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Lloyd's set to update market on performance progress

Lloyd’s says improvements to the way the market operates will become tangible this year as it moves ahead with a blueprint to cut costs and overhaul its performance.

The London-based marketplace has highlighted priorities for this year, ahead of a Wednesday update on its Blueprint One plans for transforming the way it does business.

COO Jennifer Rigby says the setting of priorities has taken into account feedback since Blueprint One was launched last year and ahead of phase one activities which are due to start by the end of March.

Areas of focus include work on a complex risks platform, improvements for bringing coverholders onboard and changing the way claims are processed.

“These will really start to bring a difference to the market in 2020 and those are the things the market has told us they really want us to focus on,” Ms Rigby said.

Lloyd’s earlier this year said marine hull and international casualty binders will be pilot classes for a modernised syndication pilot as it works through various testing and proofs of concepts.

The Financial Conduct Authority has challenged Lloyd’s and the London Market to improve performance as they face increased competition.

The UK regulator said last week in an annual review of financial services that London remains the leading global insurance hub, but client perceptions that it is relatively expensive have been reinforced by the slow adoption of technology and complex distribution chains.

“Maintaining London’s competitiveness is not one of our objectives, but ensuring a well-functioning market is, and a well-functioning market is characterised by a competitive and sustainable business model,” the report says.

It notes Lloyd’s is developing two electronic risk placement platforms as part of moves to modernise the market and improve performance.

“There are efforts to improve expense ratios both in Lloyd’s and the wider London market, but questions remain about whether enough is being done to address the issue,” it says.

The FCA also says poor culture remains a concern in the wholesale insurance sector and threatens to undermine its broader standing.