London is among the leading specialist insurance markets in the world. However, regulatory pressures have increased, margins are falling in today’s low-yield markets, and litigation is driving an aggressive approach to claims by customers.
Lloyd’s of London and company market participants are under pressure to modernise, to make better use of technologies, and to operate in an efficient way. There has also been an influx of convergence capital – capital from third parties, alternative financing and capital markets – which is depressing rates. Overseas competitors are gaining ground.
Participants are streamlining their placement and claims processes to maximise economies of scale. They are also enhancing their risk and exposure management capabilities to make their portfolios more resilient.
Insurers are overhauling their finance, actuarial and policy administration functions to manage lots of complex data. They are using other real-time business intelligence to improve their risk selection and pricing.
We help our clients in the London market take advantage of emerging technologies, practices and disciplines that contribute to tangible benefits. We recognise that these clients need to embed cultural change to help them respond to a rapidly changing environment. This is the critical component of many of our large change programmes and process reengineering.