New research from NTT DATA UK, a recognised leader in consulting and IT services, shows that The London Markets, the premier marketplace for insurance and reinsurance against complex risk, is ready to embrace technological change and innovation in the digital era.
The research surveyed 100 individuals from a range of brokers, managing agents and syndicates and found the majority (78%) have a vision and digital strategy that is well communicated across the business. However, the research uncovered that executing on the strategy is difficult, with nearly half (43%) of those questioned feeling they were falling behind the competition.
The need for change is understood
The need for change is clearly understood by those in the London Markets, with two thirds of respondents seeing investment in innovation as key to success. Yet, while 50 per cent stated they are up-to-date in the adoption of the latest technology and processes in their industry, many are concerned by emerging competition: 63% of respondents identified that new entrants are more agile due to their technology; 69% of respondents also confirmed that if they do not invest they will be left behind.
Kim Gray, Head of Insurance & Head of Diversity & Inclusion at NTT DATA UK said: “The London speciality insurance market is the leading global hub for insurance and reinsurance, but that enviable position is under serious threat from other hubs and tech start-ups with a much lower cost base. They are smaller and more agile, making them better able to embrace technological change, and the resulting step-change, in improved customer service that smart new digital systems promise.”
ROI on change is still lacking and execution barriers prove problematic
The research confirmed that 85% of respondents saw little benefit delivered through the historic implementation of change. The same number of respondents stated they have not seen any significant cost savings by implementing new technology.
The challenges in execution include legacy technology (53%), inconsistent data (66%) and a lack of understanding on how to use that technology to an advantage (48%). Additionally, two thirds identified their change functions and personnel lacked empowerment and were unable to push through the change required for success.
Kim Gray concluded: “The research makes it clear that the London Markets understands the requirement of change and the majority have a vision and strategy in place to maximise on the opportunity the change agenda presents. However, having a strategy is one thing, but implementing it is quite another. The good news is, there are ways around these constraints, such as ensuring buy-in from all key stakeholders at all levels and managing for outcomes, not just activities. Moreover – when it comes to executing to reach your vision – rather than focusing on ‘big concept’ projects, The London Markets must focus on easy-to-implement solutions that target key business problems in an agile way. Continuous incremental change will get you where you need to be.”
The research report was launched at the History>>Made Faster event on 20th November at the Leadenhall Building. The History>>Made Faster research and event programme unites leading figures to debate and share insight into how London can maintain its place at the top of the global insurance market for the next 300 years.