The London Market finds itself at a pivotal juncture, navigating the pressing need for modernisation and data standardisation amidst delays to Blueprint Two and the expansion of new technologies, such as AI.
These themes took centre stage at a recent TinTech panel, moderated by Jamie McDonnell, London Market Director at Guidewire. He was joined by Jon Clapham, Head of Enterprise Architecture at Ascot Group; Polina Konstantinova, Head of Underwriting Operations at Newline Group; and Terry Calthorpe, Operations Director at Gallagher Re. Together, they offered a comprehensive perspective on the dynamic shifts unfolding in the London Market.
Standardised Data is the Non-Negotiable Foundation for Digitalisation
Despite the disappointment surrounding the Blueprint Two delays, the panel acknowledged that its impact on encouraging foundational improvements (from data architecture to digitisation strategies and interoperability) is undeniable. The panelists strongly emphasised that, regardless of Blueprint Two’s pace, immediate action is crucial. They agreed on the necessity of achieving data consistency by adopting ACORD’s GRLC data standards and cultivating internal flexibility to facilitate digital trading. Standardised data, including GRLC and consistent payload structures, is a must if the market wants to achieve true interoperability across trading platforms and systems. Without harmonised data inputs earlier in the process, the potential for automation and digital processing will remain severely limited.
A shift in market dynamics was also highlighted: Brokers are increasingly pushing insurers to modernise, a reversal of traditional power dynamics. However, a challenge remains in many insurers’ reliance on post-bind placement platforms, leading to inconsistencies in data quality during the earlier stages of the process. On the other hand, brokers must digitise too if they want to ensure interoperability with insurers. Despite the challenges, the panel acknowledged positive developments, such as enhanced user experiences on platforms like PPL and Whitespace.
Targeted AI Use Cases: Start Small to Deliver Clear, Immediate Results
As the discussion shifted to AI, the panelists encouraged focusing on smaller, targeted use cases as effective and low-risk entry points for delivering quick value. Examples of AI use cases include automated data extraction from broker emails, intelligent population of underwriting screens, efficient triaging of declinatures, and automated document summarisation. These applications are proving successful in reducing data rekeying and generally streamlining the insurance lifecycle, leading to expanded capacity.
Critically, they also help build confidence within organisations that may initially be wary of larger, more disruptive AI implementations. While the aspiration for large-scale AI transformation remains on the horizon, practical, incremental deployments can already deliver tangible benefits.
True Digitalisation Hinges on Insurer and Broker Collaboration
The session concluded with a call for collaboration, recognising that insurers’ pace of digitalisation is intrinsically linked to their broker partners. Achieving data consistency across the entire value chain remains a significant obstacle. True progress, the panel argued, depends on brokers and insurers aligning their data practices as they embrace digital processes. Coordination is essential for driving market-wide change, especially with new platforms and integrations continuing to emerge. In essence, while the London Market's digital transformation is evolving at varying speeds, a clear focus on collaboration, data consistency, and small AI wins should pave the way for continued evolution.