Lloyd's reveals plans to become most advanced insurance marketplace in the world
Today Lloyd’s launched the Future at Lloyd’s Blueprint One which describes Lloyd’s strategy to build the most advanced insurance marketplace in the world. The blueprint includes details of the initiatives that will be delivered for customers and market participants during 2020.
The publication of Blueprint One follows the unveiling of the Future at Lloyd’s prospectus on 1 May 2019, and marks the first in a series of updates which will be issued at least annually. This first blueprint sets out six ideas of improved ways of working, underpinned by a heightened focus on digital, data and technology to deliver greater benefits to customers.
The document describes the solutions and, importantly, the way in which the ambition set out in the Future at Lloyd’s will be delivered by strong transition and execution planning, followed by a series of phased deliveries.
Phase I will be delivered during 2020 and will include early quick wins, including the launch of an electronic risk exchange which could, over time, process as much as 40% of Lloyd’s risks. In addition, Lloyd’s will pilot a solution that automatically triages claims to speed up settlement and introduce simplified onboarding for Lloyd’s coverholders.
Lloyd’s also today announced that Munich Re will launch the first new “Syndicate in a Box” through its well-established Lloyd’s vehicle Munich Re Syndicate Limited. The Munich Re Innovation Syndicate will begin underwriting on 1 January 2020 with no physical presence in Lloyd’s. It will underwrite a range of innovative lines of business such as renewable energy and parametric insurance for weather risks.
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. 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.John Neal, Lloyd’s CEO
The Lloyd’s ecosystem will be the global marketplace to buy and sell insurance, offering a one-stop shop of high-quality, cost-efficient products and services to cover even the most complex risk needs. It will comprise six integrated solutions that together provide exceptional value for customers and market participants:
- Complex risk platform: A platform that enables risks to be bought and placed using standardised data. Initially, we will invest in a next generation of PPL to deliver ‘document-plus-data’ platform with an improved user experience and a core data record. We will simultaneously prototype and develop a ‘data-first’ capability that will deliver a significantly improved broker, customer and underwriter experience, a more efficient and transparent claims service, and optimised support processes and insights. Over time, we will switch over to a data-first platform, securing Lloyd’s reputation as the go-to global marketplace for complex risks.
- Lloyd’s Risk Exchange: An exchange for underwriting relatively noncomplex, high volume, low-value risks that enables policies to be created and bought digitally, whilst providing brokers and coverholders with an easyto-use, end-to-end way of accessing Lloyd’s products and services. Risks will be automatically rated by algorithms to speed up placement and reduce costs
- Claims solution: A solution that transforms the claims process by automating simple claims, using straight-through processing, resolving standard claims handling on behalf of the market and empowering lead underwriters to handle the most complex claims. This will deliver a better experience, make it easier for customers to track their claims and speed up payments.
- Capital solution: A solution that offers capital providers more options to attach to risk more flexibly, for the benefit of all participants. It will make the market more attractive and accessible to all traditional and new forms of capital (including financial investors), while maintaining strong underwriting discipline. Managing agents will be able to offer new capital products as well as optimise their capital.
- Syndicate-in-a-box: A new way to bring innovative, accretive, and profitable business into the market for a set period, without the need for a physical presence in Lloyd’s, but subject to the same performance and regulatory controls as all new market entrants. Syndicate in a box will provide a testing ground for improvements, including the way we attract and onboard.
- Services hub: A set of high-quality value-add services to support the market’s business, including access to Lloyd’s data, insights and analytics, business support functions and product innovation accelerators, accessed via an online portal. The Corporation will ensure quality by defining a set of common standards which all participants will have to meet.
Lloyd’s is focused on leadership across three key fronts: improving the market’s performance; delivering the Future at Lloyd’s strategy; and tackling unacceptable behaviour in the Lloyd’s market with robust actions to build a diverse and inclusive market in which everyone is respected and valued.
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Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world.
The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally.
It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale.
And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.
Lloyd’s began with a few courageous entrepreneurs in a coffeeshop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.