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London Market Group delivers update on digitalisation push

London Market Group delivers update on digitalisation push | Insurance Business UK

London Market Group delivers update on digitalisation push

The revised version of the Market Reform Contract (MRC) is scheduled to launch at the end of the first quarter of 2023, according to a new update from the London Market Group’s data council.

Data council chair and Lloyd’s Market Association CEO Sheila Cameron said the revised MRC, now called MRC v3 instead of iMRC, will be released alongside an updated Core Data Record known as CDR v3.2.

In anticipation of this release, Cameron said firms should adopt the new template “by the end of September at the latest,” explaining that the council has agreed to extend the adoption template from three months to six “given the scale of change.”

MRC v3, previously called Intelligent MRC or iMRC, will see the promotion of a single ACORD data standard to enable the extraction of the CDR and strengthen data quality across the London market. LMG held a consultation period for the iMRC around mid-2022, receiving 2,577 comments from 66 organisations. The name change to MRC v3 was made “for simplicity and continuity,” Cameron said. 

The council’s latest release also addressed “market discussion” around the number of data fields in the CDR. Cameron explained in the update that the CDR currently has “about 200 fields” in total and that this number depends on the complexity of the risk involved.

“For example, the most simple Lloyd’s risks only need 61 fields and company market need 53 fields while, on average, a Lloyd’s or mixed market risk will need 125 fields,” she said. “This may seem a lot, but by comparison buying just one thing on Amazon and sending it to your home address requires about 30 fields.”

Concluding the update, LMG urged firms to align their in-house data to global reinsurance & large commercial carrier electronic (GLRC) standards, along with beginning their preparation for MRC v3. Firms were likewise advised to discuss building out an in-house API strategy with their software provider.