The London Market Group (LMG) has released its blueprint for the London market's Target Operating Model (TOM), which defines its overall modernisation programme.
This includes outlines of each individual solution being developed for TOM, the possible deliveries, and their cost and benefits.
The blueprint was reviewed by the London Market TOM steering board on July 11.
“Central Services Refresh Programme has implemented its first phase which allows premiums to be submitted electronically, for delegated authority business centralised audits are underway and we have made progress on enabling data to move around the system seamlessly. We also have clear visibility on what the next steps on all of these will be.
“The Blueprint helps us to understand the architecture of the overall programme, review current initiatives to confirm that their priority status is still valid and outlines a set of further solutions that gives the market choices,” said Khoury-Haq.
The blueprint has been developed so solutions are modular, the LMG said, so the market can decide what to implement and over what time frame, balancing costs against benefits.
“The market will realise significant benefits even if it only implements the four priority initiatives currently in progress. If the market decides to proceed with the other solutions defined in the Blueprint, it can select which ones are most relevant at that time,” said Khoury-Haq.
“We are publishing a set of outputs on the isupportTom website so that underwriters and brokers can have access to the information they need. Each solution contains costs and benefits – and the central cost would be £270m.
“This includes the full costs of the software for PPL, which were budgeted outside the TOM when we first developed our estimates in 2015. If you remove that element, the total cost is below the original £250m,” she added.