Lloyd’s of London is now completing over half of all insurance transactions electronically, as technology allows brokers, underwriters and insurers to assess risk, quote, bind and settle claims online without old fashioned paper-shuffling and delays. It has to be good news for clients and ultimately consumers too. Here’s some industry reaction;
Mark Eastham, CEO, Avantia
“The fact that Lloyd’s of London has taken such a clear step in this direction is indicative of where the industry is heading. The move has been triggered by losses incurred by natural catastrophes, and with climate change fast becoming a reality, firms need to manage risk much more effectively. Just two weeks ago homes in the Peak District were evacuated due to flood risks, and it’s mid-summer! Firms have to adapt to the new insurance landscape as it becomes increasingly non-standard.
Profits are being squeezed and the property insurance industry as a whole is looking to make savings and streamline business. Competitive pricing is essential. Underwriters can no longer rely on face-to-face negotiating to keep pace with challengers who are doing business based on quality data. The industry needs to learn from this automated approach and employ new data-driven techniques to achieve optimal pricing. It’s no longer a nice to have but a crucial part of profitability. Fundamentally, those who embrace an automated, data-driven & machine learning based system are more likely to be ahead of the curve.”
Ross Mayne, CEO, Munich Re Automation Solutions
“This is great progress, but the industry as a whole can be doing much more to employ advanced technology to improve operations, deal making and underwriting which can have a huge and positive benefit on the end customer experience. The industry should be ambitious in the technology it uses and plans to deploy – AI, Machine Learning and more are delivering real business benefits to those progressive enough to use it.
Technology can revolutionise this industry which has historically been slow to keep up with levels of electronification in financial services. Now is the time to move forwards.”