Lloyd’s takes 40% of PPL as Blueprint modernisation ramps up

​Lloyd’s of London has confirmed the Corporation will take a 40 percent stake in the London Market's electronic placing platform (PPL), as the market shared progress updates and confirmed its priorities for the first phase of Blueprint One on a new ‘Future at Lloyd’s’ website.

The purchase of the stake in PPL recognises it is a “key component” of the new complex risk platform, the organisation said, as it also confirmed that the first risk exchange pilot will be trialled in 2020 to link together the e-trading portals of brokers and insurers.

Ahead of the first phase of the Blueprint One, Lloyd’s engaged with everyone that uses and works with the market to ensure that the priorities of the programme match those of stakeholders. This engagement work has informed workstream planning and helped to create the foundations for The Future at Lloyd’s, while “delivering early value to the market”.

Funding of up to £400 million has been secured for Phase 1, however, John Neal said he did not expect to use the full amount available.The governance structure and delivery teams for the first phase have also been set up.

Lloyd’s said its priorities for 2020 were chosen to delivery solutions that offer the most benefit to key stakeholders and customers and that drive tangible value. These include the investment in and development of the next generation PPL, as part of the complex risk platform; a new digital solution for coverholder business as part of the Lloyd’s risk exchange that will make it quicker and easier for capital to attach to risk; and accelerated process improvements to claims, including piloting automated settlement.

The organisation will also prioritise three foundational initiatives this year to create “the essential infrastructure” for the Future at Lloyd’s ecosystem. These foundation areas are data and technology architecture, lead/follow (modern syndication of risk), and middle and back office transformation.

Lloyd’s said that alongside its 2020 priorities it will continue to work on ideas set out in Blueprint One to be delivered in 2021. For example, the organisation is working on a prototype of the “data-first” version of the complex risk platform, new capital investment opportunities, including through the syndicate-in-a-box framework, and a commitment to ongoing cultural change.

In January, the market confirmed that marine hull and international casualty binders would be the classes of business to take part in the first lead/follow (modern syndication of risk) pilot. This will start in early Q2 and is being led by the LMA. Also in January, Lloyd’s specialty insurer Brit Ltd. launched its ‘Sussex Specialty Insurance Fund’ offering alternative capital, such as Insurance Linked Securities (ILS) investors, improved access to the Lloyd’s market.

The market has also launched an online talent portal after its engagement work revealed high demand from the market for ways to get involved. It will contain information about full and part-time opportunities that are part of Lloyd’s digital transformation.

Jennifer Rigby, Lloyd’s chief operating officer and executive sponsor of the Future at Lloyd’s, said: “During transition we have been incredibly busy setting up the programme of activities, mobilising workstreams and securing the finances to deliver on our vision. I am delighted to reaffirm our commitment to building on the investments already made by the market, together with maintaining the ambition we set out with to create the world’s most advanced insurance marketplace.”

Chief executive officer John Neal added: “I am thrilled with the progress we have made during transition. We are now ready to start building the Future at Lloyd’s, having achieved three major objectives - securing finance, setting the governance structure and detailing the plan for the next 12 months and beyond. I am excited about the opportunities The Future at Lloyd’s offers to our market, and grateful for its support as we move the ideas from strategy into reality.”

Bronek Masojada, PPL Board chair, CEO of Hiscox, and member of the Future at Lloyd's Global Advisory Committee, said: "The investment by Lloyd's is a tangible demonstration of their commitment to building on the success that PPL has achieved so far. With over 70 percent of risks now being bound electronically we clearly have critical mass and this investment will be used to enhance and industrialise the platform we have today as well as building the next generation of PPL."