Increasing insurance industry modernisation bodes well for firms such as VIPR Solutions
The UK insurance industry has been under increasing pressure to modernise in order to run more efficiently but also to ensure it is primed to respond to increasing amounts of regulation at political level.
Over 2019, Lloyd’s reached a milestone of completing 50 per cent of its under-writing deals electronically, following over 300 years of the majority of insurers and brokers doing business face-to-face and through paperwork.
The modernisation has been part of a wider plan to reduce costs, and further measures are being lined up at Lloyd’s ready to be implemented in early 2020.
These include an electronic risk exchange to reduce costs further, which Lloyd’s hopes will eventually process as much as 40 per cent of its risks.
This move from a household name in the sector will likely come as welcome news to VIPR Solutions, who provide the Intrali data management IT solution widely used in the Lloyd’s market. Since launching in 2010, the firm has seen the insurance industry begin to modernise but was also quick to air made its views about the sector’s tardiness in doing so.
Former CEO turned chairman at VIPR Solutions, Bob Brown, told The Parliamentary Review: “Since launching VIPR in 2010, we have seen the insurance industry move away from primitive processes relying on manual intervention, such as Excel spreadsheets, using instead the latest technology in order to cope with ever-increasing vast quantities of data.
“Although the industry has been somewhat slow in moving with the times, it is under growing pressure to modernise its systems – not only to operate more efficiently but also to respond to increasing regulation.”
But with that pressure beginning to increase on the insurance industry, that outlook is changing, with Lloyd’s the latest giant to move with the times.
Speaking to City AM, Lloyd’s head John Neal said: “The marketplace’s halo has slipped a little bit over the last few years but we’ve begun to recapture it.
“Stakeholders said to us; demonstrate the market can perform and you tackle the cost of doing business.”
Brown told The Review: “The insurance industry is gradually embracing the benefits of standards-driven automation”.
As well as providing Intrali software, the major advance in the market that VIPR Solutions and partner firm ACORD Solutions collaborated on is the processing of bordereau data between the London and US markets.
Bordereau covers information on risks, premiums and claims transacted, and managing general agents, underwriters, and brokers acting on behalf of London insurance carriers must be able to automate data and transmit this information both quickly and accurately.
Integrating its Interali software with ACORD’s DeleGate platform, a solution was create to allow such frictionless and secure data transmission, hailed by Brown as a huge milestone.
“This is a major step forward for the market, which we are thrilled to deliver to the industry”.
With modernisation on the increase in the sector, the opportunities to innovate in solutions will only increase.