Lloyd’s chief executive John Neal has unveiled his blueprint for the future of Lloyd’s, emphasising the need to improve underwriting and claims efficiency, reduce costs and create an environment supporting innovation.
Neal, who assumed the top job at Lloyd’s almost six months ago, said “a dynamic risk environment combined with rapid advancements in technology have fundamentally changed the world”.
Lloyd’s has been consulting with market participants to figure out how to respond to those pressures.
The strategy unveiled today is based around six ideas for Lloyd’s future:
- A platform for complex risk that makes doing business easier and enables efficient digital placement of the most difficult-to-cover risks.
- Lloyd’s Risk Exchange through which less complex risks can be placed in minutes at a fraction of today’s costs.
- Flexible capital that can simply and effectively access a diverse set of insurance risks on the Lloyd’s platform.
- A Syndicate-in-a-Box, which offers a streamlined opportunity for innovators to bring new products and business into the market.
- A next generation claims service that improves customer experience and increases trust in the market by speeding up claims payments.
- An ecosystem of services that helps all market participants develop new business and provide outstanding service to their customers.
Neal said: “The proposals are focused on delivering higher quality risk protection for the market’s customers. They also offer ways to simplify access to the global insurance market, together with lowering costs of doing business at Lloyd’s.”
Work on building and delivering prototypes will begin from October 2019, with some becoming operational in early 2020.
Aon chief executive Greg Case said: “Lloyd’s has identified promising ideas to develop innovative solutions that will allow the insurance sector to move more quickly, at far less cost and in a way that helps all involved address today’s greatest risks.”
Hiscox chief executive Bronek Masojada said: “These initiatives remind us of Lloyd’s centrality to the global insurance market and its determination to remain central to it as the world evolves. We look forward to working with all our Lloyd’s colleagues to bring these ideas to realisation.”