Technology report:
London looks for ways to increase use of standards

In an effort to increase the use of electronic data transfer, the Group of Six (G6) of Lloyd's Managing Agents has agreed to a new process using ACORD data standards to allow the electronic transfer of risk-related data and documents between group members and four leading brokers in the Lloyd's market.  

The members of the G6 (Amlin, Beazley, Catlin, Hiscox, Kiln and Wellington) will be working with the Lloyd's Market Association (LMA) and others in Lloyd's to inform all market members.  The brokers currently involved are Aon, Benfield, Marsh and Willis. 

The new standard is being piloted by G6, Aon and Benfield. The process utilizes each participant's electronic gateway and will support not replace the box process.  The group agreed to develop an e-commerce system using ACORD standards rather than developing an industry platform, allowing firms to use their own solutions with the standards.

The initiative is one of a number being pursued by the G6 to improve the efficiency and effectiveness of the market, and aims to reduce manual processing and bring greater clarity to the placement of risk.  The potential exists to extend electronic transfer to other market processes, including accounting settlement and claims.

This follows the announcement by Lloyd's earlier this year that it was closing the Kinnect electronic trading platform. 

Interim Kinnect chairman Michael Dawson had said the changing nature of the technological landscape helped lead to the limited adoption of the platform and that a market-sponsored system was no longer required at Lloyd's.

The G6 was formed in January 2005 to identify practical opportunities to streamline and improve Lloyd's market processes.