John Neal says 'Lloyd’s is changing' as he plots bold new strategy for future
Lloyd's has published its strategic plan of "transformational initiatives", including simplifying market access and lowering costs, to ensure the 333-year-old marketplace can thrive in an increasingly challenging environment.
The specialist insurance and reinsurance market described its new strategy as "bold" and said it aims to prepare the market for the future.
Proposals are focused on delivering higher quality risk protection for the market’s customers, while offering ways to simplify access to the global insurance market, together with lowering costs of doing business.
Lloyd's has put forward six fresh ideas. These include: a digital platform for complex risk that makes doing business easier for the most difficult-to-cover risks; the creation of Lloyd’s Risk Exchange which will handle less complex risks, so they can be placed in minutes and at a fraction of today’s costs; flexible capital that can 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 to improve customer experience and increase trust by speeding up claims payouts; and an ecosystem of services that helps all market participants develop new business and provide outstanding service to their customers.
Lloyd's said the work on building and delivering prototypes for the changes is expected to begin in October 2019, with some operational in early 2020.
John Neal, Lloyd's chief executive, 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.”
Bruce Carnegie-Brown, chairman of Lloyd’s, said: “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.”
Aon CEO Greg Case commented: “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, CEO of the London & International Insurance Brokers’ Association (LIIBA), added: “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.”
CEO of Hiscox Bronek Masojada said: “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, added: “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.”
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