Lloyd's CEO John Neal says its market must evolve or risk irrelevance
He also mentioned that the insurance industry was facing a talent crisis amid the increasing dominance of the tech sector.
Marsh & McLennan Companies, Inc.’s Rising Professionals’ Global Forum 2019 opened in London, with approximately 700 delegates attending the two-day event to hear from speakers on the central theme for the forum: adaption or extinction.
Lloyd’s of London, the 330-year-old insurance market, faces a similar quandary in terms of its future. Addressing delegates at the forum, Lloyd’s CEO John Neal warned that the market must evolve and evolve fast or risk driving itself into irrelevance.
“We’re facing quite challenging headwinds,” said Neal. “Our products simply aren’t keeping up with the changing landscape of risks and we’re not harnessing all of the new capital that’s knocking on the door.”
He also mentioned that the insurance industry was facing a talent crisis amid the increasing dominance of the tech sector.
“We are not yet seen as the desirable industry for young bright minds to want to work in, and is it any surprise when there are so many challenges in and around our marketplace?” asked Neal. “We need to ensure that inappropriate attitudes are eradicated and given everyone the chance of a rewarding career.”
Related: Here’s how Lloyd’s CEO John Neal plans to modernize insurance
No more business as usual
Drawing inspiration from Amazon, Neal said the digital platform’s highly customer-centric approach and ability to constantly reinvent itself were key ingredients behinds its growth from a startup to the conglomerate it is today.
He thinks Lloyd’s has a good base upon which to launch its digital transformation if it could leverage these attributes combined with its own unique characteristics. He says the building blocks are in place, but “now we have the challenge of unlocking and evolving a 330-year-old platform.”
He envisions an ecosystem that is “altruistic by design” with an open architecture of interconnected platforms and services. Solutions currently being developed include a Lloyd’s risk exchange for less complex risks and a next-generation claims services powered by artificial intelligence. Change will require speed — two things not always associated with Lloyd’s.
“As a sector, our choice is to continue with business as usual and become irrelevant or change and realize and enormous opportunity in the world of risk. We have a once in a generation opportunity to lead the marketplace in delivering innovative services and solutions,” said Neal. “We can do that by leveraging and seizing the spirit of innovation that’s always been at the center of the market and the trusted partnership and relationship between the customer, broker and insurer.”
Related: Changing culture and mindsets in the insurance industry