Lloyd’s is working “in earnest” on building and delivering prototypes as it revamps how it does business after six radical initiatives met enthusiastic global feedback.
On September 30 the market will deliver a blueprint detailing its future, and it expects some solutions to be operational early next year.
“The reimagining of the Lloyd’s platform… offers our market an incredible chance to create the most customer-centric digital insurance platform in the world,” CEO John Neal said.
“The outstanding level of support we have received so far… demonstrates that the Future at Lloyd’s goals and proposals offer a compelling and relevant foundation on which we can begin building a blueprint,”
A 10-week global consultation on the proposed changes generated more than 4000 responses, the 333-year-old insurance market says, with the majority reporting “they are confident the proposals will deliver the aims of the Future at Lloyd’s”.
The consultation ran from May 1 to last Wednesday, guided by a prospectus outlining six key responses to industry challenges.
It proposed the creation of a Lloyd’s Risk Exchange to place simple risks in minutes, and at a fraction of current costs.
Lloyd’s promises its blueprint “will ensure buying insurance is faster, simpler and better value”.
Its aims are improved risk management products and services, simplified access to the market, reduced cost of doing business, and an inclusive, innovative culture to attract the best talent.
Lloyd’s, which lost £1 billion ($1.8 billion) before tax last year and £2 billion ($3.6billion) in 2017 after natural catastrophes spiked, warns threats from new and traditional perils are rising and the industry must create products and services relevant to customer needs.
Discussion questions in the prospectus asked what it will take to cut the cost of insurance placement in half and what must be done to make Lloyd’s more attractive to third-party capital.
Ambitions include reducing “request to bind and policy issuance” lead times from weeks to days, and cutting acquisition and administration costs for the most common risks from 30-40% to 10-20%