COVID-19 accelerates digital transformation of Lloyd’s
Monday, 08 24 2020, Category: Insurance and Reinsurance, Country: United Kingdom
The COVID-19 pandemic presents one of the most unprecedented challenges the Lloyd’s and wider London Market have faced.
A healthy and vibrant insurance industry will be key to helping individuals and businesses alike navigate the uncertain times ahead.
The industry’s pandemic-related insured losses are expected to reach $107 billion in 2020 and Lloyd’s expects to pay between $3 billion and $4.3 billion (£2.5 billion to £3.5 billion) in insurance claims related to COVID-19. (This is comparable to the $4.7 billion in claims following the 9/11 terrorist attacks and the $4.8 billion relating to hurricanes Harvey, Irma, and Maria of 2017.)
Despite the challenges, though, the pandemic has also kickstarted operational and societal changes that have showcased that the market can adapt to a more digital environment.
Back in March, Lloyd’s of London closed its underwriting room for the first time in its 330-year history in response to the COVID-19 outbreak. A traditionally face-to-face market has had to turn entirely digital almost seemingly overnight, and has prioritised many of its planned digital enhancements – part of its Blueprint One strategy – which includes improving electronic placement, delegated authority services, and claims processes.