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Lloyds of London announces radical modernisation plans
The 330 year-old insurance market, Lloyd’s of London, intends to shift a large chunk of its business online, as part of radical measures to modernise and pull in more business.
Chief Executive John Neal laid out a six-point strategy, including splitting the market in two automated exchanges, with more standard contracts arranged on a new online system that would allow risks to be placed “in minutes at a fraction of today’s costs”. The other platform would be used for more complex risks, which would still be conducted in person.
Neal said the plan could cut costs by 10%, which equates to about £1bn. He added that the cost of buying insurance through the market could be halved from 39% of the premium to 20% within five years.