2020 – The Beginning of The Future at Lloyd’s

Darren Wray CEO at Fifth Step, a consultancy that specialises on the implementation of large-scale change programmes, information security and data exploration looks at what the next 12 months will hold for the Lloyd’s market.

2020 looks like it will be a very busy year for the Future at Lloyd’s teams as they start Phase 1 of their programme of change.

The Lloyd’s Blueprint One outlines what the organisation is planning for the next three years and phases of the programme. This includes where it intends to focus each year and identifies several sub-projects that need to deliver benefit, some of which will link and feed into one another as they build-out.

It is critical for Lloyd’s that they not only lay strong foundations in this first year of the programme but that they do so in a way that banishes the ghosts of transformation programmes past. It is, at least in my view, Lloyd’s last chance at a transformation of this type. After all, this is a competitive environment, with new players and technology providers who view the Lloyd’s and the broader insurance market as being ripe for a Uber-style disruptive force.

Phase 1 will start the eight areas of the programme; these are: Complex risk platform, Lloyd’s risk exchange, Claims solution, Capital solution, Syndicate in a box, Services hub, Data and technology. Those who like me have implemented large-scale change in enterprises will understand the true scale what needs to be achieved in the next 12 months if Lloyd’s is to meet its high-level plan and objectives.

Achieving such goals is no small task and will require a level of focus and organisation-wide investment and concentration that well above that Lloyd’s has achieved previously, the following are some of the ways that I believe Lloyd’s should be approaching Phase 1.

Easy Access To Data

As part of my role, I spend a lot of time speaking with executives within the London market. One of the most common complaints that I hear from these people is that they don’t believe that their firm is nearly as data-centric as it needs or should be. Many syndicates don’t understand or make the best use of their data.

Most organisations don’t employ information specialists who can help them. Some, of course, take advantage of a Data Officer service. The rest, however, tend to make do with what they have without realising that they may be missing opportunities or not discovering the golden nuggets beneath their feet.

Lloyd’s needs to make as much data available through this programme as possible, so those with access to a Data Officer will be able to differentiate themselves further.

An Agile Approach

Agile is an approach developed by the tech industry; it provides a way for multi-disciplined teams to work together to achieve more and at pace than more traditional methods. Its iterative approach allows teams to achieve goals and implement partial, but valuable business solutions and then iterate to build additional functionality. This approach reduces bottlenecks and will enable teams that are relying on deliverables from one team to be freed to make progress more quickly.

This approach, when applied to a programme of this size requires strong and capable change leaders who have the right experience.

Setting the Standards

To enable those working with or providing services to the London Market to be able to integrate and make available new services based on the Future at Lloyd’s programme as quickly as possible it is imperative that Lloyd’s is setting the standards as early as possible.

The setting of standards is, in my opinion, one of the most critical aspects of this programme, without it, adoption will be slowed, and vendor take-up will be stilted. Standards come in many different forms, but given the digital transformation focus this programme, APIs (the way that programmers can access Lloyd’s systems etc.) are going to be of vital importance.

Security and Privacy by Design

Programmes with tight deadlines that are very public are prime candidates for corner-cutting, this can lead to vulnerabilities and security flaws that, in some cases, maybe left undiscovered for some time. This is particularly important if as has been suggested that Lloyd’s is planning to create an API farm (banks of developers writing software that allows easy access to the Lloyd’s systems).

These APIs are also likely to be attractive to the hacking community who are, of course, interested in any systems relating to the financial services sector. This is where experienced change leaders combined with security professionals are required; they can ensure that through working with the QA and testing teams that vulnerabilities are tested and that best practised as part of the project DNA.