AFL Chairman Toby Esser welcomes the ideas set out in Lloyd’s Blueprint One – ambitious plans that will require a determination to realise and build the most advanced insurance marketplace in the world.
You would need to have been living under a rock for the last month not to have heard about the launch of Lloyd’s Blueprint One report – the long-awaited and much hyped plan that will form the next steps in turning the ambition to digitally transform Lloyd’s into a reality.
You can download Blueprint One here to read the full details about the six solutions model behind the proposed Lloyd’s ecosystem – the Complex Risk Platform, Lloyd’s Risk Exchange, the Claims Solution, the Capital Solution, the Syndicate in a Box, and the Services Hub.
There’s certainly a lot to get through, but the headline is that this is an impressive report which sets out a lot to accomplish.
Here are my three initial key takeaways:
1. RIP LM TOM: Just before Blueprint One was released it was reported that the London Market Target Operating Model modernisation programme was being brought to an end.
This wasn’t a huge surprise to many, but for a market that has suffered too many technology investment black holes, it was encouraging to read that much had been achieved – in fact, the need to build on the hard work, investment and proposed solutions put forward by LM TOM is explicitly noted in Blueprint One.
2. Electronic trading: As above, it simply can’t be a case of out with the old, in with the new – electronic trading is a central initiative of LM TOM, and to scrap initiatives like PPL and start again would be a huge waste of time, effort and investment.
Market-wide adoption of electronic trading must be top of the agenda, and it was also encouraging to read that investments in PPL upgrades will continue to support the current momentum around adoption and improve user experience.
It shouldn’t have taken our market this long and this much groaning to get where we are today with electronic trading, so now is the time to get this adopted market-wide before we add more bells and whistles to the process.
3. Interoperability matters: Developing a data-first electronic trading platform / next generation of PPL is clearly the correct direction of travel for the digital transformation of the market.
However, interoperability is critical to the success of electronic trading itself and indeed any market-wide technology initiatives at Lloyd’s. The ability to plug into the new and existing platforms and use standards across the market will define the future success of PPL, as it has defined its limitations to date.
Overall, Lloyd’s Blueprint One is hugely encouraging and will be broadly welcomed in the market. However, to my mind the first steps before the ambitious capital and risk sharing platforms, ecosystems, hubs and plugins start firing out in all directions, are to continue with the work that has already been accomplished and simply get things like the basic electronic trading goal achieved and adopted market-wide.
Lloyd’s reputation as the go-to market for complex risks must be protected and enhanced, and as a leading independent broker, we look forward to continuing to bring increasing volumes of international business to a market that can keep itself competitive, efficient and innovative.