The highly traditional insurance market has planned to use technology to improve efficiency.
Two Lloyd’s of London automated exchanges are slated to launch in order to make it possible for the traditional market to conduct business more quickly and inexpensively.
Lloyd’s is a massive market but is known for conducting its business in a highly traditional way.
There are currently 99 syndicate members to Lloyd’s, comprising both British and international insurance companies. That said, the majority of the company’s business is conducted in-person. This has caused it to experience two consecutive years of substantial losses from rising competition from centers such as Bermuda. The competition is keeping up with technology and consumer trends as fewer people want to do business face-to-face when they can serve themselves online.
The two Lloyd’s of London automated exchanges are meant to help the market to appeal to a new wave of consumers. The idea is to have one platform available to automate simple insurance business while a second one is used for more complex risks, said Lloyds in a strategy document discussed in a Reuters report. The document was titled “The Future at Lloyd’s”.
The two Lloyd’s of London automated exchanges are meant to be innovative, convenient and cost-efficient.
“We will succeed by harnessing the entrepreneurial and innovative spirit that is at the heart of Lloyd’s,” said the chief exec as of October 2018, John Neal.
The centuries-old insurance market first began in 1688 at Edward Lloyd’s coffee house. It is known for reliability and tradition as well as providing coverage for virtually everything, from homes to ship and artwork. That said, while that reputation has been among its best advantages until now, it has become clear that modernizing will be necessary for its continued successful survival.
While Lloyd’s has already moved some of its business to digital platform, but it has been making only slow progress.
“The new Lloyd’s will be nimbler and faster,” said the insurance market’s Chairman Bruce Carnegie-Brown in the strategy document’s preface.
The goal is to use the two Lloyd’s of London automated exchanges to reduce the costs associated with providing standard risk insurance to 10 to 20 percent of premiums from having been 30 to 40 percent of premiums.
