On 30th September Lloyd’s of London published their vision for the Future at Lloyd’s. Here at r10, we have undertaken a detailed study of the contents of Blueprint One and in the seventh of a series of bite-sized articles look at the proposals for a services hub and how it may impact your business.
What are the proposals for a services hub?
Lloyd’s will extend its value proposition for market participants beyond today’s key offerings of:-
- Chain of security & strong market rating
- Global licensing
- Physical infrastructure
- Performance management
and build further, value-enhancing central services, including:-
- Flexible access to advanced technologies
- New product & innovation accelerators
- Unique data & insights
- Scalable business support services
The Services Hub will be the mechanism that identifies, develops, manages and monetises central capabilities on behalf of the market and will deliver via a common services portal to simplify access via data standards and API’s.
What are the main components?
The services hub will form a central component of the new Lloyd’s ecosystem, and as can be seen below, underpins the transition to a modern, data-led marketplace.
- Services portal
The services portal will provide a single access point for market participants to find and subscribe to services that are of interest and available to them. Supplier performance metrics will be available for review. - Service design & management framework
The Corporation will develop the Service Management Framework to ensure that consistent design and technical standards are met by participants within the services portal. SLA’s & KPI’s will be set and monitored, as will any dependencies on other participating services. - Accreditation
The Corporation will control the accreditation process for new service providers. - Data analytics & insight
New services will be provided that utilise the pool of data from the risk exchange and claims solution (no mention of the complex risk platform) as well as other accredited data sources. - Business support
KYC, AML and sanctions checks capabilities (with others TBA) will be provided as part of the services hub. - Innovation & Lloyd’s Lab
The corporation will expand the Lloyd’s Lab, and provide a proportionate regulatory environment to promote innovation. - Supplier services & data
The services hub will provide connections to approved, external service suppliers, such as Loss adjusters, catastrophe response teams and other professional services. - Existing Market Services
The existing market services underpinning the current Corporation value proposition will remain.
Will these evolve over time?
Yes, Lloyd’s are exploring novel, added-value services, such as “Risk Forecasting”, giving early warnings for natural perils and political risks and to look towards providing highly coordinated responses to significant events.
Will the use of the services hub be mandatory?
This is still under review; however, it is likely that some services will be defined as optional & others mandatory. Lloyd’s will seek to monetise the provision of these services.
What is the proposed timeline?
How will the new Services Hub impact your business?
Lloyd’s intend to expand their value proposition through the provision of a wider set of services and by accrediting external suppliers to ensure quality and connectivity standards are met.
There may be opportunities to achieve savings through participation in central services, such as sanctions checks, however how this will work for business placed outside Lloyd’s is not clear, so may not prove to be a workable solution for all market participants.
Having access to the data from the risk exchange and claims solutions when designing innovative products may be an attractive proposition, however, there are likely some questions of ownership of data to be resolved if this is to be made available.
The potential for novel, market-wide responses to impending losses and delivering coordinated approaches to catastrophe losses is exciting and could lead to a real positive differentiator for the Lloyd’s market.
How r10 can help
With our in-depth London Market expertise, r10 is uniquely placed to help guide your organisation through the Future at Lloyd’s change programme and over the coming weeks will be updating our blog with insights and guidance on what the changes may mean for you.
Please get in touch for more information on how r10 can help you prepare to play your part in the market of the future.
Read the next bite-sized article in our Bite-sized series “What is the strategic intent for data?”, which is the eighth out of the twelve proposed Future of Lloyd’s capabilities.
Author: Chris Carney