Home / International / Lloyd's powers up data, technology overhaul
7 October 2019
Lloyd’s has committed to the development of electronic platforms to handle complex and simple risks following consultation on a three-year strategy to set the market up for the future.
The complex risk platform will use data and technology improvements to build on existing electronic placing platform (PPL) capabilities, while complementing face-to-face negotiations.
The Lloyd’s risk exchange for non-complex, high-volume covers aims to allow brokers and coverholders to access a central exchange, via their systems or a Lloyd’s portal, to instantly search for the right insurance for customers.
The exchange could eventually process as much as 40% of Lloyd’s risks, the market estimates, with analysis indicating a significant proportion of delegated authority business can fall within specified parameters.
“The corporation received a lot of feedback on the risk exchange proposal,” the market said in a Blueprint One document released last week. “Many stakeholders were excited about a new opportunity to write less complex risks that would expand Lloyd’s distribution reach and reduce costs,”
The document updates the Future at Lloyd’s paper that in May started consultations on six reform proposals.
Phase one of the reforms will be delivered next year, with phase two to run through 2021 and phase three from January 2022 onwards.
Lloyd’s also says Munich Re will begin in January to underwrite through a “syndicate-in-a-box” pilot which aims to bring innovative products to the market.
The syndicate-in-a-box will have no physical presence in Lloyd’s and will cover lines of business such as renewable energy and parametric insurance for weather risks.
“We believe this will not only benefit Munich Re, but will provide significant advantages to the wider Lloyd’s market, which we remain fully committed to,” Munich Re Board of Management Member Peter Roeder said.
In other measures, Lloyd’s is looking to attract new capital, including through insurance-linked securities.