Lloyd's of London has published a long-awaited modernization plan that sets out six key ideas to revamp the marketplace.
The "Future at Lloyd's Blueprint One," the first of a series of updates the marketplace plans to publish at least once a year, highlights an intensified focus on data and technology.
Among those six key ideas is a digital platform for complex risk that will enable digital placement of risks that are hardest to cover, and an exchange through which less-complicated risks can be placed in a more efficient and cost-effective manner, called Lloyd's Risk Exchange.
The third concept calls for flexible capital that can access a variety of insurance risks on Lloyd's platform. The blueprint also lays out a "syndicate-in-a-box" that will give market participants a streamlined process for launching new products and businesses and a next-generation claims service aimed at enhancing customer experience and speed up claims payments. Lloyd's will also create a single ecosystem of services that will help all market participants in develop and launch new business.
The market plans to deliver the first phase of the plan, to launch the electronic risk exchange, sometime during 2020. The exchange is expected to eventually process up to 40% of the market's risks. It will also pilot a solution to automatically organize claims in an effort to speed up settlement and simplify onboarding for coverholders. It is launching the first "syndicate-in-a-box" pilot as part of that first phase as well
The Lloyd's Market Association in a statement that it welcomed the plan and believes the market addressed many questions and concerns raised after the initial publication of the prospectus. The association said it plans to "digest, understand and reflect" on the finer details and begin "a detailed engagement process" with members to participate in executing on the blueprint.
