Lloyds of London – The Business Challenge

The London market could benefit from greater levels of digitization and automation.

The widespread usage of spreadsheets across the network was cumbersome and Lloyds required a partner that could convert this multitude of data into cloud-based systems using low code software.

  • Lloyds has over 150 insurers covering risks for the world’s biggest catastrophe claims.
  • Lloyds were receiving more and more data requests from overseas regulators and the expectations from those regulators was increasing – both in terms of the frequency of their data requests, and the size of the data sets that needed to be collected.
  • Approved data need to be shared to different governments and regulators in their own unique formats
  • For the Lloyd’s claims team to meet these data requests, a solution was required that would remove the arduous manual functions of collecting data, checking, and validating catastrophe data from Excel spreadsheets
  • Existing processes were time consuming inefficient and often inaccurate
  • Lloyds of London needed and automated Solution

 

Lloyds of London – Profile

Lloyd’s is one of the world’s oldest and most established international insurance and reinsurance markets in the world, transacting business worth billions of pounds in premiums every year. Lloyd’s is a broker market.

  • Incorporated: 1871 as Society of Lloyd’s
  • Employees: 2,042
  • Total Assets: As of 2019 this consisted of £52.8 billion of syndicate-level assets, £27.6bn of members’ “funds at Lloyd’s” and over £4.4bn in a third mutual link which includes the Central Fund.

 

The Optalitix Solution:

Optalitix developed a low code product that converted claims spreadsheets into a cloud-based system and gave insurers an easy-to-use interface for them to submit their reports.

Optalitix engaged with market members, both managing agents and third-party administrators to integrate them into the process and in so doing built a very successful portal incorporating feedback from the market.

  • The portal automatically and immediately validates data admissions from Insurers with visible flags appearing for any data errors. With data being checked upon submission, it gives the insurer the ability to correct any errors before it reaches the Claims Team, saving wasted time chasing insurers
  • Validation rules and flexible checking were also built in, Lloyd’s can amend these rules as risks underwritten change, futureproofing the portal.
  • The system is simple to use and very secure – having passed Lloyd’s security and penetration testing requirements.
  • The system was built in two months

Optalitix Models Value

Value to Lloyds of London

Lloyds were spending thousands of hours each year dealing with and validating catastrophe claims data and providing reports to regulators manually.

The new Portal removed the data validation bottleneck, finding invalid data and chasing Insurers for updated submissions significantly reduced.

Data is checked upon submission, at the source not the destination, with visual flags highlighting any invalid data.

 

Value to Insurers

Optalitix models creates a master template that combines all possible data fields and sends accompanying instructions on which fields need to be populated per event.

This has to reduces bureaucracy, and significantly limits the time spent on data entry.

Insurers have more capacity to better analyze claims data and to look for opportunities to improve claims performance.

 

Value to Regulators

Regulators as they are getting clearer more accurate claims data.

Regulators are also accessing better insight into total damage sooner by region, which is important considering the devastating impact that Hurricanes, firestorms and windstorms can have on communities.

 

Success and Outcomes

  • 110 External users on the system
  • 13000 Admin hours saved each year
  • $1000000 in saved revenue each year
  • $3Billion in claims processed in 2021

 

“Optalitix gave us a new ability to save productive hours by gathering data and allowing us to report on it to regulatory agencies in a very effective manner.
The time that has been saved has given us much more freedom to analyse claims data and look at how to improve performance, rather than just managing data flow.”
– Carey Bond, Head of Claims for the Americas