The specialist Lloyd’s of London insurance and reinsurance marketplace has announced a new strategy focused on delivering higher quality risk protection for the market’s clients.
Lloyd’s describes its new strategy as bold, and explains that it includes several transformational initiatives that have the potential to shape the future of the global insurance and reinsurance market.
As well as targeting the delivery of high quality risk protection for customers, the proposals offer ways to simplify access to the international insurance market, while at the same time lowering costs of doing business at Lloyd’s.
The marketplace has been on a mission for some time now to improve efficiency across the board, seeking to make it cheaper to do business at Lloyd’s in an effort to remain relevant and competitive in a very challenging market landscape.
Lloyd’s Chief Executive Officer (CEO), John Neal, said: “Lloyd’s unique attributes – the ability to access unparalleled underwriting expertise, financial security and market access all in one place – are more relevant today than ever. However, a dynamic risk environment combined with rapid advancements in technology have fundamentally changed the world. Lloyd’s is changing too, driven by a desire to provide the best (re)insurance products and services available anywhere.
“We will succeed by harnessing the entrepreneurial and innovative spirit that is at the heart of Lloyd’s. Together we have a tremendous opportunity to reimagine Lloyd’s and build a marketplace that is future focused, highly responsive to the changing and diverse needs of our global customers, with a culture of inclusivity and innovation.”
Specifically, the marketplace has unveiled six new ideas that could shape the Future at Lloyd’s, which the organisation says is evidence of how the market can respond to challenges and take advantage of opportunities to transform the way it provides client value.
The six new ideas put forward by Lloyd’s, are as follows: A platform for complex risk that makes doing business easier and enables efficient digital placement of the most difficult-to-cover risks; Lloyd’s Risk Exchange through which less complex risks can be placed in minutes at a fraction of today’s costs; Flexible capital that can simply and effectively access a diverse set of insurance risks on the Lloyd’s platform; A Syndicate-in-a-Box, which offers a streamlined opportunity for innovators to bring new products and business into the market; A next generation claims service that improves customer experience and increases trust in the market by speeding up claims payments; and, an ecosystem of services that helps all market participants develop new business and provide outstanding service to their customers.
Lloyd’s Chairman, Bruce Carnegie-Brown, added: “Throughout its history Lloyd’s has always sought to reinvent itself by remaining at the forefront of insurance innovation. The proposals we have announced today represent the culmination of months of engagement with stakeholders across the market and around the world. I believe they will set Lloyd’s up for success for the years to come.”
The Chief Executive Officer (CEO) of Aon, Greg Case added: “Every nation, every business and every community has never faced greater risk and greater volatility than they do today. In publishing this prospectus Lloyd’s has identified promising ideas to develop innovative solutions that will allow the insurance sector to move more quickly, at far less cost and in a way that helps all involved address today’s greatest risks. We know that risks will continue to evolve. I also know that, working together, our sector will adapt and remain relevant to our clients today and in the years to come. I want to commend Lloyd’s for taking a leadership position on this issue with true conviction.”
Chris Croft, the CEO of the London & International Insurance Brokers’ Association (LIIBA), said: “At LIIBA we have welcomed the very collaborative approach that Lloyd’s has taken to drawing up these ideas and in seeking our help. We share a common central objective: a strong, vibrant, innovative Lloyd’s market must be a key part of the offering we make to our clients. The ability to find cover for clients that is simply not available elsewhere has always been at the heart of London’s unique offering. We must ensure it retains and grows that ability, and we look forward to discussing what happens next.”
Lloyd’s states that this publication is the next step of wide-ranging consultation and blueprint development involving the market’s unique ecosystem of re/insurance market players. It adds that work will commence on building and delivering prototypes from October of this year, with some expected to be operational in early 2020.
CEO of global insurer and reinsurer Hiscox, Bronek Masojada, added: “These initiatives remind us of Lloyd’s centrality to the global insurance market and its determination to remain central to it as the world evolves. We look forward to working with all our Lloyd’s colleagues to bring these ideas to realisation.”
While Sheila Cameron, CEO of the Lloyd’s Market Association (LMA), said: “Today’s launch of “The Future at Lloyd’s” demonstrates John Neal’s commitment to put Lloyd’s at the front of the insurance flotilla. It offers an exciting view into how our shared marketplace can evolve and we are excited to work together with Lloyd’s on building out this braver future for the ultimate benefit of our customers.”