Breaking the “Groundhog Day” Curse
In this month’s Global Broker and Underwriter Magazine, Lloyd’s CEO Richard Ward, talks about the market’s need to “get it’s act together” to provide better service to its clients, or risk them going elsewhere. He emphasises the need for the market to embrace the Lloyd’s Exchange initiative and says that, “To some respects the market is like a Groundhog Day as nothing has materially changed.”
The challenge of the Exchange is to get more information flowing between broker and underwriter. This initiative is at the exact same point where others have failed and we have heard the same rallying cry from previous advocates of change. But how can you break through to the next level and actually get meaningful volumes of information being transmitted between trading partners?
The answer is certainly not to ask the brokers to work harder or spend more money to make it happen. They will merely smile sweetly (again) and carry on with their own priorities.
So, how do you break the cycle of failure? – Change the path of least resistance.
Today, brokers often use Word to generate the documents they need to negotiate a client’s risk. In doing so, they trust their support staff to be on top of the latest market reform initiatives and their company’s rules. And then, most of the really useful information ends up locked inside these Word documents.
There is a growing recognition, however, that by using specialist document automation technology such as Exari, brokers can improve turn-around times (documents produced in 80% less time) while ensuring greater accuracy and built-in compliance. Our broker clients tell us that it’s easier to use a structured mechanism for building their documents than relying upon the free form use of word processing.
Using Exari, documents are “assembled” from the relevant sections, clauses, paragraphs and words that are applicable to the risk class. During that process, data is automatically being gathered in the background. It is that data that can be transformed into a message and sent to underwriters via the Exchange.
- Brokers get better documents faster
- Underwriters have to do less checking since there are fewer elements that can go wrong
- Clients get better service
- Exchange builds up its message traffic
If you use a document assembly solution like Exari to structure the creation of your documents at the beginning of the placement process you can break the Groundhog Day curse.
This post was guest authored by Martin Kett, Exari’s VP of Insurance Client Development.