Lloyd’s of London Releases Blueprint to Create Super-Advanced Marketplace

September 30, 2019 by L.S. Howard

Lloyd’s of London has unveiled a blueprint for action to facilitate its Future at Lloyd’s project, which aims to “build the most advanced insurance marketplace in the world.”

This first blueprint, called “Blueprint One,” sets out six ideas of improved ways of working, with a focus on digital, data and technology to deliver greater benefits to customers. It will be updated, at least, on an annual basis.

Lloyd’s said Phase I of the blueprint will be delivered during 2020 and will include early quick wins, including the launch of the electronic risk exchange which could, over time, process as much as 40 percent of Lloyd’s risks. In addition, Lloyd’s will pilot a solution that automatically triages claims to speed up settlement and introduce simplified onboarding for Lloyd’s coverholders.

Lloyd’s stepped up its ongoing effort to build a more efficient, simpler and less costly marketplace when it published its Future at Lloyd’s prospectus in May. After a 10-week consultation period to gather ideas for market improvements, the blueprint for those changes is being unveiled today.

Here are the six integrated solutions Lloyd’s announced it is developing over the next year:

The Future at Lloyd’s project builds on an earlier modernization project, the London Market Target Operating Model (LM TOM), which includes the London market’s electronic placement platform, PPL. The LM TOM is now being wound down, supplanted by the Lloyd’s Blueprint for the Future at Lloyd’s, although the Blueprint is building on PPL’s capabilities.

Lloyd’s also announced that Munich Re will launch the first new “Syndicate-in-a-Box” through its Lloyd’s vehicle Munich Re Syndicate Limited. The new Munich Re Innovation Syndicate will begin underwriting on Jan. 1, 2020 with no physical presence in Lloyd’s. It will underwrite a range of innovative lines of business such as renewable energy and parametric insurance for weather risks.

“The extensive feedback we have received in progressing the blueprint has confirmed the preeminent place Lloyd’s holds globally in insurance and reinsurance. The plans unveiled today create execution certainty through phased delivery,” said John Neal, Lloyd’s CEO, in a statement to announce Blueprint One.

“The support we have enjoyed to date has been essential to delivering Blueprint One, and we are seeking the renewed commitment of all market participants to partner with us to achieve our vision to build the most advanced insurance marketplace in the world.”

Lloyd’s said it is focused on leadership across three key fronts:

For six months, starting Oct. 1, Lloyd’s will begin a planning phase to develop its blueprint “to ensure we are ready to execute the plan,” said Lloyd’s.

London Market Comments

“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 added. “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.”

“PPL has built a significant brand and following because it works for all parts of the community. 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,” Croft affirmed.

*This story ran previously in our sister publication Insurance Journal.