Insurance law firm Clyde & Co has suggested that in 2020 we will see Lloyd’s of London take control of its future by implementing the key initiatives proposed in Blueprint One.
Analysts from the law firm say Lloyd’s has already taken control of performance via Decile 10, a program they say has driven “clear improvement and demonstrated its ability to execute a challenging strategy while maintaining cross-market support.”
However, in the next 12 months, Clyde & Co expects Lloyd’s to extend that control by exercising greater power over all businesses that choose to operate within it.
This would not only be limited to underwriters, but brokers, MGAs, alternative capital providers, technology providers, claims and loss adjusters – all of which are reportedly keen to claim or preserve their place in the ecosystem.
Furthermore, they say Lloyd’s plans to acquire a financial interest in PPL signals a clear intent to directly control and manage the market transformation, positioning the marketplace to take full ownership of the decision-making and operation of most of the technology systems that will underpin market operations going forward.
Control is important, they add, because technology is “the rock on which the market has foundered many times before.”
So far, the law firm says Lloyd’s has been astute in its consultations and has managed to keep market players on side.
While there will no doubt be bumps in the road, analysts say there is a real sense that the majority understand the need for change and are behind its plans, challenging as they may prove for some.
These developments, the analysts add, have the potential to lay the groundwork for a strong and competitive Lloyd’s market and 2020 should be the year the market takes decisive steps forward to secure its future competitiveness.