Neal issues Blueprint Two update after phase one delayed

Lloyd’s of London chief executive John Neal has said that phase one of Blueprint Two will be implemented when there is confidence that the technology works.

The programme sets out a vision for the end-to-end modernisation of business models, practices and systems within Lloyd’s – this is to overhaul paper-based processes and implement a more digital, data-led and automated approach.

Phase one was meant to be implemented in July 2024, although it was announced last week (28 March 2024) that a new target date of October 2024 had been set.

The decision to move the cutover was driven by feedback shared from market participants and their respective market associations.

During a media briefing, Neal said Lloyd’s will ”finalise a new milestone plan for the market, which should take us to that target cutover date of October”.

“We will not move the market to phase one of the digital services unless we’re confident that the technology works,” he added.

“By moving the crossover period, we will provide the market participants an additional three months to undertake their own internal testing and assurance activities ahead of any cutover.”

Profits

This came as Lloyd’s revealed it secured a profit before tax of £10.7bn in the 12 months to December 2023, an improvement from the £800m loss the previous year.

It came following a jump in underwriting profit, which rose from £2.6bn to £5.9bn year-on-year, while gross written premiums increased from £46.7bn to £52.1bn during the same period.

Neal said Lloyd’s would be able to continue innovating and performing in the years ahead as profitability grows.

“That will be supported by digitalisation through Blueprint Two, which is designed to reduce friction, cost and complexity in our marketplace,” he added.

Neal continued: “[We] will continue working alongside the market associations to ensure we can safely deliver phase one of Blueprint Two before we look ahead to the benefits that will be delivered through phase two, including digital placement of risk in 2025.”