of CDR also accelerates settlements, fosters standardised operations across diverse markets, amplifies data capture for improved management information, and enhances query handling, transitioning from phone or email-based queries to systematic tracking.
However, despite the benefits, the road to adopting CDR presents substantial challenges. Brokers need to upgrade systems to support both old and new processes. The pivotal shift requires technological upgrades, restructuring workforce activities, and transitioning post-placement tasks into the placement process.
Its implementation necessitates not just technical adaptations but also significant shifts in business operations. Adopting a new work methodology demands strategic planning, workforce restructuring, and preparedness for an evolving market landscape.
The successful integration of CDR relies significantly on technology. API-enabled systems, automated workflows, robust reporting capabilities, and adaptable processes have emerged as crucial prerequisites to seamlessly transition into the CDR framework, bridging the gap between legacy systems and modern workflows.
The introduction of CDR heralds a significant transformation for brokers, insurers, and customers alike. Embracing these changes is pivotal as CDR not only signifies progress but also presents an opportunity to propel the industry away from outdated legacy systems towards a more efficient operational landscape. To fully realise this potential, the integration of API-enabled technology becomes imperative, paving the way for a seamless transition and ushering in a new era of efficiency and innovation in the industry.
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