© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Lloyds Blueprint Two: How Third-Party Data and Software Providers Can Help the Insurance Sector to Release This Value
Posted 16th January 2023

Lloyds Blueprint Two: How Third-Party Data and Software Providers Can Help the Insurance Sector to Release This Value

The Lloyds of London insurance market is inarguably one of the world’s oldest and least modernised groups and it is having to re-think the way it interacts with customers and turning to digital. This is a prime example for the rest of the sector that it is time to wake up, especially in light of Lloyds Blueprint Two- Lloyd’s marketplace transformation programme.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Lloyds Blueprint Two: How Third-Party Data and Software Providers Can Help the Insurance Sector to Release This Value
Legacy Systems

Lindsay Lucas, CEO, Software Solved

However, these industry-wide changes are worthless unless insurance organisations are ready to engage, consume it and unlock the benefits it presents

The Lloyds of London insurance market is inarguably one of the world’s oldest and least modernised groups and it is having to re-think the way it interacts with customers and turning to digital. This is a prime example for the rest of the sector that it is time to wake up, especially in light of Lloyds Blueprint Two– Lloyd’s marketplace transformation programme.

The insurance industry relies heavily on legacy systems and has been slower than some industries to adopt modern technologies. This makes it difficult to stay competitive and offer an experience on par with the expectations of their customers. Many insurers are functioning on outdated legacy systems, like old technology stacks and neglected architecture. While some national insurance companies have followed the direct-to-consumer trend, many insurers haven’t begun modernising or don’t know where to start.

The longer they wait, the harder they’ve found it to support these legacy systems and attract and retain large market segments with higher product expectations. Insurtech start-ups who have fully embraced a personalised digital experience are taking advantage and rapidly acquiring market share. New markets in other countries are also directly competing with the Lloyds market and like new insurance firms, these markets come digital first.

The need to modernise the insurance industry is critical. However, several challenges can prevent these companies from jumpstarting the modernisation of their legacy systems.

 

The Challenges

Talent Acquisition: To migrate from a legacy system to a more modern infrastructure, organisations that understand the legacy technology and are aware of the business logic embedded into these systems are critical. Access to talent with experience in legacy systems can pose a serious obstacle as people retire.

Failure to Adopt Remote Working: Compounding the talent acquisition problem is the fact that many legacy insurance companies are not well equipped to support remote workers, particularly since the pandemic. Because of the prevalence of on-premises legacy systems, it is difficult to securely provide seamless remote access. Moving to cloud-based systems will ease these pain points.

Hesitancy to Embrace Cloud Computing: Legacy insurance companies rarely have staff with experience and expertise in cloud computing, and therefore are hesitant to embrace it. Typically, they often believe that cloud computing cannot be properly secured or meet regulatory requirements, which usually is not true.

 

The impact of legacy systems

The impact of not modernising means insurers’ project deadlines will not be met. Had insurers migrated to a modern architecture earlier, these risks could have been mitigated and thereby significant increasing the odds of projects being successful. More technological challenges will arise the longer insurance companies wait to modernise, and the broad impacts of these obstacles will continue to grow.

Lloyds Blueprint Two is the third instalment in Lloyd’s marketplace transformation programme. It is expected that in two years’ time Lloyd’s and the London Insurance Market will be looking at the new beginnings of a digitally enabled marketplace, integrating risk placement with automated premium accounting and claim settlement. This is a big step towards a data-first market and huge milestone in this ambitious end-to-end transformation programme

However, since the announcement of Blueprint Two, Lloyd’s has postponed two open market milestones scheduled for Q3 – the provision of API specifications for a new digital gateway and the build of a proportional treaty system. Even though necessary, this still causes further delays.

 

Third-party data and software providers can help the industry to engage

Furthermore, all these industry-wide changes are worthless unless insurance organisations are ready to engage, consume it and unlock the benefits it presents, critically, in collaboration with one another. Third-party data and software providers can help release this value. Third parties are becoming a fundamental component of the sector, creating room for insurance institutions to focus on strategy, innovation, growth and development, operational efficiencies and living up to the growing demand from customers.

