01 January 2020 | 5-minute read
At the LMA we recognise that this is a critical time for Lloyd’s, the market and our members, the release of Blueprint One says as much. The blue puff of smoke from EC3 has created an opportunity to pivot off years of challenging performance, financial losses, poor loss ratios and spiralling expense costs.
It is hard to argue with the intent and vision of the Future at Lloyd’s Blueprint - it presents itself as a modern and disruptive Lloyd’s that is cheaper, faster, leaner and meaner.
The pivot point following Blueprint One publication is different. In financial sectors the point of pivot is used as an indicator of market movement. That movement is still awaited within the Lloyd’s market. Whilst the Lloyd’s market is behind the vision and intent of the corporation it is questioning the elements of Lloyd’s Future that are not explicit, are naturally harder to commit to, but are absolutely necessary. They will be the bedrock of Lloyd’s and the markets future and deliver longer lasting benefits than technologies that will go out of date as quick as the minidisc.
The LMA understand the true Future of Lloyd’s beyond Blueprint One, we support the vision and have the expertise, knowledge and skills to influence the shaping and delivery of solutions, to enable our members to respond to the Future at Lloyd’s and succeed from its outcomes.
How do the LMA respond to the blueprint, where do we focus and add value, and what delivers the longer lasting benefits?
Focus, Value & Benefits
The Business Operating Model - the critical element of Lloyd’s that has driven how business is sourced and transacted for years This is the biggest transformation that can be committed to and needs attention before embarking on the IT operating model. Define the modern and bespoke business model by placement method and do so through the lens of the market, the customers and the value chain, driving and focusing on areas of commonality between them and the business and IT operating model. This will generate the buy in required to execute the model that is needed to make Lloyd’s, our value chain and our members organisations a success.
People & Culture - our connected network and deep understanding of the markets people and the future workforce will allow us to support the markets challenges in respect of talent, skills and culture, and grow the markets people. It is about providing leadership and support to create a modern workforce that is as comfortable with data and technology as it is with interacting and negotiating with the value chain and customers, to provide a bespoke experience from product offering to claims response. We understand the problem and the solution It isn’t all about redundancy and cost savings: it is about re-skilling, up-skilling and re-deployment, following a refreshed mind-set and approach and doing so by providing bespoke programmes, training offerings and modern secondments, whilst thinking differently about attracting outside industry talent, to help our people on the journey.
Data - a data driven ‘hub and spoke’ model that seamlessly integrates our value chain and market via application programme interfaces's (APIs). A new world of smart contracts, real time data and insights, enabling intelligent assistants (robotic process automation and artificial intelligence) to enhance underwriter and claims decisions and improve customer experience, all of which has to be enabled by focusing on and creating new data standards, a data policy and data requirements to transform the quality and effectiveness of our data and leverage the global power that it has here in London.
Technology - the software and service providers of our market will compete to respond to operating and process problems with platforms or portals, but the focus should be on generating technology partnerships with one another to build and enable a transformational IT operating model that delivers technologies that complement each other in the leanest, most connected and flexible stack possible. Having visibility and access to one providers products, technology and service from within another needs to be embraced, creating siloed but interoperable technologies shouldn’t be the only accepted model and solution.
Process - new and modern business processes need to be defined to enable both the business operating model and the technological response, generating new processes simultaneously to the delivery of the technology will result in processes hardly being referred to and workarounds being a thing of the past. Data will be rich and available, the technology will be responsive and the business operating model will be flexible and interactive.
What this can achieve is not up for debate. A transformational approach to creating, managing and servicing business. We do however need to prioritise and influence the above to ensure that we don’t embark on a technological operating model programme that digitises our current problems and processes: we have been there and done that.
How this is achieved is a question that we at the LMA can help you answer. We are set up to partner with our members and Lloyd’s to lead, guide and support the blueprint and to help your business to successfully design, execute and adapt the model, solutions and people to enable the markets success.
Published: 01 January 2020