London’s Insurance Market Missing Out

As the London market evolves through ambitious reforms, Paul Templar, chief executive officer at VIPR Solutions (“VIPR”), highlights the vital need to harness untapped data to drive more informed business decisions and boost profitability.

The London market remains committed to investing resources and capital to modernise its business transactions, minimise operational costs and optimise efficiencies. Both the London Company Market and Lloyd's have diligently communicated the objectives of their initiatives and the value they are set to generate. The industry's ongoing efforts to utilise technology to streamline internal data management and reporting processes continue.

Paul highlights VIPR's focus on the Delegated Authority business, representing a growing share of Lloyd's premium income. Alongside other aspects of Lloyd's, including the Blueprint II Strategy, VIPR and its customers ensure they comply with such regulations and requirements. This is instrumental in shaping the industry's approach to modernisation and continued success long into the future.

VIPR supports the market's efforts to implement the overall approach, but challenges linking the goals with the necessary steps to achieve them are prevalent. Data lies at the core of the market's future strategies. As an industry, we possess vast amounts of data, and the current plan involves maintaining a centralised hub to facilitate compliance with regulatory and tax authority requirements. This approach will enable the market to effectively meet the demands of governing bodies and stakeholders.

Nevertheless, as an industry, it is crucial to consider how this data can be effectively assessed and analysed to empower underwriters and actuaries, said Paul Templar. This will give them a better comprehension of pricing the risk they assume. We must ask ourselves the pivotal question: 'What is the purpose of this data?' We risk overlooking a substantial opportunity if its sole use is to fulfil regulatory and taxation obligations. Leveraging data from tens of billions of pounds worth of risks can significantly improve operational efficiencies within the market.

Imagine the substantial benefits for the market and its participants if data utilisation could boost underwriting performance by even a mere one percent. Despite the considerable investment of time and resources in developing central systems, there has been limited progress in leveraging that data for pricing accuracy. At VIPR, we've actively collaborated with industry partners to create solutions and have heavily invested in our capabilities. However, this commitment to data analysis and its potential advantages have not been widely reflected across the market.

By analysing the data gathered by the proposed central platform and making it available for market utilisation, stakeholders would likely be more willing to contribute information if they see clear benefits. Other financial services sectors recognise data as a significant asset and strive to uncover its true value. Both the London company market and Lloyd's should aim to accurately assess the true value of the data they hold. To do so, they must develop a deeper understanding of its value and explore ways to leverage it more effectively.

However, taking a look today, there's much to be proud of in the work done so far, with a clear vision to address market challenges. Now, the market needs to connect that vision with execution, keep everyone informed during the transition, and not overlook the operational benefits that data can provide.

Recognised as a leader in the Lloyd's and UK insurance market for delegated underwriting technology, we are attracting numerous Managing Agents who are moving away from other tech platforms. This shift highlights our proven ability to improve delegated underwriting business management. Our advanced solutions and deep understanding of the industry provide our customers with the essential tools to succeed and stay ahead in a changing market. As more firms see the clear advantages of working with us at VIPR, we continue to define standards of excellence and innovation, ensuring that our customers achieve and surpass their operational and strategic goals. Now is the time to make the right critical decisions to support your business with best-in-class technology.

Speak to us today at VIPR if you need a robust tech partner that can deliver of the promise.

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