Representatives from various market groups have released statements commending the approach proposed by Lloyd’s Blueprint One, which outlines the first phase of the marketplace’s new strategy for change.
Industry executives praised the collaborative approach utilised by Lloyd’s, which says it has attempted to respond to the demands of the market.
“This Blueprint process has demonstrated tremendous cross-market collaboration in its creation, and we are delighted that the LMG Board will become the London advisory body for the Future at Lloyd’s – representing as it does the widest possible market representation across all stakeholders and, by including the ABI and CII in those discussions, the entire re/insurance value chain,” said Clare Lebecq, CEO of the London Market Group (LMG).
“Attracting and retaining talent is also the bedrock of all our futures and we will continue to lead the work on talent across the whole market place, building on initiatives such as the highly successful London Insurance Life social media campaign,” she added.
Blueprint One was released yesterday following the launch of the Future at Lloyd’s Prospectus back in May 2019.
It proposes to enhance Lloyd’s value proposition to customers by offering better insurance solutions, simplifying access to products and services, reducing the cost of doing business, and building an inclusive and innovative culture.
These goals will be underpinned by a heightened focus on underwriting performance, data, technology, modern syndication of risk, and culture and people, Lloyd’s explained.
Phase I of the strategy will begin from January 2020, following a period of transition and planning that will commence on October 1.
“The broking community welcomes the fact that the development of the blueprint for the Future at Lloyd’s has been a positive and discursive process,” said Christopher Croft, CEO of the London & International Insurance Brokers Association (LIIBA).
“For any market development, the distribution arm is at the front end of the process, getting that part right is critical to whatever Lloyd’s develops, as is ensuring any solutions developed work equally efficiently for non-Lloyd’s carriers given the global nature of our market,” he explained.
“LIIBA members have worked assiduously in recent years to shorten the value chain that brings business to London and therefore to reduce cost and complexity significantly. Technology has a role to play in helping us reduce that further but not at the expense of the value that an intermediary brings to the process.”
Croft also commented on the state of Placement Platform Limited (PPL), the initiative delivered by the London Market Target Operating Model (TOM), a core component of the market modernisation proposal set out by the LMG.
The LMG announced last week that it would begin to wind down LM TOM, with Lloyd’s now set to become the main driving of modernisation through new its Future at Lloyd’s strategy.
“PPL has built a significant brand and following because it works for all parts of the community,” Croft said. “The fact we can develop something so important together has been a valuable lesson. The announcement that PPL will form the basis for the complex risk platform, and will receive investment in improving it further, is great news for the market.”
Bronek Masojada, CEO of Hiscox and Chair of Placing Platform Ltd, also commented: “PPL has become the platform of choice for the London Market. The critical mass that the market has built is invaluable and it is entirely logical that Lloyd’s should use it as the basis for its complex risk platform.
“One of our priorities has been to improve the user experience and build a new platform,” he continued. “Lloyd’s support will accelerate that process and is warmly welcomed. The platform’s success is dependent on all segments of the market collaborating to make it work – this is the spirit that makes change happen in Lloyd’s and the London market.”
Sheila Cameron, CEO of the Lloyd’s Market Association (LMA), further stated: “Lloyd’s ambition to be the most advanced insurance marketplace in the world is achievable, but will be thoroughly dependent on our ability to innovate and evolve our model so that we may continue to offer outstanding underwriting products and services to our customers. It is absolutely right that this is the primary focus of the Future at Lloyd’s, which is why it has the broad support of the LMA and the wider market.”
Following publication of the prospectus in May, the LMA initiated a consultation with its membership, the managing and members’ agents community.
The Association acknowledged that a number of key points from its response feature in the latest plan.
These include a data-first approach to risk placement, a customer centric claims solution, modernised syndication, efficient processes for capital and new syndicates, and focussed efforts on a culture which attracts the best global talent.
“I am reassured that many of the comments and questions posed in our response to Lloyd’s have been addressed or acknowledged in Blueprint One,” Cameron remarked. “We look forward to seeing more detailed development of the six integrated solutions that will form the future Lloyd’s ecosystem and help to shape the development of some of the supporting strands such as modern risk syndication.”
She went on: “In the coming days and weeks, we will take due care and attention to digest, understand and reflect on the specifics and finer points of the Blueprint and begin a detailed engagement process with our members, so that we can continue to play an important part in executing the plan and shaping the future of our market.”
Finally, Jennette Newman, President of London Forum of Insurance Lawyers (FOIL) and Clyde & Co partner, commented: “The blueprint for change has the potential to help safeguard Lloyd’s as London faces up to challenging times ahead – not least Brexit – which may well make life harder for London.”
“The ambition and scope of change are impressive, but it’s crunch time now as we move from words to actions. The structural changes are substantial and not all businesses will benefit – maintaining a sense of progress will be critical if the blueprint is to deliver,” she continued.
“Binder and delegated authority business traded on the Lloyd’s Risk Exchange is in the vanguard of change and it will be important for market confidence overall that this transitions smoothly. Businesses will also need to see that triaging of claims and the Syndicate in a Box can indeed deliver the efficiency and speed which are so essential to improved performance. To succeed, all of these changes will need to be underpinned by the seamless adoption of new technology.”
“But we cannot forget the cultural backdrop against which these changes are happening,” Newman added. “It will make no difference what structural or business changes are introduced if Lloyd’s can’t demonstrate that a significant cultural shift is underway. Lloyd’s ability to see through a complex modernisation programme hinges on its ability to prove it is the natural home for professional, trusted, high performing and diverse teams.”