August 2017
Charles Taylor InsureTech has emerged as the preferred partner in a project that will radically reshape the way cover holders pass data to London market carriers, The Insurance Insider understands.
Charles Taylor has fended off rival bids from IBM, Accenture, Verisk and Xchanging to take on the delegated authority project, a crucial part of the London market modernisation programme.
The tender relates to the data submission, access and transformation component of the delegated authority programme.
The insurance consultancy is understood to be the last vendor remaining on the shortlist, with the decision to appoint the contract to Charles Taylor expected to be finalised at a meeting of the Target Operating Model (Tom) steering board on 20 August.
Charles Taylor will deploy a software system called Tide, which was developed by Otak, a start-up that the consultancy acquired in February. The software aims to supply brokers and insurers with up-to-date premium and claims data, while cutting operating costs.
According to details on the Charles Taylor InsureTech website, Tide will use machine learning to read the documents submitted by MGAs, rather than data from spreadsheets being manually extracted.
Delegated authority underwriting is a vital element of the London market. Lloyd’s recognises 3,821 MGAs as coverholders, according to the market’s website.
But the level of paperwork associated with becoming an accredited coverholder presents a challenge to MGAs around the world.
London market coverholders face numerous complex and often duplicated data requests from carriers. MGAs must send both premium and claims data back to London, with different insurers requesting information in different ways.
If final approval is given by the Tom steering committee, the Tide platform will become a central repository for delegated authority data.
The delegated authority reform project is being spearheaded by Beazley chief operating officer Ian Fantozzi.
The delegated authority workstream of the Tom has already introduced single audits of coverholders by London market carriers. Formerly, MGAs faced audits by each carrier they worked with.
A spokesperson for the Tom said: “The selection process for a vendor for the delegated authority submission, access and transformation project is in its final stage but not yet complete. There is further work to do on contract negotiations and internal reviews and approvals, so no final contract has been signed.”
Charles Taylor declined to comment.
