Lloyd’s has proposed a new platform to speed placement of less complex risks and has targeted cost-cutting as the market faces rising pressure to improve its performance.

The Future at Lloyd’s strategy paper released overnight also includes plans for more efficient digital placement of the most difficult-to-cover risks and suggests a new model to help innovative entrants join the market.

“Throughout its history Lloyd’s has always sought to reinvent itself by remaining at the forefront of insurance innovation,” Chairman Bruce Carnegie-Brown said.

“The proposals we have announced today represent the culmination of months of engagement with stakeholders across the market and around the world. I believe they will set Lloyd’s up for success for the years to come.”

Lloyd’s General Representative in Australia Chris MacKinnon says key issues identified by customers include the need for more comprehensive cover and the highest quality protection, a simpler process for accessing products and services and a lower cost of doing business.

The marketplace has opened a consultation period on the document and plans to begin building and delivering on the proposals from later this year.

“There is an online survey which is now open for the next 10 weeks, and we encourage our Australia stakeholders to participate,” Mr MacKinnon told insuranceNEWS.com.au today.

“Locally, we will also be conducting one-to-one interviews with stakeholders, running focus groups and seeking feedback through the industry associations.”

Lloyd’s reported a £1 billion ($1.83 billion) pre-tax loss last year as the global industry faced a second tough year for natural catastrophes. It recorded a loss of £2 billion ($3.7 billion) in 2017.

Former QBE CEO John Neal took over as Lloyd’s CEO in October and said he would place a priority on modernising the market, continuing an innovation focus led by predecessor Inga Beale.

Lloyd’s says the insurance industry needs to get closer to end customers and reduce costs across the distribution chain in areas where it is not adding value to customers, with acquisition costs comparing unfavourably with other sectors.

Discussion questions in the document ask what it would take to cut the cost of insurance placement in half and what needs to be done to make Lloyd’s more attractive to third-party capital.

Lloyd’s warns that threats from new and traditional perils are rising but insurance buying is not keeping pace, and the industry must “supercharge innovation” to create products and services relevant to customer needs.

“We have an opportunity to increase participation in the Lloyd’s market, attracting new business from existing participants as well as from those who do not currently work with the market,” it says.

The document suggests creation of a Lloyd’s Risk Exchange through which less complex risks could be placed in minutes at a fraction of today’s costs.

More information on the document is available here.