Many of you may have seen the announcement of the withdrawal of the Risk Registration scheme earlier this month.

The scheme began in 2001 and over the years the value of both the scheme and the data it captured has been diminishing.

So the time was right to make a call one way or another—re-energise or stop.

We decided to stop. And, as a result, we’ve removed some cost from our market by reducing the reporting burden.

The Risk Registration scheme is a perfect illustration of one of the problems of our market:  we have several legacy processes that have morphed over the years to the point where the original intentions are lost.

Projects where success criteria and business value aren’t well defined up front, and aren’t tracked consistently after project launch, are especially vulnerable to this phenomenon.

When that happens we have to ask ourselves three basic questions: why are we doing this project? What is this product or process for? “What are the economic business benefits?”

That’s the kind of questioning culture we encourage in Market Operations.

Nowhere is that interrogation being applied more rigorously than in the Lloyd’s Information Requirements Project, where we are getting to grips with the data held within the central Lloyd’s systems.

We’ve examined numerous areas and identified reporting items to consolidate. By doing so we’ll eventually generate savings of around £200,000 a year.

We are now looking at the information held by each area and seeing how we can rationalise it and use it more efficiently—but only after we’ve asked ourselves about every report received and produced: why do we do this? What are the benefits?

Our aim is to reduce the reporting burden on managing agents as much as possible. But we also need to refine our data use so that it works harder for the market and costs less.

We have a way to go and we will keep you posted on progress. The demise of risk registration was a start.

Tags: Market processes

This entry was posted by Carl Phillips on Friday, May 29th, 2009 at 2:21 pm and is filed under Market Operations.