Earlier this week, Lloyd’s, the leading specialist insurance market, hosted a seminar to explore the benefits that technology can bring to the insurance sector.
Chairman John Nelson said that the London insurance market is “leading the way” in embracing the opportunities that technology can bring and in the opening remarks at the seminar said that in order to maintain growth within the global specialist market over the next few years, insurers have to adapt to change.
“We have a unique and world-beating combination of a globally dominant financial services and insurance industry, sitting alongside a rapidly expanding tech sector rivalling Silicon Valley. For Lloyd’s and other London insurers and reinsurers to maintain growth in the global specialist market over the next few years, we have to evolve and adapt. If we stand still, we will all get left behind,” Nelson said.
Investments in fintech have doubled since 2014 and reports suggest that the insurance sector represents a huge opportunity that has yet to see real innovation, making it a huge target for start-up disruption. However, the sector has tougher entry requirements than other sectors and has strict regulations in place such as the European Commission’s Solvency II Derivative.
Despite the challenges, start-ups are beginning to recognise the opportunities within the insurance sector, with entrants such as The Flow specialising in motor insurance and BoughtByMany, a smart service that uses internet crowdsourcing to lower insurance premiums.
“We’ve already seen how technology has had a massive impact on banking and other financial services and there’s no doubt that insurance will also be affected. I’m delighted that the London insurance market is showing leadership in this area and working together so that technology can not only enhance the way we do business, but also the solutions we offer our clients and thus ensure we remain the best in the world,” said Justin Emrich, CIO of Atrium.
120 insurers and brokers from across the market came together for the seminar which was held in the iconic Lloyd’s of London building, alongside representatives from London’s Tech City and other companies who are already benefitting from technological innovation
The seminar was organised to inform and consult insurers and brokers about the technological opportunities and challenges currently being considered by the London market group which is currently aiming to modernise and learn how best to use new technologies.
Lloyd’s Director of Operations, Shirine Khoury-Haq said: “The London market is developing a new operating model which aims to make the most effective and appropriate use of technology possible. As we do this, we are keen to both consult widely within the market and to learn from other companies and sectors which have already embraced technological change”