Lloyd’s of London is often playing a tight balancing act between tried and trusted methods and the need to keep pace with a changing world. This article poses some good questions on the impact of COVID-19 on the face-to-face aspect of Lloyd’s, one of the final bastions of a physical trading environment in an increasingly digitalised global market.
It is clear to see that this recent crisis will force the market to look at many of its more traditional practices and ways off working, which are not so easily adaptable to the remote working that we have been accustomed to these last few weeks.
As the insurance market continues to adapt to the challenges posed by COVID-19, Lloyd’s ability to trade electronically through its PPL platform seems to have taken on a new level of importance. Naturally, since its introduction in 2016, (PPL) has experienced some barriers, however how would the market be fairing now without PPL and the ability to bind risks remotely from living rooms? There is a huge opportunity to build on its recent success.
Additionally, we have seen the emergence of more and more broker platforms in the last few years - it's great to see companies like Dialogue closely interacting with PPL to deliver a seamless, efficient digitalised placing process. We can expect this trend to continue as physical interaction becomes more complex. It would be interesting to see whether these platforms can facilitate more efficient remote negotiations between brokers and underwriters, which previously have been deemed essential face-to-face discussions.
There is a great opportunity for Lloyd’s and market participants to create a 'new normal' - and now is the time to do it!
"Lloyd’s has a tradition of 300 years of face-to-face trading, which has served it well, but it is in danger of becoming a museum piece."