It is a disappointing fact that insurance lags the other financial services sectors in terms of the leverage of customer management and technology. What makes matters worse for the London Market is that within the insurance industry, London lags behind the protection market which in turns lags behind the general insurance market when it comes to the use of technology and in particular how technology is utilised what it comes to claims.
It is not all bad news, and we have seen some movement in the London Market on the implementation of technology from the Lloyd’s Exchange to accounting and settlement and, of course, the Electronic Claims File (ECF) initiative. The trends we are seeing in the global marketplace are being driven by the use of technology.
We are seeing growth diversification both in lines of business and geographically. The middle class in emerging markets represents the fastest growing segment of the market, and unsurprisingly this is where most innovation originates. The use of mobile communication devices are increasingly being seen in the loss adjusting and claims sectors. It is now more feasible for the loss adjuster to file their report from the site wherever it is in the world straight to the underwriter’s claims system reducing re-keying.
The London Market has a reputation for its innovative approach to the specialist risks they cover. If it looks to apply the same degree of innovation to the use of technology it has the opportunity to shake off its unwanted tag as the sector of the market which is still dragging its heels thus placing the customer first and driving significant cost benefits.
This article appeared in our London Market Newsletter. If you would like to subscribe to this newsletter, please contact Victoria.Jamison@FINEOS.com.