Ambitious Blueprint Will Deliver new Lloyd’s Market

Lloyd’s Chairman Bruce Carnegie-Brown (pic) has hailed the publication of the first blueprint in its Future at Lloyd’s initiative as the beginning of the creation of the world’s most advanced insurance market.

The Blueprint was revealed today as Munich Re became the first operator of the new Syndicate in a Box scheme, with a new underwriting operation that will look at renewable energy and parametric weather risks but will be remote from Lloyd’s itself.

Lloyd’s explained: “Blueprint One marks the start of a transformational next stage of the Future at Lloyd’s. It is the beginning of our plan to create a modern, more relevant Lloyd’s market and, in doing so, lead the insurance industry for the next generation.

“This blueprint is: Our strategic intent, describing our vision for how the Lloyd’s market of the future will look. Our current thinking on each of the six solutions, informed by our consultation.

“Detail of Phase I plans for each solution, describing what will happen next and what will have been achieved by the end of 2020. Our requests of all Lloyd’s market participants to help build the Future at Lloyd’s. How and why we will succeed”

It added: “This blueprint is not the definitive answer, there is no such thing in our continually changing world. We will be working in a fast, agile way to ensure our plan evolves in step with our customers’ changing needs. And so, we will use the transition and planning phase, from 1 October 2019 for six months, to develop our thinking in several areas, to ensure we are ready to execute the plan.”

The plan sees the market reveal it is to deliver six core schemes. Phase I will be delivered during 2020 and will include early quick wins, including the launch of an electronic risk exchange which could, over time, process as much as 40% 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.

Mr Carnegie-Brown said: “This first Future at Lloyd’s blueprint marks an exciting new chapter for Lloyd’s. It sets out how we are going to combine data, technology and new ways of working with our existing strengths to transform the culture we work in and everything we do – from placing risks and paying claims to attracting capital and developing new products.

“In the prospectus, published on 1 May 2019, we suggested ways we could: ─ Offer better solutions to the risks faced by our customers ─ Deliver better products and services to our customers and capital providers ─ Simplify the way we work by being more efficient and reducing costs ─ Build an inclusive culture where everyone feels valued Blueprint One sets out how we are going to achieve these goals.”

He added: “Blueprint One is deliberately ambitious. When we asked you last year how we should change, you told us to be bold. You said this is Lloyd’s best opportunity to build a relevant and successful market for the future – and that we must seize it.

“You also told us to maintain a high level of ambition while making sure the plan is achievable. We will do this by delivering the Future at Lloyd’s in stages. A phased approach will allow thorough testing of each component and will accelerate our time to market. This means we will start delivering value to customers and the market quickly. We will regularly communicate our progress as we move through the phases.

“Getting to this stage has been a collaboration between the Corporation of Lloyd’s, the Lloyd’s market, market associations, customers and many others. Every detail you read in these pages is based on consultation feedback, market input through the design labs and advisory council guidance. Thank you to everyone who has helped so far. You have shown once again what the market can achieve when it unites behind a common purpose.

Now, as we move from design to executing the plan, the hard work really begins.”

He concluded: “This is a special time to be working at Lloyd’s. The changes we are making over the next few years will last for generations and will secure the future of this market we are all so passionate about.  I have no doubt we have the ambition, the plan and the commitment to succeed.”