LIMOSS | iMRC Consultation

What is the iMRC?

The iMRC is an evolution of the MRC and introduces an updated layout to enable data extraction by market participants and placement platforms.

The iMRC will enable accurate, standardised data to flow through the entire transaction lifecycle with minimal human intervention. It will be fundamental to the success of our transformation for open market placement.

While the launch of the iMRC does not mean there will be a move to fully digital contracts at this time, it is an exciting first step on the journey.

The LMG’s Data Council is in full support of the introduction of the iMRC as one adoption path towards computable contracts.

What are the benefits of the iMRC?

The iMRC will support a wide range of transformational benefits in distribution, customer experience, underwriting and back-office processing – as well as ancillary benefits in risk, compliance and other use cases – by allowing trading to take place on the basis of a digital exchange of data, an electronic binding of the risk and a fully digital contract lifecycle. A full list of benefits is below:

More efficient placement processing: Capturing a minimum amount of structured data at point of bind will help mitigate the need for participants to re-key information later down the line.
Improved customer outcomes: Having clean and accurate structured data will help reduce the number of errors, and therefore the number of queries, raised. A large number of contracts currently contain errors, meaning delays and inconsistency at the time of claims – and ultimately, clients paying for the high manual costs of transacting business in the London Market.
Reducing manual entry: Extracting data from contracts is currently labour intensive and therefore expensive and time-consuming. Enabling contracts to be accurately read and understood by machines will enable further benefits of automation.
Downstream benefits for claims: Access to structured customer and risk data will help enable the intelligent triaging of claims, limit the need for manual oversight, and reduce both the cost and delays in claims handling through a streamlined and transparent process.

What’s changed with the iMRC?

The iMRC will play a key role in embedding data standards and strengthening data quality. The updated guidance supports the creation of iMRCs which will enable easier data extraction by market participants and placement platforms. It will also ensure the data submitted for processing is consistent throughout the end-to-end journey.

The launch of the iMRC will ensure that all the relevant data related to the risk is clearly represented in the legally binding contract, which puts the ultimate record of the policy in the hands of the customer and will help align data across all processes.

Are all the CDR fields included in the iMRC?

The iMRC includes the primary CDR fields that are required at the point of bind (see “Stage of Availability” in the CDR here).

However, primary CDR fields that are required prior to settlement (not at the point of bind) are currently not included in the iMRC. It is estimated that only 20% of contracts are subject to this type of information, much of which appears in the Schedule of Values (e.g. vessel tonnage).

Any CDR fields that can be derived from other fields (also referred to as B fields) are also not included in the iMRC. One exception is the Risk Code, which may continue to be included within the iMRC as the market transitions towards digital services. Once the digital services are live, it is anticipated that Risk Codes will no longer be required as they will be derived from data collected within the CDR.

What is the consultation process?

From 5th July, the LMG’s Data Council will be running a consultation process, supported by Lloyd’s, which will enable the market to give feedback on the proposed changes to the MRC.

Alongside the consultation the LMG’s Data Council will be conducting a full legal and regulatory review of the revisions, to ensure the amendments that have been made do not compromise any legal or regulatory requirements.

We strongly encourage you to ensure your company provides input into the consultation on the proposed changes to the MRC.
For any questions on the iMRC visit the LMG website or email imrc@lloyds.com.

iMRC Consultation - FAQ