With the Insurer and Insurance Insider reporting on 22nd March of another delay to Blueprint 2 (Phase 1 moving to Q4 ’24) this blog now seems rather prophetic. The choices are becoming more stark; wait for the much needed market transformation that’s been delayed or start delivering benefits to your counter-parties now, and be better prepared for when Blueprint 2 is implemented.
The Lloyds market is on tenterhooks. Blueprint 2 offers a key milestone in the digitalising of arguably the world’s preeminent insurance market, making it “better, faster and cheaper for all participants”. The program is a complex, systemic transformation with far reaching changes to participants of all classes, types, actors and sizes. Once implemented, Blueprint 2 will create the digital specialty insurance market, delivering efficiency, appropriate automation and increased agility.
By definition, market changes need to be adopted by all participants. As brokers, underwriters, coverholders etc have developed their plans and responses that complexity has become clear, and LMA members requested a delay to the phased implementation. Phase 1 is due for July ‘24 and Phase 2 has now moved from October ’24 to April ’25. A wholly sensible approach that will give participants and market authorities time and confidence in a frictionless implementation.
To capture the benefit of Blueprint 2, it’s not just the exchange between Blueprint 2 connected systems that needs to change but also the in-house and backend systems and processes that organise and capture policy and claim details.
The need for change is compelling. Information is passed between brokers, underwriters etc in documents, schedules, templates, forms, spreadsheets etc. Unsurprisingly multiple formats, layouts, standards, technologies and systems have emerged. Additionally, of course brokers, underwriters and coverholders have their own preferred versions.
BUT, it’s easy to dismiss this lack of consistency. At its heart is something inherently valuable – a desire to understand the specific risk and place that risk at the best price available, in a competitive insurance market. The ability to customise and tailor this risk exchange is what sets Lloyds apart.
The transformation of large commercial and specialty risks, written at scale, can be achieved through a combination of digitalization to deliver standards led efficiency and customised client servicing, pricing and placement. This approach not only drives market efficiency but also delivers added value to clients.
To maximise the opportunity, brokers, carriers and coverholders need to consider how they intend to extract the content and standardise the processes to support adoption of both phases of Blueprint 2.
Our own experience of commercial insurance demonstrates the wealth of information available. Brokers documenting their client’s risk appetite to win and retain mandates, underwriters pricing that risk against available capital with specialist expertise in review and governance tasks. We’ve successfully developed 1000+ algorithms to extract information and meaning from 100,000’s of policy documents across 75 lines in support of multiple processes.
If you want to capture efficiencies by intelligently and sensitively automating out the drudgery without undermining your flexibility to serve, visit www.insurants.com or request a demo.
Have your say!
How successful do you think Blueprint 2 will be at transforming the Lloyds Insurance market and delivering benefits to members?
Cast your vote and leave a comment on the post below!
