Lloyd’s estimates brokers and insurers could collectively reduce costs by more than £800 million ($1.4 billion) if measures in its updated reform blueprint are adopted.

The savings, representing around a 3% reduction in operating costs, would come through greater efficiency, reduced bureaucracy and automation, according to the Blueprint Two document released last week.

Chairman Bruce Carnegie-Brown says the COVID-19 outbreak has increased the impetus for change and the blueprint provides a roadmap.

“The pandemic has demonstrated that Lloyd’s can adapt in a fast-changing environment,” he said. “As a market we have the appetite and energy to execute on our plans for the future, and in doing so we have the makings of real transformational change.”

The reforms aim to address disjointed processes and technology used in placement and claims and provide smoother end-to-end approaches, supported by enhanced use of data and improved digital systems.

Work will be funded by previously raised debt and Lloyd’s says given the complexity of the market, transition will be done “in a measured way over time starting within the next two years”.

Lloyd’s says the next stage aims to achieve approved and clear data standards that will support the next generation of placement platforms and solutions.

It is targeting a new Lloyd’s marketplace gateway and “super-fast” processing capability that will allow cover to be evidenced and issued in minutes, while creating technical accounting records.

The reforms also aim to achieve automated claims recognition and routing that will facilitate faster payments.

Lloyd’s says actions taken under Blueprint One have already introduced efficiencies and simplified the process of accessing products and services