The London Market is ready to embrace technological change and innovation, but there are concerns that the market could fall behind more technologically capable competition, according to research from NTT DATA UK.
Based on a survey of 100 individuals, ranging from brokers to managing agents and syndicates, NTT DATA UK reported that 78% of market players had a vision and digital strategy that is well-communicated across their business.
However, the research concluded that executing on these strategies was proving more difficult, as 43% of respondents felt they were being outpaced by competition.
Half of those surveyed said they were up-to-date in the adoption of the latest technology, but 63% felt that many new entrants were more agile due to their technology.
More than two thirds of respondents were concerned that they would be left behind if they did not focus on tech investments.
“The London speciality insurance market is the leading global hub for insurance and reinsurance, but that enviable position is under serious threat from other hubs and tech start-ups with a much lower cost base,” said Kim Gray, Head of Insurance & Head of Diversity & Inclusion at NTT DATA UK.
“They are smaller and more agile,” she added, “making them better able to embrace technological change, and the resulting step-change, in improved customer service that smart new digital systems promise.”
Research also confirmed that 85% of respondents had seen little benefit delivered through the historic implementation of change, and no significant cost savings.
NTT DATA UK identified the main challenges to execution as legacy technology (53%), inconsistent data (66%) and a lack of understanding on how to use that technology to an advantage (48%).
“The research makes it clear that the London Markets understands the requirement of change and the majority have a vision and strategy in place to maximise on the opportunity the change agenda presents,” Gray continued.
“However, having a strategy is one thing, but implementing it is quite another,” she concluded. “The good news is, there are ways around these constraints, such as ensuring buy-in from all key stakeholders at all levels and managing for outcomes, not just activities.”
“Moreover – when it comes to executing to reach your vision – rather than focusing on ‘big concept’ projects, The London Markets must focus on easy-to-implement solutions that target key business problems in an agile way. Continuous incremental change will get you where you need to be.”
