Lloyd’s of London is set to embark on a £300 million digital transformation project that will put data and tech at the heart of its operation in an effort to slash costs and streamline its processes.
The insurance market, which dates back over 300 years, is planning to create a “digital end-to-end platform” to handle complex risks in the insurance and reinsurance market, in a move designed to supplement face-to-face negotiations.
APIs will also be used to help connect the platform to insurance brokers’ own systems, while centralised tools such as a tax calculator and compliance checker will help simplify processes. The platform will be supported with information taken from a common data platform.
In addition, a digital Lloyd’s risk exchange will be created for handling less complex risk agreements at high volumes, allowing for brokers to easily create and purchase policies, while also accessing Lloyd’s products and services.
To speed up the placement of risks and reduce their costs, algorithms will automatically rate the risks, with a centralised tax calculator, compliance checker, and data platform helping to ensure risks are created effectively.
The changes, dubbed The Future of Lloyd’s Blueprint One, come in response to poor performance and complaints around the high cost of doing business with market.
Lloyd’s chief executive John Neal said: "This 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."
Programme delivery will be led by Lloyd’s chief operations officer and executive committee member Jennifer Rigby. She said: "Our dedicated team are working at pace to develop and deliver the solutions we’ve promised to fundamentally transform our market."
According to a recent IDC report, spending on technologies and services that enable digital transformation are forecast to soar to £5.7 trillion in three years, driven by data intelligence and analytics.