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Technology

Driving digital placement

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Lloyd’s is modernising its systems and processes to better serve customers and drive sustainable growth, as Marc Bloom explains to Sequel’s Tim Rayner.

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Lloyd’s is evolving to become a smarter, faster and more cost-effective place to do business. To protect one of its most important channels, Delegated Authorities, Lloyd’s is modernising its systems and processes and delivering technology improvements that will better serve customers and drive sustainable growth.

One of the latest systems doing just that is Lloyd’s Coverholder Workbench. Marc Bloom, COO of Lloyd’s Americas and business owner (Coverholder Workbench) explains to Tim Rayner, business development director at Sequel Business Solutions, the key deliverables and benefits of Coverholder Workbench.

What is Coverholder Workbench?

Coverholder Workbench is a live digital platform that supports the coverholder placement lifecycle. It includes the functionality for submission, rating and quoting, automated document generation, cash handling – which includes invoicing and crucially, Lloyd’s reporting. In partnership with Sequel, it has been designed from the ground up to work in harmony with the Lloyd’s market and is compliant with the Lloyd’s bordereaux management system Delegated Data Manager (formerly known as DA SATS).

Why is Lloyd’s offering Coverholder Workbench to coverholders?

Quite simply, we have designed and built Workbench to provide coverholders the opportunity to work seamlessly with the Lloyd’s market, satisfying all of Lloyd’s reporting requirements and as a cost-effective solution to support them. It is a purpose-built Lloyd’s system that can be used by new coverholders to market their products faster or existing coverholders in need of a better and more efficient system.

Who can use Coverholder Workbench?

The system is available for all existing or new coverholders, including brokers who are acting as coverholders or managing agents’ services companies that are acting as coverholders. Providing the organisation has (or will have) a registered Lloyd’s binder, we can onboard them to the system and have them writing business and reporting to their Lloyd’s broker or managing agent within a matter of weeks.

What are the top three benefits for coverholders who sign up to use Coverholder Workbench?

Firstly, I would say Workbench provides coverholders with the assurance they are using a system that is fully compliant and will satisfy a Lloyd’s third-party audit.

Secondly, it provides for an efficient time to market with an economical, fully compliant operating system for quoting, submission, binding, automatic document production, reporting and cash handling.

Thirdly, it provides increased operational efficiencies as there is no need for re-key across multiple systems – the structured data is entered once at the front end and then pulled through to where it needs to be for any required downstream actions.

Can Coverholder Workbench capture tax requirements?

It certainly can. We have designed the system so that any single tax regime risk locations are automatically captured and, if necessary, reported on the written and paid bordereaux.

For our US coverholders, Coverholder Workbench will support the capture and reporting of all the necessary surplus lines taxes and fees. We will also be maintaining this information to ensure regulatory compliance.

How much does it cost to use Coverholder Workbench and who must pay to use it?

The base cost is surprisingly low. Additional costs will vary depending on the number of binder products or lines of business the coverholder has configured. The number of users and the take up of system functionality are also contributing factors. Detailed commercials will be discussed on a 1:1 basis with the prospective client. In respect of who pays, we have a payment structure in place which sees the lead managing agent on the binder paying for the annual licence fee.

What are the benefits for managing agents if their coverholders are using Coverholder Workbench?

The managing agent is given the assurance that the coverholder is quoting and binding business within the terms and conditions of the binder or slip. Coverholder Workbench has delegated authority controls that can be turned up and down as required by the underwriter. As an example, we can set Coverholder Workbench up for a coverholder with a prior submit binder, whereby 100% of quotes are referred to the underwriter for review before being bound. Conversely, we can set the system up whereby the coverholder has full control of the pen and can quote and bind with no underwriter oversight until the binder aggregated limit is reached.

Is Coverholder Workbench already being used by coverholders?

Indeed, it is. We have live coverholders in the UK benefitting from using the system and a pipeline of UK and US surplus lines or excess and surplus coverholders preparing to onboard.

Is it likely that Coverholder Workbench will become mandated?

Lloyd’s has no immediate plans to mandate Coverholder Workbench. It sits firmly in the Delegated Authority Ecosystem as an optional service for risk placement. Soon, users will benefit from APIs connecting Coverholder Workbench to the future Delegated Contract Manager, BAR as we know it today, and the Delegated Data Manager, which Lloyd’s has recently announced is to be mandated for reporting delegated business.

How do I find out more about Coverholder Workbench?

The quickest way to find out more is to email our dedicated mailbox: coverholderworkbench@lloyds.com Once you’ve got in touch, one of the team will respond to set up an initial discussion.

Marc Bloom, chief operating officer for the Americas at Lloyd’s, was in conversation with Tim Rayner, business development director at Sequel Business Solutions.

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