Old Lloyd's, New Lloyd's - What the Future at Lloyd's May Mean for the Insurance Industry
Conning: Lloyd’s is Attempting to Reinvent Itself – Again. Will it Succeed?
HARTFORD, CT – May 20, 2020 – The coronavirus pandemic poses challenges for insurers around the world, but for few more dramatically than Lloyd’s, the insurance market where brokers and underwriters have done business face to face for over three centuries. With the underwriting room on Lime Street now closed, Lloyd’s ambitious plan for a more efficient, digitized marketplace – published as Blueprint One: The Future at Lloyd’s last September – looks prescient. But questions about its feasibility remain.
Under pressure from deteriorating results, stubbornly high expenses, cumbersome practices and growing global competition, Lloyd’s responded with a bold initiative that was widely praised when it was launched. The plan proposed a comprehensive overhaul of Lloyd’s business processes to slash expenses, attract new capital providers, and enhance customer service. Progress has been made with several of the Blueprint’s workstreams, but considerable work remains to be done, and success is by no means guaranteed. “Sweeping technology-driven changes have been heralded at Lloyd’s before and have not always delivered,” says Jerry Theodorou, Director, Conning Insurance Research.
Conning’s study “Old Lloyd’s, New Lloyd’s – What the Future at Lloyd’s May Mean for the Insurance Industry” explores prospects for the plan’s ultimate success. The study presents important implications for brokers as well as insurers competing with Lloyd’s at both ends of the market – complex risks as well as binding authority business.
If the plan succeeds, Lloyd’s should emerge stronger in its key competencies, particularly as the dominant force within the US surplus lines market for hard-to-place risks. “There remains a centripetal force attracting business to Lloyd’s,” says Steve Webersen, Managing Director and head of Conning Insurance Research. “It is a true cluster of insurance and reinsurance expertise and a crucible for innovation. But it is not always efficient and its expenses are very high.”
“Old Lloyd’s, New Lloyd’s – What the Future at Lloyd’s May Mean for the Insurance Industry” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
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Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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