Lloyd’s confirmed a contract has been signed with DXC Technology and the International Underwriting Association (IUA) in an agreement that will build the solutions to digitalize, streamline and fully automate processing for the Lloyd’s and London market.
Lloyd’s described the agreement as a pivotal moment in fulfilling the ambition set out in Blueprint Two of the Future at Lloyd’s project, which will see the insurance marketplace transformed from a largely paper-based, analogue set of processes to one that is data-focused, automated, and cost-efficient.
The agreement has also received support from Lloyd’s Market Association (LMA), which represents all 51 Lloyd’s managing agencies and Lloyd’s members agents.
This will be the first time, in over 20 years that the technology infrastructure underpinning the London market will be completely transformed, said Lloyd’s in a statement. The rebuild of the digital “engine room” that powers the Lloyd’s and London market is predicated on three key changes:
- A Core Data Record (CDR) with common data standards for policy, premium and claims, which translates digital processing
- The automation of processes that support placement, policy creation, claims management and accounting, which will significantly reduce production lead times, drive efficiency and reduce cost, offering a better set of services to market stakeholders and our customers
- An agreement that market processing costs in the new digital world will reduce by at least 40% when compared to current services.
“In the challenging hybrid working environment forced upon businesses by COVID-19, the early efforts of the Lloyd’s and London market to modernize activities have been strongly demonstrated by the ability to operate digitally and remotely almost seamlessly, ensuring customers’ insurance needs are met and their claims are paid,” commented John Neal, CEO of Lloyd’s.
“Now, with the respective commitments of DXC, Lloyd’s and the entire London market, we have the capabilities to transition to a single platform solution that will provide automated processing and accounting for the market, a substantial reduction in operating costs, and offer customers a much faster, better service,” he added.
“This new digital platform will fundamentally change the operating model of the whole London market. We are proud that DXC has been entrusted with a transformation of such unprecedented scale and importance. It’s the definition of ‘mission critical’ and is an opportunity for us to apply our deep industry and technology expertise,” according to Mike Salvino, president and CEO, DXC Technology.
“As an association, IUA and its members understand that digital transformation is imperative to their businesses and to remaining competitive in the London market. The new joint venture agreement reinforces the commitment of the company market, DXC and Lloyd’s to work together on such an important modernising agenda for central services,” said Dave Matcham, CEO of the IUA, which represents the London company (non-Lloyd’s) market.
Sheila Cameron, CEO of the LMA, said: “This is a significant step on the journey to digitize the Lloyd’s and London market. We look forward to working with our Managing Agent members, DXC, Lloyd’s and the wider London market, as we build a faster and more cost-efficient, data driven future for the market and its customers.”
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