Lloyd's positions itself for the future
Lloyd's of London has revealed the most significant changes to its marketplace in its 333-year history.
Lloyd’s of London has set its sights on becoming the most advanced insurance marketplace in the world.
Its pen-to-paper plan, “Blueprint One,” which was released last week, unveils the most significant changes to the Lloyd’s marketplace in its 333-year history.
The new ecosystem outlined in the plan will create a one-stop-shop to buy and sell insurance, with the first changes taking place immediately; additional changes will be rolled out over the next three years. They include improved ways of operating, and a greater focus on digital, data and technology.
“The extensive feedback we have received in progressing the blueprint has confirmed the preeminent place Lloyd’s holds globally in insurance and reinsurance. The plans unveiled today create execution certainty through phased delivery,” Lloyd’s CEO John Neal said in a statement last week. “The support we have enjoyed to date has been essential to delivering Blueprint One, and we are seeking the renewed commitment of all market participants to partner with us to achieve our vision to build the most advanced insurance marketplace in the world.”
The blueprint’s publication comes months after Lloyd’s revealed its “Future at Lloyd’s” prospectus, which proposed ways Lloyd’s could improve and deliver better results to the insurance community.
Creating the future
Lloyd’s new ecosystem will consist of six integrated solutions that will be delivered in phases. Together, the solutions are aimed to achieve the goals set by the prospectus to provide greater benefits and better experience to customers and market participants. The first phase will be implemented in 2020 and will include the launch of an electronic risk exchange, which is expected to process as much as 40% of Lloyd’s risks over time.
The six solutions are:
Phase I. Complex risk platform: The platform will allow risks to be bought and placed using standardized data, while simultaneously developing a “data-first” capability to improve the broker, customer, and underwriter experience; deliver a more efficient and transparent claims service; and optimize support processes and insights. Ultimately, Lloyd’s goal is to transition to a fully “data-first” platform over time.
Phase II. Lloyd’s Risk Exchange: This underwriting exchange will permit policies to be created and bought digitally for relatively non-complex and high-volume, low-value risks, which are rated by algorithms. The solution will offer a simple way for brokers and coverholders to access Lloyd’s suite of products and services.
Phase III. Claims solution: This solution will automate simple claims using straight-through processing and resolve those claims; thus, freeing up underwriters to concentrate on more complex claims. It will also speed up payments and make it simpler for customers to track claims status.
Phase IV. Capital solution: The solution is designed to make the market more attractive and accessible to all traditional and new forms of capital and offer capital providers more options to attach to risk more flexibly.
Phase V. Syndicate-in-a-box: Syndicate-in-a-box is a new way to bring business into the market for a set period without the need for a physical presence in Lloyd’s.
Phase VI. Services hub: An online portal will offer a set of high-quality, value-add services, including data, analytics, and business support functions, that will support the market’s business.
Learn more about the Future of Lloyd’s on Lloyd’s of London’s website.
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