Xchanging today unveiled its vision for the Lloyd’s and London insurance market. Members of the Xchanging senior management team presented their ideas to 120 senior market executives about cementing London’s standing as a leading global hub for insurance.
The presentation highlighted the importance of London becoming a more attractive business place in order to remain competitive for a broad spectrum of carriers and brokers. Xchanging said that if the right moves were made now London had the potential not only to make this happen but to be far ahead of other markets within five years.
Xchanging said that in order to achieve these goals the pace of change needs to be stepped up to make the most of potential business that could be flowing into London. Doing this could bring 20% more business to London, which would equate to an additional £7 billion flowing annually through the region.
The company also stated that the ‘modernisation’ required to attain these goals could be achieved in one of three different ways.
“We need to be brave and start this process now” urged Jim Sadler, CIO, Xchanging Insurance Services.
“This does not lead us down the expensive and perhaps untimely paths of the past, but rather allows us to make a start of the journey, while allowing businesses the flexibility to consider the next best steps to achieve the prize of the modernisation of the London market.”
Sadler demonstrated the options available to the market, depending on their own appetite for risk and cost. The three scenarios outlined were:
– To transform policy and claims together
– Transform policy first
– More gradual incremental change
The first two options are transformational and therefore attract a higher level of risk, however in all three scenarios the preparation for the next 12-18 months is identical. Which choice the market selects will depend on how much risk it is willing to take, the views on the market’s ability to absorb process and cultural change over a period of time, and how prepared the market is to fund developments.
Xchanging said they are doing everything they can to support the challenges facing the market by renewing its strategy, vision and leadership to help drive change in the market. The recent appointments of Geoff Unwin and Bill Thomas to the Xchanging Board, Andrew Binns to the Executive Committee, and Jim Sadler and John Niblett to the London Market technology team demonstrate this, they said.