Data work will bring biggest expense ratio reduction at Lloyd’s

Initiatives to standardise and structure the use of data at Lloyd’s will bring the most substantial cost savings out of all the Future at Lloyd’s initiatives, according to a panel at Insurance Insider’s virtual (Re)Connect event today.

Speaking on the panel, Lloyd’s COO Jennifer Rigby said: “That ability to automate comes from what we can do with data and you will see it in claims [in particular].

The data work within the Future at Lloyd’s programme will be particularly important in the drive to remove duplication from the market, she explained. “That is what we are aiming to get rid of.”

Rigby continued that reducing the amount of “back and forth” in Lloyd’s processes will increase efficiencies across the market and allow participants to dedicate more time to more complex risks.

“It will speed things up and allow people to focus on much more value-add activities,” she explained.

Brit’s head of claims and operations Sheel Sawhney echoed this, saying data “helps eliminate the things that [brokers and underwriters] do not need to touch – so they can pick up the phone and talk to clients about claims that they have.”

Sawhney, who is also the executive sponsor for the Future at Lloyd’s claims workstream, explained that this would allow brokers and underwriters to be more “personal and high-touch”, which would in turn bring better customer outcomes.

He added that he aspired for claims data to be accessible in near real-time, which could then help identify trends and help provide risk mitigation solutions.

Lloyd’s chief digital officer Louise Smith added: “The most important thing we are doing at Lloyd’s is the end-to-end digital journey.”

Other panellists explained that high-quality data and data standards would be the foundation for a whole raft of other improvements and would be crucial in facilitating a smooth end-to-end process for customers, such as placement and payment.

Sue Jakobek, who is the managing director for online placement platform PPL, said that the organisation was working closely with the data workstream of the Future at Lloyd’s programme. She added it was currently working on data standards that would make data “flow” through the placement process.

Data is just one element of the wide-ranging Future at Lloyd’s programme, a strategy devised by the Corporation to modernise market processes. The Future at Lloyd’s website states that “a single source of structured, standard data will underpin the marketplace of the future”.

The Future at Lloyd’s plan was streamlined earlier this year to focus on the complex risk platform, digitisation of delegated authority business and the re-engineering of claims this year in light of Covid-19. Data and mid- and back-office work are two additional workstreams that support those three main priorities.

Covid-19 has also brought forward plans for a virtual underwriting room, which includes an improved market directory, online chat capability and virtual meeting booking system. It is currently being trialed with US property.

Lloyd’s chief digital officer Smith said that the virtual underwriting room would not be a replication of the physical underwriting room, which reopened on 1 September, but would take the best elements of how people connect and collaborate face-to-face, and then combine it with data and technology.

Smith added that this was only “step one” in its journey and that Lloyd’s would continue to listen to the market about new features and changes, test them and then iterate them, pointing out that the pilot was launched in around six weeks.

The panel added that Covid-19 had accelerated modernisation ambitions and projects across the marketplace, rather than hindering them.

COO Rigby said: “We haven’t paused. We certainly haven’t stopped at all. We might have made changes to plans and priorities, but we have continued to execute against ambitions in Blueprint One, which is to create the most advanced insurance marketplace.”

To view this discussion and other (Re)Connect sessions on demand for free, click here.

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