LONDON (Reuters) - Members of the Lloyd’s of London insurance market must increase the proportion of trades they process electronically to 30 percent by the end of the year, the world’s largest commercial insurance market said, as it seeks to cut costs.
Lloyd’s, which started life in Edward Lloyd’s coffee house in 1688, is trying to innovate as it has been losing market share, but progress has been slow. Its 80-odd syndicates insure a range of specialised risks, from oil rigs to kidnap victims.
Insurance staff traditionally carry their documentation around the 14-storey Lloyd’s building in the City of London financial district in briefcases - or slipcases.
“We must ensure that Lloyd’s and the London market move together and continue to prioritise ... modernisation efforts,” Lloyd’s chief executive Inga Beale said in a statement, adding the changes “will increase efficiency, reduce back office costs, and most importantly improve customer service”.
From the end of the second quarter, Lloyd’s syndicates must write no less than 10 percent of their business electronically, Lloyd’s said in a statement on Tuesday.
The target will rise over the following two quarters, to 30 percent by the end of the year.
Syndicates that meet the targets will get a rebate on their annual Lloyd’s subscription. Those that don’t will have to pay additional fees.
Reporting by Carolyn Cohn; Editing by Mark Potter