Lloyd’s CEO calls for digital push

Lloyd’s CEO Inga Beale has warned about the dangers the market could face if it does not speed up the adoption of new technology.

The Lloyd’s insurance market is introducing electronic placement to support face to face negotiation, further increase efficiency in the market, reduce back office costs, and improve customer service.

“The London Market has made great strides towards modernisation,” Beale said in a Feb. 5 press release. “We have invested time and money in the London Market Target Operating Model (TOM) programme and delivered systems that we know work. For example, over 15,000 risks have been bound to date on the electronic placing platform (PPL) and nearly 60 percent of the Financial and Professional Lines risks are being placed electronically.

“Adoption is now vital and it is happening but, in the case of electronic placement, it is not happening fast enough. Unless the market moves together it will not reap the benefits and reduce administration costs.”

Lloyd’s facing criticism for its comparatively high costs to conduct business as administration costs and fees and commissions are pressuring margins.

“Without higher levels of adoption throughout the market we put our investment to date at risk and we are in danger of seeing administration costs rise even higher,” Beale warned. “It is for this reason that Lloyd’s is proposing to mandate the use of electronic placement on a phased basis over time.”

Lloyd’s will hold briefing sessions with the market to provide more information about PPL as well as details of how the electronic placement mandate might work and gather their input.

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