London is considered to be the world’s leading insurance and reinsurance centre and over the past 300 years Lloyd’s of London has grown to become the leading specialist insurance market; however it is not immune to the challenges of operating in an increasingly complex and evolving world.
The London Market shares many of the same challenges as the insurance sector as a whole such as increasing regulatory requirements, pressure on combined ratios from operating in a low yield environment and an increasingly litigious culture driving adverse claims experience. Lloyd’s participants are also facing pressure to modernise and become more efficient, accommodate the influx of convergence capital, manage the forces resulting in depressed rates while also remaining competitive on an international stage.
The future of the London Market is likely to see participants streamlining the placement and claims process in order to maximise economies of scale, whilst also enhancing their risk and exposure management capabilities to aid portfolio optimisation. It is expected that many more Managing Agents will look to overhaul their Finance, Actuarial and Policy Administration functions in order to manage the increasing volume and complexity of data whilst providing real time business intelligence to assist risk selection and pricing.
At Baringa, we are helping clients in the London Market to maintain their unique characteristics while at the same time enabling them to take advantage of the emerging technologies, practices and disciplines which contribute to tangible benefits and add value. Baringa recognises that our London Market clients are increasingly looking to embed cultural change and respond to a rapidly changing environment, and have direct experience of working with Lloyd’s Managing Agents and Brokers to deliver large change programmes, critical process reengineering, programme management as well risk and compliance consulting services.