The human dilemma! Each syndicate prides itself on its superior data management and analytics capabilities and implied competitive advantage. On the other hand-
"Ensuring that participants in the Lloyd’s market have consistent sources of risk assessment data is one of the objectives of the London Market Group’s Target Operating Model (TOM), "
Justin Davies VP Xceedance June 2017
Justin makes a good case that the TOM initiative is vital and that syndicates should seek to gain competitive advantage by adding their own "secret sauce"
"If, indeed, they do have superior ways of adding value to the data that results in outstanding underwriting, they should be only too happy to leverage their unique competitive differentiator. "
Our own experience is that many syndicates make decisions on incomplete data and are vulnerable to misunderstanding risk. They may not be immune to the Lake Wobegon effect
This is Illusory Superiority (aka the Lake Wobegon Effect, where “all the women are strong, all the men are good looking, and all the children are above average”).
On the face of it, uniform data standards might level the playing field, but there is absolutely nothing to stop smart syndicates from augmenting the cleansed data post-receipt, by adding their own “secret sauce.” If, indeed, they do have superior ways of adding value to the data that results in outstanding underwriting, they should be only too happy to leverage their unique competitive differentiator. Also, if syndicates are concerned about service standards dropping, then they can get involved in the process by highlighting their requirements and ensuring a higher bar is set for turnaround times and accuracy SLAs. Lloyd’s is a unique marketplace, full of highly talented people and organisations but it does have a few unhelpful quirks — inefficiencies around data being one of them