Lloyd’s of London is plotting to strip out £1 billion of costs from the London insurance market in a bid to keep its crown as the world’s insurance centre.
In new chief executive John Neal’s first move since taking over, Lloyd’s will seek to use more tech by building a two-tier online system to help brokers place risk with underwriters more quickly.
The move is part of a six-point consultation launched on Wednesday to revive Lloyd’s, which has suffered from arcane structures, high costs and recent claims of sexism.
Younger tech talent will be encouraged to enter the market and there are plans to make it easier for capital from new sources like hedge funds to move in.
Chairman Bruce Carnegie-Brown said changing the technology at Lloyd’s would also help change the culture, heading off claims it lacks diversity.
He added the market’s costs could fall by 10% under the plans, which would be worth £1 billion.
“The insurance industry risks becoming less relevant today to its customer than it has been. We can use digital distribution channels to cut the costs of doing business,” he said.
Lloyd’s plans a new tech platform, dubbed Lloyd’s Risk Exchange, which could mirror the speed of some share trading and allow complex risks to be placed with underwriters in minutes. Carnegie-Brown dismissed suggestions the tech shake-up would lead to job losses.
“The number of products will increase dramatically and the people employed in the market will increase,” he said.
