Lloyd's 'six bold ideas' that will change the future of the marketplace
Lloyd's has outlined 'six bold ideas', including simplifying market access and lowering costs, that it hopes will help transform the 333-year-old marketplace and prepare it to thrive in an increasingly challenging environment.
The specialist insurance and reinsurance market launched its new strategy for the future in May 2019, which was followed by wide-ranging consultation involving Lloyd’s ecosystem of market participants, customers and other stakeholders, on the transformational initiatives outlined in the prospectus.
Additionally, it has formed new advisory committees, comprised of a number of prominent figures from across the global insurance industry, to support its initiatives for the future.
Lloyd's said the work will begin on building and delivering prototypes and full services from October 2019, with some operational in early 2020.
Proposals are focused on offering better value for customers through what it described as "cutting-edge risk management products and services", simplifying access to the market, reducing the cost of doing business, and building an inclusive, innovative culture that attracts the best talent.
These include:
- Building a platform for complex risk that makes doing business easier and enables efficient digital placement of the most difficult-to-cover risks.
- A 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.
- An ecosystem of services that helps all market participants develop new business and provide outstanding service to their customers.
The proposals have garnered support from some of the key industry leaders who think that these initiatives will define the future sucess of the market.
"With this new strategy, Lloyd’s is accelerating its own evolution and charting a path forward for London to continue playing a significant role in the global insurance market," said Greg Case, Aon CEO.
Dan Glaser, president and CEO of Marsh & McLennan, said: “The Future at Lloyd’s is a unique opportunity to transform the marketplace and cater to the growing and diverse needs of its customers.”
Andrew Horton, Beazley CEO and chair of the London Market Group (LMG) said: “I strongly support the ideas contained in the Lloyd’s prospectus and am keen to continue working with colleagues across the market to help take these forward.”
Sheila Cameron, Lloyd’s Market Association CEO, said: “I am looking forward to working in partnership with Lloyd's, and on behalf of our members, to ensure that the work we undertake now will define the future success of the market and deliver truly outstanding outcomes for its clients.”
