The insurance industry is on the brink of a digital revolution. In early 2021, Lloyds announced the required implementation of the Core Data Record (CDR), a bold initiative to streamline and standardise the collection of critical transaction data. Designed to be collected at the point of binding, the CDR propels downstream processes such as premium validation and settlement, claims matching at first notification of loss, tax validation and reporting, as well as regulatory validation and core reporting.
What is the Core Data Record (CDR)?
CDR aims to boost operational efficiency, reduce business costs, and improve customer service. The record, consisting of 37 mandatory and 180 conditional mandatory fields, forms a comprehensive databank that can drive insurance processes more effectively. It is required across both the Lloyd’s and regional markets.
With CDR, the data — whether applicable at a section level or requiring a more detailed entry — can be processed and stored, creating a transparent system where the use of each data element is explicitly stated, fostering accountability, accuracy, and efficacy.
The Challenges and the purpose of CDR
Though the initiative promises to be beneficial, the integration of the CDR comes with its own set of challenges. The transition to this standard necessitates a complete rewrite of back-office data structures — a costly and labour-intensive endeavour. In addition, the success of CDR hinges on the accuracy and comprehensiveness of data collection, posing a challenge to brokers, MGAs, agencies, insurers, and service providers — with the responsibility for ensuring the capture and accurate entry from the client into the Market Reform Contract (MRC v3) and a placement platform, typically being held by the broker.
The CDR’s introduction also marks a significant shift in the insurance landscape from people-centric, manual processes to data-centric, automated ones. Traditional methods of data storage and management, often involving Word documents and email exchanges, are no longer sufficient. This shift underscores the need for technologies that can effectively capture, validate, and update the data required by the CDR standard.
How Novidea can help
Novidea, with its innovative insurance management platform, offers a comprehensive solution to the challenges posed by the advent of the CDR. The Novidea platform, built on Salesforce and equipped with automated workflows and open API architecture, allows for the consolidation and integration of data across front, middle, and back offices. This seamless data accessibility and digitisation enables brokerages to easily become CDR compliant.
Unlike legacy systems, Novidea captures and maps data within the front office of its system, where it can be validated and updated throughout the placement process. This eliminates the need for rekeying as data is smoothly transferred to the middle and back offices. Moreover, Novidea’s low-code environment and drag-and-drop field creation simplifies the transition, thereby reducing the resource and headcount effort, and costs associated with CDR compliance.
Beyond just compliance, Novidea’s data analytics offer micro and macro views of your business, facilitating better decision-making insights. Its fully customisable customer-focused system
, streamlines the entire distribution lifecycle and optimises processes across your business.
As we move towards the upcoming mandate set for Q3 2024, Novidea stands ready to support London Market Brokers in their Blueprint 2.0 requirements. With Novidea, you can navigate the challenges of the CDR, optimise operational efficiency, and scale your business in a future-ready manner. Let Novidea’s insurance distribution platform guide you through the digital revolution of the insurance industry.
In conclusion, Novidea not only allows for easy adaptation to the CDR but also paves the way for meeting future technology requirements as part of the wider Blueprint 2.0. Through digitization and enhanced data management, Novidea propels the insurance industry towards a more efficient, customer-focused future.
Reach out now to see how we can help you.