Will Tech Spoil the Appeal of Lloyd’s of London?
One of the attractions of Lloyd’s of London is the fact that the insurance business done there is often transacted in the way it was hundreds of years ago. But much of it may soon change, reports Reuters.
Lloyd’s CEO John Neal says the market is under growing pressure to modernize, and it is expected to unveil a new strategy in the coming week that will push to automate arcane processes, shift away from risky catastrophe insurance, and take a closer look at the role of brokers and the expenses associated with doing business at Lloyd’s.
For instance, all Lloyd’s brokers will have to shift to an electronic platform by June, and underwriters must move 50% of their business to the platform by mid-year. “The focus now turns to the changes we must make to ensure Lloyd’s succeeds in the future — by supercharging innovation, simplifying the process for capital to access Lloyd’s, automating claims processes, lowering costs by making an electronic exchange, and creating a culture of inclusivity,” says Neal.
But in a market where shipwrecks are still recorded by some insurers with a quill and paperwork is lugged around Lloyd’s futuristic 14-story building in slipcases, some brokers and underwriters are resisting innovation.