Lloyd's eyes £800m cost savings with 'revolutionary' Blueprint Two

Lloyd's has set out the next phase of its transformation plan via its Blueprint Two in a bid to "build the most advanced insurance marketplace in the world". Lloyd's believes the new initiatives could reduce operating costs for brokers, underwriters and its business partners by £800 million.

Blueprint Two initiatives include developing tangible solutions that will radically shift the market to a digital ecosystem using data and technology.

The comprehensive two-year programme seeks to transform the way insureds get covered by redesigning the entire insurance lifecycle process - from placement through to accounting, payment, endorsements, claims, renewals and reporting – offering a seamless digital service for all Lloyd’s customers and stakeholders globally.

One of the key goals of the transformation plan is to make it simpler and more efficient for market participants to trade, with an estimated aggregate reduction of £800 million in operating costs for brokers, underwriters and business partners, It will enable the market to focus more on product development, innovation and risk mitigation to improve customer outcomes.

Blueprint Two represents the second phase of the corporation's 'Future at Lloyd’s' strategy. It sets out to achieve clear data standards to support the next generation of placement platforms and solutions at Lloyd’s.

Additionally, 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.

It also looks to implement 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, chief operating officer 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.”