Other factors generally seen as very important in driving technology change included the desire to better leverage IM and data in the enterprise (67%) and sustainable growth and scalability (51%).
Alignment to Blueprint Two, however, was least likely to be considered very important or important by underwriting business leaders, with 41% rating it as not important.
Companies risk putting themselves at a competitive disadvantage if they don’t focus on aligning with the market-wide Blueprint Two program, warned Chris Croft, CEO of the London & International Insurance Brokers’ Association ( LIIBA).
“Central market treatment is about everyone doing the same thing, not necessarily the right thing – ideally it will also be the right thing,” the brokers’ association boss said. insurance company.
“Standardization is what drives efficiency and collective processes like this – if you have one too many relationships with a broker trying to transact premium with multiple carriers on a syndicated risk, the key to doing it efficiently is the standard data messaging and standard processes.”
Blueprint Two is “our best estimate” of what those processes should be, according to Croft.
“If people don’t invest in it, they may be an outlier and more difficult to manage than the rest of the market, and that may not be a great trading position,” Croft said.
Tools and investment
PwC interviewed senior executives from insurers in the London market doing business with Lloyd’s and the London corporate market, with some respondents also operating in overseas territories and global reinsurance hubs.
Exposure management tools performed best for participants, with 68% agreeing they were fit for purpose. Assessment tools (48%) and document management systems (43%) complete the top three.
More than half of respondents disagreed when asked if portfolio management tools (58%) or underwriting workshops or workflows (54%) worked well for them.
Respondents were most likely to invest in digitizing pricing spreadsheets (53%), underwriting workshops (49%), system integrations to reduce re-keying (49%), online placement platforms the market (47%) and the automation of bid requests (41%) over the next 12 months.
These are “absolutely the right goals,” according to Sheila Cameron, CEO of Lloyd’s Market Association and chair of the Inter-Market Data Council, which was launched in 2021 with the aim of creating common data standards for fully electronic commerce. .
“COVID has been a watershed moment for technology in the London market, and has brought a real realization that we can deliver both placements and contracts digitally and really move some of our business online,” said Cameron said.
Broker API links (29%) and algorithmic underwriting rules (29%) were the least likely to see investments over the next year, according to the report.
The market should expect broker APIs to figure more prominently “in the coming years”, according to Justin Davies, Xceedance SVP, Regional Head – EMEA, who confirmed that the company is supporting at least one in such an initiative.
“They need a bit more in terms of development and integration, but this is the way forward for our industry,” Davies said.
The biggest risk to business transformation plans was delivery and execution, with 27% of respondents reporting this as a concern. Respondents also ranked poor insurer adoption (16%) and inappropriate system implementations or configurations (13%) as the top three risks.
Companies can help themselves avoid fulfillment and delivery problems by finding the right partner, according to Davies.
“Working with a company that has a proven track record of success, technological prowess and deep insurance expertise will help minimize project risk and amplify the value realized through such an insurance initiative. transformation,” said SVP Xceedance.
PWC also recommended planning a “comprehensive and integrated” change program rather than “disjointed initiatives”, as well as being clear about what is expected of a tool, and not using agility “as an excuse. ” for undisciplined project management.
“It’s easy to make assumptions about the benefits that new tools may bring, but without the right processes and adoption, the benefits of change often don’t materialize,” the report says.