Insurance companies must take the lead if the industry is to benefit from new IT solutions. That's the stark warning from Aon.
Speaking at August Group's briefing on business process management (BPM) solutions for the insurance industry, Aon's executive director, Phil Tyson called on the "big players" to create momentum for IT change.
"Companies like us need enterprise solutions. The benefits of solutions like August's BPM software are clear. However we won't really enjoy the benefits until the major players embrace the technology," he said.
Tyson's warning was at odds with Lloyd's Names. A Lloyd's Names source who did not want to be named said: "The London market principles (LMPs) provide clear guidance on the best practice for the insurance industry.
"If any changes are needed to promote the uptake of BPM it would be preferable to enhance the LMP's rather than force management changes."
Several brokers disagreed with the Lloyd's view on the way forward for BPM in the industry.
An Amlin spokeswoman said: "LMP has been rewritten several times so we need a new approach. If the major half dozen players implement BPM software then we will see massive cost savings in the medium term."
August Group's client services director Scott Paton echoed this view, saying: "BPM has not taken off across the whole sector yet because no one wants to be the guinea pig. Aon has benefited from BPM which allows reductions in claims costs - currently 80% of total costs."
Tyson concluded the speeches with the warning: "The only way the industry will benefit from BPM is if there is a cultural change in the London market and not just a handful of companies using it."
