Lloyd’s of London, the insurance and reinsurance market, has been a cornerstone of the global insurance industry since the 1600s. Historically, the insurance market has had a rich tradition, but now, this paired with continuing reliance on legacy technology often threatens to hinder innovation, and the same is true for Lloyd’s.
However, there are now signs that change is on the horizon for the insurance industry, according to a new report by technology company Advania UK. It says that a pipeline of digital reform and the promise of Blueprint Two, a strategy looking to digitalise the Lloyd’s market, aims to ‘deliver a new era’ for risk management.
While this suggests a more positive future for the insurance market, Advania warns that industry-wide standardisation may still be some way off. In the report, Advania reveals how CIOs are approaching this landscape, and how they are aiming to accelerate progress in a traditionally slow market.
Evolving with the times
Insurance IT leaders are facing increasing pressure to reduce costs and deliver more with less, meaning they have to reimagine how their organisation operates at every level.
However, this comes with a number of challenges – not least significant resistance to change in the very traditional insurance industry. But change is certainly required. In fact, a recent INJFE study reveals that insurers could still improve their financial performance by 40 per cent for cost efficiency and 70 per cent for profit efficiency.
Advania says that CIOs need to leverage their position to understand where tech can create the most value. Strategic partnerships with the right vendors can significantly support change management and boost adoption and project success.
The report also explores how IT leaders in insurance should approach AI. It warns them to ensure that each business focuses on delivering core capabilities at pace by defining the hype that still surrounds AI. This can be done by defining clear objectives and determining where AI tools can add real value, whether through role augmentation or automation of manual processes.
Insurers are looking to shift resources away from high-volume, labour-intensive work in order to free up more time to focus on the high-value transactions that have the biggest impact on their bottom line.
The report also urges businesses to avoid any scenarios where they deploy AI for AI’s sake, even when facing pressure from wider business leaders and investors. If leaders fall for this trap, they risk wasting money on initiatives that ultimately fail to deliver tangible results.
Throughout the report, Advania includes insights and opinions from experts in the insurance market, as it also delves into security, risk and compliance, as well as establishing a strong data strategy.
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