It is the first time in more than two decades that the marketplace’s technology will be completely transformed
Lloyd’s of London has confirmed that it has signed a joint venture with IT company DXC Technology and the International Underwriting Association (IUA) to transform the marketplace’s digital capability.
The venture aims to bring to life Lloyd’s Blueprint Two plans using digitalisation, streamlining and automation across the Lloyd’s and London markets.
Blueprint Two, which was published in November 2020, sets out a clear vision for the end-to-end modernisation of business models, practices and systems within Lloyd’s, to overhaul paper-based processes and implement a more digital, data-led and automated approach. The joint venture announced today (12 January 2022) marks a key milestone in this project.
John Neal, Lloyd’s chief executive, said: “In the challenging hybrid working environment forced upon businesses by Covid-19, the early efforts of the Lloyd’s and London market to modernise activities have been strongly demonstrated by the ability to operate digitally and remotely almost seamlessly, ensuring customers’ insurance needs are met and their claims are paid.
“Now, with the respective commitments of DXC, Lloyd’s and the entire London market, we have the capabilities to transition to a single platform solution that will provide automated processing and accounting for the market, a substantial reduction in operating costs and offer customers a much faster, better service.”
This will be the first time in more than 20 years that the technology infrastructure underpinning the Lloyd’s market will be completely transformed.
Dave Matcham, IUA’s chief executive, said: “As an association, [the] IUA and its members understand that digital transformation is imperative to businesses and to remaining competitive in the London market.
“The new joint venture agreement reinforces the commitment of the company market, DXC and Lloyd’s to work together on such an important modernising agenda for central services.”
Mike Salvino, DXC Technology’s president and chief executive, added: “This new digital platform will fundamentally change the operating model of the whole London market.
“We are proud that DXC has been entrusted with a transformation of such unprecedented scale and importance. It’s the definition of ‘mission critical’ and is an opportunity for us to apply our deep industry and technology expertise.”
The digital rebuild Lloyd’s is undertaking is based on three key changes:
- The creation of a Core Data Record (CDR), with common data standards for policy, premium and claims, which translates digital processing.
- The automation of processes that support placement, policy creation, claims management and accounting, which will significantly reduce production lead times, drive efficiency and reduce costs, offering a better set of services to market stakeholders and its customers.
- An agreement that market processing costs in the new digital world will reduce by at least 40% when compared to current services.
The Lloyd’s Market Association (LMA) is also supporting the venture.
Sheila Cameron, LMA’s chief executive, said: “This is a significant step on the journey to digitise the Lloyd’s and London market.
“We look forward to working with our managing agent members, DXC, Lloyd’s and the wider London market as we build a faster and more cost efficient, data driven future for the market and its customers.”