Lloyd’s warned it needs more than a blueprint to survive

The Lloyd’s market has been warned it needs to transform its plans for reform into a definitive and tangible playbook or risk losing its place in the global (re)insurance industry.

Financial services consultancy and software provider Altus has published a Specialty Markets whitepaper outlining the need for Lloyd’s to create ‘playbooks’ for transformational change if it is to survive and thrive amidst growing challenges and competition.

Matt Carter, practice director of Altus’ Specialty Markets team, said the need for action was becoming acute.

“In this whitepaper, we’ve worked hard to set out our view of what comes next for Lloyd’s if it is to survive,” he explained.  “Right now, it is at risk of becoming far less relevant in five years.  Long gone are the days when it was just Lloyd’s that could handle the most complex, cross-border policies and claims.  Its competitors can now do the same work cheaper and faster.  It has simply lost its competitive edge, and it needs proper playbooks to regain it.”

“Blueprints for transformation are fine, but they are nothing more than just plans and proposals,” Cater added.  “They will never execute anything on their own.  Lloyd’s has done well to create its blueprints, but without clear and pragmatic playbooks to compliment them, none of the change that it theorises will actually happen.”

He said the whitepaper is built on a simple premise – through the “Future at Lloyd’s” programme, the world’s leading (re)insurance market has set out a number of “blueprints”, aimed at digitising it and making it “better, faster, and cheaper”.  But, Altus argues, without practical playbooks to deliver on these blueprints, how can it possibly achieve the levels of transformation required?

In the document, Altus examines and explains the issues around a number of key questions which it said will define the future success of the market and those who operate within it:

  • Why does Lloyd’s need to embark on a transformation programme?
  • What are the opportunities for Lloyd’s?
  • How can people at Lloyd’s realise the vision?
  • Why don’t blueprints cut it alone?
  • What is a playbook and why does Lloyd’s need one?
  • What are the challenges of Lloyd’s actually implementing its transformational blueprints?
  • How can Lloyd’s learn lessons of the past, rather than try and reinvent the wheel?

Carter added the plans were now reacting a tipping point where the market needed to see action on a range of the initiatives which have been proposed and ion which hundreds of millions of pounds have already been spent.

“One of the biggest potential mistakes that Lloyd’s is making is that its blueprints are for the market as a whole,” he added.  “This will not work.  With the market comprising of over 300 businesses, we argue that there is no one-size-fits-all solution to its challenges; every organisation needs an individualised playbook.  Trying to create a workable playbook for the entire market is an impossible task.

“Lloyd’s needs to change tack, and we set out a number of ways in our whitepaper for it to do that.  Unless it adopts this approach, or something similar, we cannot see it lasting.”

Financial services consultancy and software provider Altus has published a Specialty Markets whitepaper outlining the need for Lloyd’s to create ‘playbooks’ for transformational change if it is to survive and thrive amidst growing challenges and competition.

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