Lloyd’s of London recently released its Blueprint Two strategy, which represents the second phase of its “Future at Lloyd’s” initiative, building on the goals set forth in Blueprint One. J. Russell Duffey, CIC, Vice President – Market Relations at RPS, provides some high-level insight on Blueprint Two’s effort to transform how the entire insurance lifecycle with London will be transacted moving forward.
“Right now the process involved in new business acquisition, endorsements, renewals, claims reporting, etc. is filled with friction,” notes Duffey.
“You have data being entered multiple times throughout the entire value chain because of the number of parties involved. Lloyd’s goal is to provide a digital framework, what they call a ‘Digital Gateway,’ for everyone to transact business utilizing a seamless, frictionless platform that eliminates multiple touchpoints.”
Blueprint Two will provide clear standards for data to be presented in a certain across any proprietary system. This will eliminate duplicate entry, cut down on errors, and allow for cleaner, generally more accurate data to flow through the value chain.
“Right now in a typical transaction, a wholesaler might enter data into a system, then a Lloyd’s broker re-enters the same data, only to be re-entered again by the syndicate. The whole process is inefficient and everyone is doing things differently,” says Duffey.
The Digital Gateway will also automatically generate records so whether it’s a single risk in the open market or for a delegated authority, the platform allows business to be transacted under an assigned market reference number (known as a “Core Data Record”). This will serve as a single point of reference connecting all subsequent processes, including accounting, payment, endorsements, claims, renewals and reporting. Right now this is a manual process.
“In addition, the Digital Gateway will digitize the claims process, allowing data to seamlessly transfer from an insured to the wholesaler to London, for example. The process currently involves two or three people,” says Duffey.
In the future, claims will be tracked throughout their lifecycle, resulting in a much faster settlement time and improved customer experience, according to Blueprint Two.
The goal behind Lloyd’s entire initiative, of course, is to provide greater efficiency and lower cost throughout the value chain, including lower premiums for insureds. Lloyd’s estimates that brokers and insurers could collectively reduce costs by more than £800 million (over $1 billion USD), which represents about a 3% reduction in operating costs.
Lloyd’s projects that it will take the next two years to bring its Digital Gateway to life, enabling wholesalers and others to plug into the platform. It’s an ambitious plan with an even more ambitious timeline, and we’ll continue to keep you posted on the progress.