Ihave been engaged in various projects on the London Market for decades and I have been closely following the significant effort invested in modernising its operating model through initiatives like Blueprint Two over the last several years. You can easily see that technology discussions often focus on syndicate platforms and broker connectivity, when it is Delegated Authority (DA) that remains a powerful engine for global distribution and operational scalability. This model allows carriers to extend their reach through specialized networks of coverholders, Managing General Agents (MGAs), and Third-Party Administrators (TPAs). And yet, despite its importance, the DA ecosystem is only partially integrated into digital transformation and continues to rely on legacy processes.

The Data Challenge: Bordereaux (BDX)

One of the primary hurdles in DA operations is the continued reliance on bordereaux reporting, where coverholders submit files containing policy, premium, and claims data. There is no doubt that the Bordereaux Data Exchange (BDX) platform has improved standardization, but the model remains based on periodic batch reporting rather than continuous flow.

Let’s look closer at the several critical pain points faced by this system:

• Inconsistent Formats: even with the 5.2 standard, formats remain inconsistent, requiring extensive manual mapping and error correction.
• The "Monster" Standard: the 5.2 format from 2019 has become increasingly bloated as new regulatory fields are added, yet there is a perceived lack of adequate governance to ensure market-wide compliance.
• Reporting Delays: there are persistent delays in premium and claims reporting - issues that modern vendor solutions should ideally catch.
• Uncertain Solution Efficacy: even with the platforms such as VIPR and BDX 360 available, there is no clear market consensus on how effectively they perform their tasks.

As a result, insurers often receive portfolio information weeks or months after decisions are made and this in turn, obviously limits their ability to monitor performance or react to emerging trends.

Automation Within Syndicates is Not Enough

This lack of integration means that even if a syndicate has modern internal platforms, the data feeding them remains fragmented.

A Connected Delegated Ecosystem

The next stage of modernization requires treating the delegated ecosystem as a fully integrated component of the digital architecture. There are key developments that need to happen if we hope to achieve this:

1. API-Driven Connectivity: moving away from periodic submissions toward continuous, incremental data exchange as transactions occur.
2. New Standards and Governance: it may be time for a new data standard coupled with appropriate governance that forces brokers and coverholders to provide data in the expected format.
3. Data Quality Centralization: a significant leap forward - currently viewed as a "dream" - would be the creation of a central repository for checking data quality, connected directly to the systems of brokers, coverholders, and carriers.
4. Real-Time Visibility: improved analytics would allow insurers near-real-time visibility into delegated portfolios, enhancing oversight and proactive underwriting.

Unlocking the Full Potential of Delegated Authority

For all of us, actively engaged in the London Market, there is no doubt that Delegated Authority is one of the LM’s greatest strengths, supporting global reach and specialized expertise. However, the full potential of automation will only be realized when the entire value chain - from syndicates to coverholders and TPAs - operates within a connected digital environment. By bringing DA fully into modernization efforts and addressing the governance of data standards, the market can improve efficiency, foster innovation, and maintain its leading global position.

Let’s put all of this aside for a moment and make a bold suggestion. Perhaps it’s time for a new standard, which would include proper governance making it unavoidable for brokers and coverholders to send the data in the expected format. An ideal scenario? Full digitalization of BDX and perhaps even a central repository monitoring data quality, which would be connected to the systems used by brokers, coverholders and carriers.

Michał Stanik, an Acini Co-Founder combines a software engineering background with 14 years of expertise across the global insurance and financial sectors, with special emphasis on the London Market. Throughout his career he has spearheaded high-stakes projects ranging from complex life insurance portals to international claim platform migrations. Beyond the world of Lloyd’s and technical migration strategies, Michał is an aviation and travel enthusiast who is always on the lookout for a little extra time to play computer games.

Kuba Matraj, the Lead of Global Insurance & Technology Integration at Acini, possesses over a decade of specialized expertise in the London Market. A certified professional holding the Certificate in London Market Insurance, Kuba navigates complex regulatory frameworks to drive digital transformation through initiatives like Blueprint Two. His background spans technical accounting and operational resilience, leading high-impact projects from Quote and Bind applications to Salesforce implementations. Outside of work, Kuba enjoys wandering along quiet creeks with a fishing rod.