WTW conducted analysis of 49 syndicates that make up approximately 85% of the Lloyd’s market, asking firms to reveal where they are on their digital transformation journey in how they make decisions, underwrite, trade and configure their operating models.
The research, which classifies the syndicates into three separate groups, shows firms that have already started to invest in technological changes achieved a 6 point outperformance advantage over those that have been slower to innovate during the market’s ongoing digital transition. Specific examples of innovation include successfully leveraging data assets, decision support ecosystems and digital trading solutions
Key findings:
• A “Racing Ahead” group, making up approximately 30% of respondents, delivered an aggregated combined operating ratio (COR) of 89% in 2022.
• This compares to a “Mobilising” group, making up another 30% of the subset, that delivered an aggregated COR of 93% last year.
• Finally a “Getting Ready” group, that made up the remaining 40%, delivered an aggregated COR of 95% in 2022.
Richard Clarkson, Global Market Leader for Global Specialty, Insurance Consulting & Technology, WTW, said “In 2022, the market was still at a tipping point with a focus on how to deliver operational efficiencies. Since then, this analysis shows sufficient momentum has been built to be able to say that the market has now tipped. Insurance firms across the board are successfully getting to grips with data, achieving better insights into drivers of risk performance and embracing new ways to trade and operate”.
The results of the analysis are being shared on Thursday 15 June at WTW’s annual flagship Reshaping Insurance Conference in London, where over 60 leading insurers are gathering to discuss how the industry continues to be transformed. The theme for this year’s event is next-generation risk to capital solutions and how the London Market will work and trade differently as it continues to harness data and analytics into the underwriting and technical functions of organisations.
|
