Lloyd’s unveils ‘mission critical’ to fully ‘transform’ London market operating model
Lloyd’s of London has signed a joint venture agreement with DXC Technology and the International Underwriting Association (IUA) to help “transform” the world’s largest re/insurance marketplace from a largely paper-based, analogue set of processes to one that is data-focused, automated, and cost-efficient.
Together, they plan to build new solutions to digitalise, streamline and fully automate processing for the Lloyd’s and London market, fulfilling ambitions set out in Blueprint Two. The agreement has also received support from Lloyd’s Market Association (LMA).
This will be the first time, in over 20 years, that the technology infrastructure underpinning the London market will be completely transformed with the rebuild of the digital ‘engine room’ that powers the Lloyd’s and London market.
The initiative will include a Core Data Record (CDR) with common data standards for policy, premium and claims, which translates digital processing; an automation of processes that support placement, policy creation, claims management and accounting, which will significantly reduce production lead times, drive efficiency and reduce cost, offering a better set of services to market stakeholders and our customers; and an agreement that market processing costs in the new digital world will reduce by at least 40% when compared to current services.
John Neal (pictured), chief executive officer of Lloyd’s, said: “In the challenging hybrid working environment forced upon businesses by COVID-19, the early efforts of the Lloyd’s and London market to modernise activities have been strongly demonstrated by the ability to operate digitally and remotely almost seamlessly, ensuring customers’ insurance needs are met and their claims are paid. Now, with the respective commitments of DXC, Lloyd’s and the entire London market, we have the capabilities to transition to a single platform solution that will provide automated processing and accounting for the market, a substantial reduction in operating costs, and offer customers a much faster, better service.”
Mike Salvino, president and CEO, DXC Technology, said: “This new digital platform will fundamentally change the operating model of the whole London market. We are proud that DXC has been entrusted with a transformation of such unprecedented scale and importance. It’s the definition of ‘mission critical’ and is an opportunity for us to apply our deep industry and technology expertise.”
Dave Matcham, CEO of the IUA, said: “As an association, IUA and its members understand that digital transformation is imperative to their businesses and to remaining competitive in the London market. The new joint venture agreement reinforces the commitment of the company market, DXC and Lloyd’s to work together on such an important modernising agenda for central services.”
Sheila Cameron, CEO of the LMA, commented: "This is a significant step on the journey to digitise the Lloyd’s and London market. We look forward to working with our Managing Agent members, DXC, Lloyd’s and the wider London market, as we build a faster and more cost-efficient, data driven future for the market and its customers.”
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