The whole of the finance sector needs to look at third-party software providers that focus on an adaptable approach to change so that value is released on an incremental basis, helping finance companies to tap into their full potential to remain and gain relevance in the future. The right tools, using the right third-party support, can create a new foundation of extensible data on which a new stack of flexible, agile services and tools can be purpose-built for what the insurance sector needs to do today.

Third-party data and software providers are able to help the sector to adapt to the Lloyds Blueprint Two transformation quickly, helping them to understand what their customers want and provide a trusted service ensuring that they prosper.

Categories: News, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Israel’s RR Media acquires Eastern Space Systems in Romania
M&A
06/05/2015Israel’s RR Media acquires Eastern Space Systems in Romania

RR Media (NASDAQ: RRM), formerly known as RRsat Global, a leading provider of global digital media services to the broadcast industry, has announced the acquisition of Eastern Space Systems (ESS) in Romania, a privately held provider of content management and

Read Full PostRead - Eye Icon
PVD Training J.S.C – The Best Offshore Safety Training Facility
Innovation
08/06/2016PVD Training J.S.C – The Best Offshore Safety Training Facility

PVD Technical Training and Certification Joint Stock Company (PVD Training) is a world leading provider of training and certification, manpower solutions and marine technical services mainly to oil and gas clients.

Read Full PostRead - Eye Icon
Equistone Partners Europe Closes Fund V at €2bn Hard Cap
Finance
22/04/2015Equistone Partners Europe Closes Fund V at €2bn Hard Cap

Equistone Partners Europe Limited (“Equistone”), one of Europe’s leading mid-market private equity investors, today announces the successful final closing of Equistone Partners Europe Fund V (“EPEF V”) with total capital commitments of €2bn.

Read Full PostRead - Eye Icon
Polaris and Sealing System Enter Partnership
M&A
19/04/2023Polaris and Sealing System Enter Partnership

Polaris, the Nordic mid-market private equity investor, has acquired a majority shareholding in Sealing System – a Scandinavian supplier of intralogistics and full-scope automated packaging and palletizing lines.

Read Full PostRead - Eye Icon
360 Feedback For Law Firms – Finally Fixed
Legal
08/09/2020360 Feedback For Law Firms – Finally Fixed

With the help of two UK consultancies, law firms are starting to understand that 360-degree feedback should – and can – be better.

Read Full PostRead - Eye Icon
Benefits of Using a Load Board for Successful Freight Management
News
18/09/2023Benefits of Using a Load Board for Successful Freight Management

Timely deliveries and efficient operations are paramount in the freight industry. To that end, load boards emerge as the digital highways connecting shippers, brokers, and truckers. These platforms, often overshadowed by the physicality of trucks and cargoes,

Read Full PostRead - Eye Icon
RSM US Adopts Stellar Cyber’s Open XDR to Enhance Managed Cybersecurity Offering
Innovation
28/02/2024RSM US Adopts Stellar Cyber’s Open XDR to Enhance Managed Cybersecurity Offering

Managed security services provider RSM US has announced that the company has begun to leverage Stellar Cyber’s open extended detection and response (“Open XDR”) platform to simplify the way it delivers cybersecurity coverage for its customers.

Read Full PostRead - Eye Icon
New product Increases Engagement In Games
Finance
06/08/2015New product Increases Engagement In Games

Mobile Engagement Company First to Unite the Power of Predictive Analytics and Mobile Messaging to Target Key Player Groups, Generating Impressive Results Including 11% Decrease in Churn, 18% Increase in Number of Sessions and 50% Increase in Revenue.

Read Full PostRead - Eye Icon
Guide to Monaco Residence by Investment
News
04/10/2022Guide to Monaco Residence by Investment

A Monaco residence by investment is one of the safest and most secure investments property investors can make. Find out more about becoming a Monaco resident.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow