Lloyds Blueprint 2: Reaction & Comment

Responding to the publication of Blueprint Two by Lloyd’s, Christopher Croft, CEO of broker representative body LIIBA, commented:

This is an ambitious set of proposals that could deliver a significant reduction in the cost base of London carriers – the single largest contributor to the cost of doing business here.  From a broking perspective, this can only reinforce why risks should come to London.

“But for us to be the market we all aspire to, we must ensure the enthusiastic engagement of all sectors of the market, and especially the company market.  Lloyd’s developing services just for its own use would be a backward not forward step.  Most business in London is placed across both Lloyd’s and company markets so a single set of processes for both is vital.  It is called Future at Lloyd’s but unless it is Future at London we will have failed.”


On 5th November 2020 Lloyds released ‘Blueprint Two’. Blueprint Two is the third instalment in the Future At Lloyd’s– the marketplace’s transformation programme initiated by CEO John Neal – following the original Prospectus and Blueprint One. The Oxbow Partners team has gone through the 104-page Blueprint Two document and written the below summary.

How did we get here?

Blueprint Two follows almost exactly a year later from Blueprint One, which initially proposed six solutions to transform the Lloyd’s marketplace.

To refresh your memory of the context & contents of Blueprint One, read our summary here.

Blueprint One update was released on 30 September 2019 to give an update on the overall programme and proposed solutions. It highlighted that funding of £300m had been secured, 1,000 stakeholders were engaged, and early stage proof of concepts e.g. Syndicate in a Box with Munich Re, claims solution prototype in collaboration with McKenzie Intelligence were conducted.

What’s being proposed?

Blueprint Two is about implementation and delivery. In a recent podcast, John Neale described it as “when rubber hits the road”.

The shift to delivery has also brought a shift in approach. Where in Blueprint One six specific workstreams were at the centre of Future at Lloyd’s programme, Blueprint Two has tied these initiatives up neatly in a bow and focuses on how they can – together – deliver end-to-end digital journeys for market participants.

This focus on end-to-end customer journeys forms the basis of Blueprint Two and initiatives. It focuses most of its attention on the two most common Lloyd’s customer journeys: open market and delegated authority, which together make up 80% of the value and 90% of insurance contracts placed at Lloyds. Other Lloyd’s customer journeys – reinsurance and automated placement – take a back seat in the document and will undergo further consultation in 2021.

Open market and delegated authority customer journeys outlined in the Blueprint are split into two transaction stages. The Blueprint calls these “getting covered” and “recovering from loss”; largely these align closely to the placement and claims stages of the value chain. As a summary:

  • Getting covered: Digital placing – for new business, endorsement and renewals – and digital processing – accounting, payment, reporting.
  • Recovering from loss: Digital claims notification and loss adjusting, and digital claims processing – accounting, payment, and reporting.

An open and flexible digital (“Digital Spine”) and data (“Data Store”) infrastructure underpin and connect “getting covered” and “recovering from loss” for each Lloyd’s journey.

Blueprint Two will run for two years, will enable savings estimated at £800m for market participants, and is funded by debt raised in early 2020.

Summary of Blueprint Two initiatives:

Blueprint Two bundles initiatives under customer journeys. It outlines four in the document which are split between Open Market & Delegated Authority business as well as between transaction steps as outlined above – “getting covered” and “recovering from loss”. There is an additional journey defined as digital processing which is the same for both ways of placing business. The following outlines the journeys using the same ordering from Blueprint Two.

  1. Open market “getting covered” initiatives:

Blueprint Two outlines several open market placement initiatives. As we understand it, there has been a shift in focus away from owning a single placement platform (PPL) to setting data standards that other market participants and vendors can operate to (e.g. Whitespace). Future at Lloyd’s will still develop the develop PPL platform but appears to have reduced the ambition from the grand replatforming and full scale development proposed in Blueprint One. The next generation of PPL will be rolled out and enhanced over 2021 and 2022, an immediate focus being on offering a more intuitive and compelling user experience.

Data-wise, Lloyd’s will introduce a “Core Data Record” (CDR) to capture placement processing data post-bind. This will provide a single point of reference for subsequent processes e.g. payment, claims, renewals to connect and use relevant data.

Placement support services will also be introduced, ranging from collaboration enablers like The Virtual Room to digital tools like a tax calculator, digital clause library, and “doc-check” to enable compliance with Lloyd’s standards. Digital placement processing will also be introduced via an intelligence Market Reform Contract and a Digital Gateway which will create and store the CDR and route the transaction for either digital or legacy processing.

  1. Delegated authority “getting covered” initiatives:

For Delegated authority, Blueprint Two outlines intentions to build an end-to-end platform to digitise elements of DA processes and provide digital tools to coverholders. Examples include digital onboarding through a “Delegated Contract and Oversight Manager” (DCOM), digital binder registration, and access to optional digital binder creation and placement and quote and bind trading platforms.

  1. Digital processing initiatives:

To enable end-to-end digital processing the Blueprint outlines several initiatives relating to data creation, centralisation, and storage. It will implement a Digital Gateway that will validate, enrich, route, store, and report data from placement to processing. This will create a Core Data Record (CDR) for each transaction which will be able to be used at later stages in the policy lifecycle e.g. claims. A Data Store will be established to update the CDR throughout the life of the risk.

  1. Open market “recovering from loss” initiatives:

Open market claims continues to be a significant area of investment for Future at Lloyd’s. Lloyd’s will introduce a new claims platform and seek to ultimately replace ECF and CLASS. It will introduce eFNOL, instant validation via connection to the risk CDR, a workflow triage process and platform, automation e.g. automated adjudication, and digital tools such as geospatial imagery and hurricane tracking to support claims adjusting.

  1. Delegated authority “recovering from loss” initiatives:

Unlike in open market claims, Lloyd’s are not creating a new process and will work largely with the existing DA model where the majority of claims are handled by Delegated Claims Administers (DCAs). They will however work to support DCAs through digital tools and initiatives including digital data capture, automatic workflow, and automatic funding and cashflow. Lloyd’s hopes this will move towards eliminating the need for loss funds and claims bordereaux in the future.


Lloyds tweeted the news yesterday, so far the only comment has been from an anti-coal industry activist account.

About alastair walker 9330 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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