Lloyd’s impacted by consumer technology

Heightened consumer expectations and the broader reach of technology are having a significant impact on the commercial market, says Andrew Duguid, director of development at Lloyd’s of London.

Technology has broadened the choices in risk management, enabling for inhouse risk rating and application of financial “risk hedging tools” available through the capital and captive markets, Duguid notes. This was a significant issue influencing the restructuring which Lloyd’s recently embarked on. Already the market has enabled corporate investment, representing members from Europe, North America through to Bermuda. The drive for cost-efficiency has meant larger syndicates infused with corporate capital, “the ‘names’ which originally formed the capital of Lloyd’s now only represent about 25% of capital which is expected to decline further as corporate investment increases,” he adds.

While Lloyd’s will continue to primarily operate through the broker distribution channel, Duguid says the market is looking at opening access to other parties. And, he adds, “I expect from Lloyd’s side to see more use of Internet and e-commerce type business”.