Lloyd’s ready to deliver first phase of transformation, with major investment in PPL and first risk exchange pilot
Lloyd’s has today published its execution plans for the first phase of the Future at Lloyd’s in an online update to Blueprint One. The Blueprint One: Update includes confirmation of Lloyd’s 2020 priorities as well as detailed plans for Phase 1 of the Future at Lloyd’s, which begins in March.
As part of those plans, Lloyd’s also confirmed that the Corporation will take a 40% stake in the London Market's electronic placing platform (PPL), which will form a key component of the new complex risk platform. The update also confirms that the first risk exchange pilot will be trialled in 2020, connecting broker and insurer e-trading portals.
Recognising the complexities of delivering its ambitious programme, Lloyd’s has spent the transition period working with stakeholders to prioritise and plan the workstreams that create the foundations for The Future at Lloyd’s, whilst in parallel delivering early value to the market. The transition phase has now completed with the programme set on a firm footing to move into the first phase of delivery. Lloyd’s has also secured the funding for Phase 1 of the programme during transition, as well as setting up the governance structure and establishing the delivery teams.
Lloyd’s confirmed its commitment to prioritising delivery of the solutions that offer the most benefit to key stakeholders and customers and that drive tangible value in 2020. These include the investment in and development of the next generation PPL, as part of the complex risk platform; a new digital solution for Coverholder business as part of the Lloyd’s risk exchange that will make it quicker and easier for capital to attach to risk; and accelerated process improvements to claims, including piloting automated settlement.
Lloyd’s will also prioritise three foundational initiatives in 2020 that will create the essential infrastructure and lay the groundwork for the Future at Lloyd’s ecosystem. These are data and technology architecture, lead/follow (modern syndication of risk), and middle and back office transformation.
In parallel to the 2020 priorities, Lloyd’s will continue to progress the ideas laid out in Blueprint One for delivery in 2021. These include a prototype of the “data-first” version of the complex risk platform, new capital investment opportunities, including through the syndicate-in-a-box framework, and a commitment to ongoing cultural change.
Several of these initiatives are already delivering results. For example, in January Lloyd’s confirmed that Marine Hull and International Casualty Binders classes of business will be taking part in the first lead/follow (modern syndication of risk) pilot which will commence in early Q2, led by the LMA. Also in January, Lloyd’s specialty insurer Brit Ltd. Launched its “Sussex Specialty Insurance Fund”, which offers alternative capital, such as Insurance Linked Securities (ILS) investors, improved access to the Lloyd’s market.
In response to high demand from the market for ways to get involved, Lloyd’s has also launched an online talent portal that provides individuals with details of full and part-time opportunities as part of Lloyd’s digital transformation.
Lloyd’s Chief Operating Officer and Executive Sponsor of the Future at Lloyd’s, Jennifer Rigby, said: “During transition we have been incredibly busy setting up the programme of activities, mobilising workstreams and securing the finances to deliver on our vision. I am delighted to reaffirm our commitment to building on the investments already made by the market, together with maintaining the ambition we set out with to create the world’s most advanced insurance marketplace.”
Lloyd’s Chief Executive Officer, John Neal, added: “I am thrilled with the progress we have made during transition. We are now ready to start building the Future at Lloyd’s, having achieved three major objectives - securing finance, setting the governance structure and detailing the plan for the next 12 months and beyond. I am excited about the opportunities The Future at Lloyd’s offers to our market, and grateful for its support as we move the ideas from strategy into reality.”
Bronek Masojada, PPL Board Chair, CEO of Hiscox, and member of the Future at Lloyd's Global Advisory Committee added: "The investment by Lloyd's is a tangible demonstration of their commitment to building on the success that PPL has achieved so far. With over 70% of risks now being bound electronically we clearly have critical mass and this investment will be used to enhance and industrialise the platform we have today as well as building the next generation of PPL."