Lloyd’s of London has unveiled what it calls a "bold new strategy" that could shape the future of the world’s (re)insurance market.
The proposals are focused on delivering higher quality risk protection for its customers, it said.
The overhaul will see costs cut and the market split into two, with a greater emphasis on online deals.
The Financial Times reported that Lloyd's has been facing pressure to change following costly natural disasters, high expenses and overseas competition.
The aim is to simplify access to the global market, Lloyd's said.
Work will begin on delivering the new ideas in October, with some expected to be operational early next year.
There are six new elements to the revamp, it said.
The first will see it introduce a platform for complex risk.
This will enable "efficient digital placement of the most difficult-to-cover risks," it said.
Lloyd’s Risk Exchange will handle the less complex risks to ensure they can be placed in minutes at a fraction of today’s costs, it added.
It is also focusing on flexible capital that can "access a diverse set of insurance risks on the Lloyd’s platform," Lloyd's said.
"Syndicate-in-a-box"
Lloyd's is also devising something it calls a "syndicate-in-a-box", which offers a streamlined opportunity for new products and business to be brought into the market.
The claims service will be updated and an ecosystem of services that helps all market participants develop new business will be introduced.
CEO John Neal said: “Lloyd’s unique attributes – the ability to access unparalleled underwriting expertise, financial security and market access all in one place – are more relevant today than ever.
"However, a dynamic risk environment combined with rapid advancements in technology have fundamentally changed the world. Lloyd’s is changing too, driven by a desire to provide the best (re)insurance products and services available anywhere."
Chris Croft, CEO of the London & International Insurance Brokers’ Association (LIIBA), added: “At LIIBA we have welcomed the very collaborative approach that Lloyd’s has taken to drawing up these ideas and in seeking our help.
"We share a common central objective: a strong, vibrant, innovative Lloyd’s market must be a key part of the offering we make to our clients. The ability to find cover for clients that is simply not available elsewhere has always been at the heart of London’s unique offering.
"We must ensure it retains and grows that ability, and we look forward to discussing what happens next.”
Bronek Masojada, CEO of Hiscox, said: “These initiatives remind us of Lloyd’s centrality to the global insurance market and its determination to remain central to it as the world evolves.
"We look forward to working with all our Lloyd’s colleagues to bring these ideas to realisation.”
