Business

Lloyd’s transformation plan set to cut £800m in costs

Lloyd’s has published a new blueprint which sets out a transformation plan for the next phase of its strategy to “build the most advanced insurance marketplace in the world”, whilst reducing £800m in operating costs. 

Blueprint Two is a two-year programme that represents the second phase of Lloyd’s Future at Lloyd’s strategy, and will “bring to life” the strategies published in Blueprint One in September 2019.

According to Lloyd’s, the improvements laid out in the blueprint aim to deliver “significant operational efficiencies” that will lead to an estimated aggregate reduction of £800m in operating costs for brokers, underwriters and business partners. 

This will in turn enable the market to give more focus to value adding activities, such as product development, innovation and risk mitigation to improve customer outcomes.  

Lloyd’s added that the programme provides “tangible solutions that will radically shift the market to a digital ecosystem, powered by data and technology – ultimately delivering better value at a lower cost for its customers”. 

Blueprint Two’s strategies include:

  • Approved and clear data standards that will support the next generation of placement platforms and solutions at Lloyd’s.
  • A new Lloyd’s marketplace gateway and super-fast processing capability that will allow cover to be evidenced and issued in minutes and simultaneously create technical accounting records.
  • Automated claims recognition, routing and orchestration that will facilitate faster claims payments.

Bruce Carnegie-Brown, chairman of Lloyd’s said: “The pandemic has demonstrated that Lloyd’s can adapt in a fast-changing environment and this has only increased our hunger to get on and make further change happen. 

“As a market, we have the appetite and energy to execute on our plans for the future and in doing so, we have the makings of real, transformational change. Blueprint Two is our roadmap to get there and I’m confident that together we can make it happen.”

Jen Rigby, COO and executive sponsor of Future at Lloyd’s, said: “The plans we set out in Blueprint Two will deliver truly revolutionary change for the market, ensuring the future of the Lloyd’s market is digital from start to finish, with data at its core. 

“We’re now bringing to life the thinking in Blueprint One by practically showing how our future digital ecosystem will improve risk placement in the market and help customers recover from loss. It’s been an incredible journey so far and I’m excited about bringing these solutions to life over the next two years.”

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