Blueprint Two is a two-year program that builds on the foundations laid by Blueprint One in September 2019 and focuses on shifting the market towards a digital ecosystem.
By increasingly relying on data and technology, Lloyd’s says Blueprint Two will “redesign the entire insurance lifecycle process” from placement through to accounting, payment, endorsements, claims, renewals and reporting.
Among the goals of the transformation plan is an £800 million aggregate reduction in operating costs for brokers, underwriters and business partners at Lloyd’s.
Blueprint Two also sets out to achieve clear data standards to support the next generation of placement platforms at Lloyd’s, as well as automated claims recognition, routing and orchestration to facilitate faster claims payments.
Additionally, a new Lloyd’s marketplace gateway and quick processing capability will be implemented to for faster issuance of cover and simultaneous creation of technical accounting records.
“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,” said Bruce Carnegie-Brown, Chairman of Lloyd’s.
“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, also commented: “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.”
Blueprint One, which laid out Lloyd’s plans for 2020, included a variety of goals that addressed underwriting performance, data, technology, modern syndication of risk, and culture and people.
These included a set of defined data standards and structures, a risk exchange that could process as much as 40% of Lloyd’s risks, and a claims solution pilot that was set to include a triage engine for automatically segmenting simple, standard, and complex claims.
However, back in February, Lloyd’s decided to narrow the focus of its strategy in an update to Blueprint One, which saw it largely concentrate on improvements to claims processes and the development of the London market’s electronic placing platform (PPL), which Lloyd’s opted to take a 40% stake in.
It comes as little surprise that Lloyd’s would choose to centre the Blueprint Two plans around digitalisation, given that the COVID-19 pandemic has forced re/insurers to increasingly rely on conducting business virtually this year.
Lloyd’s itself was forced to trial a ‘virtual underwriting room’ after lockdown measures prevented it from doing business out of its Lime Street office in London, and with the arrival of a second UK-wide lockdown the physical underwriting location will now be open for only one day each week.
Source: Reinsurance News
