Technology – the final frontier
The London market has always prided itself on reacting to the insurance needs of its policyholders, and usually this is associated with underwriting large, complex and exotic risks.
The market has an infrastructure and operating model that accommodates this. But in fact, as is made clear by the analysis underpinning the Future at Lloyd’s programme, the vast majority of transactions in the market are on relatively straightforward and standardised products that are ripe for digitisation.
In a small example of what can be done Quotall has supported specialty insurance broker La Playa, delivering the technology to enable them to launch a unique Professional Indemnity policy specifically designed for a new profession that simply didn’t exist five years ago, social media influencers.
This innovative, high volume, low value insurance product, underwritten by specialty global insurer Beazley, means the unusual insurance risks of social media influencers are covered by a tailor-made insurance cover, priced at a lower premium than a standard professional indemnity insurance policy.
It’s a good demonstration of how we have worked with a broker using a web-based platform to help them quickly and cost effectively launch and market a new specialty product from the Lloyd’s market, in direct response to new emerging risks. It is a modern, digital product for a digital age.
Blueprint for survival
And it’s not rocket science – we harness modern technology with a commitment to deliver nothing less than an exceptional user experience for our clients and their individual customers.
The potential in terms of business impact, and new business opportunities, if the industry gets digital transformation right will be huge. But at the same time, failure is simply not an option. As John Neal, Lloyd’s CEO, has made clear the cost burden of the current operating model is unsustainable: Lloyd’s risks, in his words, becoming “irrelevant”.
What does an insurance market do that Amazon can’t?
One question is whether the interest of the large technology behemoths, many of which are themselves exploring insurance offerings, is an opportunity or a threat for the traditional Lloyd’s market.
If the vision of Blueprint One can be realised, whereby all market professionals can access the platforms they need to place and fulfil insurance policies in a simple and efficient way, then the industry will protect itself so much more effectively from the technology giants currently circling its camp fires.
Clearly much analysis and thought has gone into the report and we are very pleased that by and large the market-wide response has been positive and supportive. Now it’s time to put words into action.