There will be bumps in the road, but this could be a year Lloyd’s takes control of its future.
2020 is set to be a big year for Lloyd’s of London as it begins work on implementing the key initiatives proposed in Blueprint One.
We have already seen the Corporation take control of performance via the Decile 10 programme, which has driven clear improvement and demonstrated its ability to execute a challenging strategy while maintaining cross-market support.
However, in the next 12 months, the Corporation will extend that control by exercising greater power over all businesses that choose to operate within it, not just underwriters, but brokers, MGAs, alternative capital providers, technology providers, claims and loss adjusters – all of which are keen to claim or preserve their place in the ecosystem.
Its plans to acquire a financial interest in PPL signals a clear intent to directly control and manage the market transformation, positioning the Corporation to take full ownership of the decision-making and operation of most of the technology systems that will underpin market operations going forward. Control is important, because technology is the rock on which the market has foundered many times before.
So far, the Corporation has been astute in its consultations and has managed to keep market players on side. There is no doubt there will be bumps in the road, but there is a real sense that the majority understand the need for change and are behind its plans, challenging as they may prove for some.
These developments have the potential to lay the groundwork for a strong and competitive Lloyd’s market. The optics are good. 2020 should be the year the market takes decisive steps forward to secure its future competitiveness.
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