An interesting read, Lloyd's new CDO Simon Asplen-Taylor is discussing the role of CDO, taking Data to the top table takes a deep understanding of what it is and what it can do in the right hands, a creative masterpeice if handled correctly.
But is Lloyd's embracing data also making enough of a difference fast enough? is change being made for changes sake? and more importantly is the focus on the right data from the right sources?
The crux of the issue, as I see it, is how to save time inputting the same data in to multiple systems when the source of that data, at the beginning of the chain, doesn't have to collect it all, coming from multiple territories each with their own local data policies and when the insured's appetite for filling in forms, even if digital diminishes with time.
Some big disruptive ideas are needed but at grass roots the data may originate from a farmstead in Arizona, a livery yard in Kent, or a ship yard in Minsk.
Whilst APIs to 3rd party systems are the solution in many cases to augment what you have, there seems there is a wave of the community that think APIs are the magic to solve the problem and yet at the same time they don't know what the problem is.
We need to remember insurance only handles data and money, and a diminishing amount of paper thankfully, but crucially no logistics or manufacturing, all framed within a Service. Perhaps we should see a CDO in every broker and MGA? To see Data on the board there, but equally thinking in the round not as an island. Uniquely in this industry its all about sharing.
Lloyd's itself, as a Corporation, is at the end of the chain of the data, like seeing the train of data heading towards its station buffers at Waterloo Station, whereas the MGA and Broker is in the middle, managing data from multiple sources in multi formats and Lloyd's may be only one of many entities vying for that data.
The market must invest more time in their data, getting more of it in a structured manner, not shy away from getting the Industry codes or trading names of their Insured's, or the finer details of the beam and length of a Yacht, the fire break distances in a forest or the number of procedures performed by a Clinic.
This should be a focus of the Intermediary's Strategy, how to leverage the information locked up in the data. But first you need a system to collect that data, augment it and present it for analysis. Doing that in a structured way, for any class and from DA to Reinsurance doesn't provide a plethora of choice... its needs a mindset of collaboration and it isn't easy, it isn't all that cheap and it isn't magic!
For me, the most challenging aspect is people and their way of thinking. If you think about it, Lloyds has been around for 334 years. It has had the same systems and processes in place for some time, so now as we are embracing digital transformation, it can be hard for people to adjust and to shift mindsets from what they and the industry have always known. It can be a challenge, but seeing change and being able to change a marketplace is rewarding.