The transformation of the specialist Lloyd’s insurance and reinsurance marketplace has taken another step forward with an agreement between the market, DXC Technology and the International Underwriting Association (IUA) which aims to cut processing costs by 40%.
An agreement between Lloyd’s, DXC Technology, the Boards of the Lloyd’s Market Association (LMA) and the IUA was first announced in May of last year.
At this time, it was explained that a new joint venture agreement between Lloyd’s and DXC Technology was expected to significantly reduce processing costs for the market.
More details of the agreement have now been released and show that its goal is to create the solutions required to digitalise, streamline and fully automate processing for the Lloyd’s and London market.
The announcement builds on the ambitions set out in Blueprint Two, the second phase of the market’s transformation plan which targets digital efficiencies.
It’s all part of the market’s Future at Lloyd’s initiative, which is hoping to transform the infrastructure of the marketplace from a largely paper-based, analogue set of processes to a data-focused, automated, and cost-efficient one.
Lloyd’s notes that this will be the first time in more than two decades that the tech infrastructure underpinning the London market will be completely transformed.
This will be done via three key changes. The first important change will see the arrival of a Core Data Record (CDR) with common data standards for policy, premium, and claims, which translates digital processing.
Second, the agreement will see the automation of processes that support placement, policy creation, claims management and accounting, which Lloyd’s says will significantly lower production lead times, promote efficiency and reduce costs, offering improved services to market stakeholders and its customers.
Finally, the contract with DXC Technology features an agreement that market processing costs in the new digital world will be cut by at least 40% when compared to current services.
Lloyd’s Chief Executive Officer (CEO), John Neal, said: “In the challenging hybrid working environment forced upon businesses by COVID-19, the early efforts of the Lloyd’s and London market to modernise activities have been strongly demonstrated by the ability to operate digitally and remotely almost seamlessly, ensuring customers’ insurance needs are met and their claims are paid.
“Now, with the respective commitments of DXC, Lloyd’s and the entire London market, we have the capabilities to transition to a single platform solution that will provide automated processing and accounting for the market, a substantial reduction in operating costs, and offer customers a much faster, better service.”
Mike Salvino, President and CEO, DXC Technology, commented: “This new digital platform will fundamentally change the operating model of the whole London market. We are proud that DXC has been entrusted with a transformation of such unprecedented scale and importance. It’s the definition of ‘mission critical’ and is an opportunity for us to apply our deep industry and technology expertise.”
Dave Matcham, CEO of the IUA, added: “As an association, IUA and its members understand that digital transformation is imperative to their businesses and to remaining competitive in the London market. The new joint venture agreement reinforces the commitment of the company market, DXC and Lloyd’s to work together on such an important modernising agenda for central services.”
While Shelia Cameron, CEO of the LMA, said: “This is a significant step on the journey to digitise the Lloyd’s and London market. We look forward to working with our Managing Agent members, DXC, Lloyd’s and the wider London market, as we build a faster and more cost-efficient, data driven future for the market and its customers.”
