Lloyd’s launches 2021 transformation plan with the second phase of its ambitious Future at Lloyd’s strategy
Today Lloyd’s published its second blueprint which sets out the delivery plan for the next phase of its strategy to build the most advanced insurance marketplace in the world.
Blueprint Two is a compelling two-year programme that brings to life the ambitions published in Blueprint One (September 2019), with tangible solutions that will radically shift the market to a digital ecosystem, powered by data and technology – ultimately delivering better value at a lower cost for its customers.
The comprehensive programme and priorities detailed in Blueprint Two will profoundly transform the way in which customers get covered, right though to recovering from loss; this will be achieved by the redesign of the entire insurance lifecycle process - from placement through to accounting, payment, endorsements, claims, renewals and reporting – offering a seamless digital service for all Lloyd’s customers and stakeholders globally.
Blueprint Two represents the second phase of Lloyd’s ambitious Future at Lloyd’s strategy, following a year of substantial progress* laying the foundations to support the next phase of transformation. The plan builds on the goals** set out in Blueprint One, detailing the digital-led change and execution plan to build the solutions over the next two years, transforming the way in which Lloyd’s operates.
The improvements outlined in Blueprint Two are a product of extensive market research, feedback and collaboration. They aim to deliver significant operational efficiencies, making it simpler and more efficient for market participants to trade, with an estimated aggregate reduction of £800m in operating costs for brokers, underwriters and business partners. This will enable the market to give more focus to value adding activities, such as product development, innovation and risk mitigation to improve customer outcomes.
Blueprint Two sets out to achieve:
• Approved and clear data standards that will support the next generation of placement platforms and solutions at Lloyd’s.
• A new Lloyd’s marketplace gateway and super-fast processing capability that will allow cover to be evidenced and issued in minutes and simultaneously create technical accounting records.
• Automated claims recognition, routing and orchestration that will facilitate faster claims payments.
Bruce Carnegie-Brown, Chairman of Lloyd’s said: “The pandemic has demonstrated that Lloyd’s can adapt in a fast-changing environment and this has only increased our hunger to get on and make further change happen. As a market, we have the appetite and energy to execute on our plans for the future and in doing so, we have the makings of real, transformational change. Blueprint Two is our roadmap to get there and I’m confident that together we can make it happen.”
Jen Rigby, Chief Operating Officer and Executive Sponsor of Future at Lloyd’s, said: “The plans we set out in Blueprint Two will deliver truly revolutionary change for the market, ensuring the future of the Lloyd’s market is digital from start to finish, with data at its core. We’re now bringing to life the thinking in Blueprint One by practically showing how our future digital ecosystem will improve risk placement in the market and help customers recover from loss. It’s been an incredible journey so far and I’m excited about bringing these solutions to life over the next two years.”
*Blueprint One achievements:
• Reducing the cost of doing business at Lloyd’s:
- Reduced bureaucracy for claims processing for binding authorities
- Reduced the need for re-keying data as result of new placement APIs that allow enable to data to flow between carriers and brokers
- Worked extensively with the LMA and Managing Agents on potential Lead Follow standards
• Simplifying the process of accessing products and services at Lloyd’s:
- Built submission and quote APIs that allow data to flow between carriers and brokers.
- Streamlined the claims process, taking an average of three days off transaction times by reducing the number of people who need to be involved in complex claims
- Agreed and finalised Lloyd’s stake in the London market’s electronic placing platform (PPL)
• Offering even better solutions for our customers:
- Approved four new syndicates in a box: Carbon syndicate 4747, Munich Re innovation syndicate, Ascot Parsyl Syndicate 1796, Asta Picnic Syndicate 2460
- Approved a new syndicate – Ki Ki, which is a fully digital algorithmically driven ‘follow only’ syndicate created in collaboration with Brit and Google Cloud
- Launched a pilot for Small Claims Auto Settlement (SACS) to reduce administration and speed up claims
• Building an inclusive and innovative culture that attracts talented people to Lloyd’s:
- Continue to work with the market to develop the Virtual Room to alleviate challenges around remote working
- Launched a new culture dashboard and have set gender targets for the market
- Established Lloyd’s Culture Advisory Group
** Offering better solutions to the risks faced by customers: delivering better products and services to customers and capital providers, simplifying was of working by being more efficient and reducing costs and building an inclusive culture where everyone feels valued.
2. The report is a collaboration between the Corporation of Lloyd’s, carriers, brokers, market associations, customers and suppliers
3. More news and information available from lloyds.com
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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.