Lloyd’s has confirmed its core priorities for 2020 as part of the Future at Lloyd’s programme. It will focus on investment in a complex risk platform; a new digital solution for Coverholder business as part of the Lloyd’s risk exchange and accelerated process improvements to claims, including piloting automated settlement.

As part of its plans, Lloyd’s confirmed it will take a 40% stake in the London market's electronic placing platform, a key component of the new complex risk platform. The update also confirmed that the first risk exchange pilot will be trialled in 2020, in connecting broker and insurer e-trading portals.

Lloyd’s said it will also prioritise three foundational initiatives in 2020 - data and technology architecture, lead/follow (modern syndication of risk), and middle and back office transformation.

In its update Lloyd’s reiterated that marine hull and international casualty binders’ classes of business will take part in the first lead/follow (modern syndication of risk) pilot over the next few months, led by the Lloyd’s Market Association. It also added that Brit launched its Sussex Specialty Insurance Fund, which offers alternative capital, such as Insurance Linked Securities investors, in January.

“We are now ready to start building the Future at Lloyd’s, having achieved three major objectives - securing finance, setting the governance structure and detailing the plan for the next 12 months and beyond” added John Neal, Lloyd’s CEO.

The London & International Insurance Broking Association Lloyd’s welcomed the update but warned that Lloyd’s must focus more on reforming accounting and settlement process.

Christopher Croft, CEO of LIIBA said there is an "absolutely foundational area" where we worry not enough attention is being paid: the accounting and settlement process.

“Undoubtedly it lacks the glamour but resolving the complexity that currently surrounds it is vital. Brokers are still asked to do too much on behalf of insurers – significantly more than in any other insurance centre – very little of which is visible. Future at Lloyd’s has the opportunity to revive spirits in this area and reap considerable reward both in terms of benefit delivery and reputation for all participants," he added.

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