New report highlights Lloyd’s advantages in InsurTech ‘arms race’ – including global reach and nimble carriers
London, UK (Sept. 24, 2018) – A new report, InsurTech-led change in the Lloyd’s Market, was launched at the market’s Insurance 3.0 conference on Friday.
The study, undertaken for the LMA by Oxbow Partners, the management consultancy, praised the work of some Lloyd’s managing agents in developing new propositions and embracing new technology, citing Beazley for its Breach Response cyber product and XL Accelerate’s collaboration with Gatwick Airport and Oxbotica, amongst others.
The report further highlighted the advantages for Lloyd’s in the InsurTech ‘arms race’. With managing agents being nimbler than large insurance groups, ‘Supplier InsurTechs’ can be deployed quicker. Additionally, managing agents can take ‘Distribution InsurTechs’ global, using Lloyd’s extensive licences and their own relatively simple international management structures.
Other notable findings include:
- InsurTech has until now been seen as a trend in personal lines. There is now evidence that new technologies and methodologies are having an impact in commercial and specialty insurance.
- New data sources could have a transformational impact on underwriting, but would require a major cultural shift from current practices.
- The SME insurance value chain is being impacted by the emergence of cloud platforms which could become the ‘gatekeepers’ to customers, like social media in personal lines; this will impact the sale of specialty insurance products and delegated authority business.
- Advanced analytics are changing the products that insurers can sell, driving growth for insurers and closing protection gaps for customers.
- To take full advantage, managing agents need to make data and digital a Board-level agenda point, have a clear vision and implementation plan. They will need to make changes across the organisation, including people, governance and culture.
“InsurTech has moved beyond being viewed as a hostile entrant into Lloyd’s,” said Tom Payne, director of market operations at LMA. “InsurTech has arrived in the broader commercial and speciality markets – Lloyd’s heartland – and technology-led change will accelerate over the next few years, with innovation through new technology set to become the norm.”
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd’s Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £32billion per annum.
Lloyd’s is the world’s specialist insurance and reinsurance market. With expertise earned over centuries, Lloyd’s is the foundation of the insurance industry and the future of it. Led by expert underwriters and brokers in more than 200 territories, the Lloyd’s market develops the essential, complex and critical insurance needed to underwrite human progress. Backed by diverse global capital and excellent financial ratings, Lloyd’s works with a global network of over 4,000 insurance professionals to grow the insured world – building resilience for businesses and local communities, and strengthening economic growth around the world.
Source: Lloyd’sTags: InsurTech, Lloyd's, Lloyd's Market Association (LMA)