The six bold new ideas that reimagine what the future at Lloyd’s might look like will revolutionise the way Lloyd’s serves its customers.
This was the central message delivered by Bruce Carnegie-Brown, Lloyd’s Chairman, at the New York City Dinner this week, as he challenged the market to turn vision into reality.
The strategy will be “powered by technology designed to create the most customer-centric digital insurance platform in the world”, explained Bruce, who was speaking in the new World Trade Center to more than a hundred figures from the US business and financial community.
“No one else can rival the Lloyd’s ecosystem”, he said, as he went on to explain the vision in more detail, including the concept of dual platforms for complex and non-complex risks. “This is new for Lloyd’s, but dual platforms exist today in other financial markets as does the technology to support them.”
The Lloyd’s prospectus also proposes greater flexibility around capital attaching to risk at Lloyd’s. “Today, capital attaches to the Lloyd’s platform in many ways, but the prospectus challenges us to simplify this process and make it more flexible so that we become more attractive to capital providers.”
Bruce also highlighted the concept of a “syndicate-in-a-box”, designed to accelerate access to the market for underwriters seeking to take specific risks for a defined period with very specific series of performance parameters.
On claims, Bruce said, “our claims-paying record is strong, but we need to shorten the time it takes to get claims payments into the hands of our policyholders”. He said the commercial insurance sector could learn lots from “Personal Lines” insurers in this regard.
Supporting all these changes, he noted, is an improved Lloyd’s ecosystem in which additional services will be provided more efficiently and more cost-effectively, where Lloyd’s facilitates innovation and makes improved data available to enhance underwriting decisions.
Bruce also highlighted the steps Lloyd’s has taken to ensure success, which are aimed at securing the full support of stakeholders across the market and safeguarding a culture of diversity and inclusion.
He pointed out how the Corporation has set out wide-ranging actions to help create a safe and inclusive working environment. Meanwhile, “to ensure that we are learning from the best talent in our industry” Lloyd’s has created an advisory committee comprised of many of the most senior people in our industry.
The hardest part of any project is execution, he said, whilst highlighting three examples of effective execution in 2018, which give him confidence that Lloyd’s will deliver on the strategy.
“I take comfort from three things we executed well at Lloyd’s in 2018 – the programme to set up a Brussels subsidiary in anticipation of Brexit, electronic placement [half of all in-scope risks are now bound digitally], and last year’s performance management review”.