Very pleased to have been involved in the production of the LMG's London Matters 2017 report that was released on Tuesday morning. While it (purposefully) does not talk specifically about the role of technology-based innovation it reminds us both of the sheer size and importance of the London insurance market, and of the fact that despite such size and pedigree the future is never guaranteed.
There are many things London needs to do to "remain relevant". One of these is to identify the role of technology – both in terms of hygiene factors such as better sharing of electronic data and removal of rekeying, and in the more 'modern' areas such as applying AI and mashing together diverse data sets
Various initiatives including the vitally important TOM programme are pushing the first of these at the right speed for the market. The innovation in the second area is being driven by good old capitalist forces with individual carriers and brokers working to understand these technologies and how they can differentiate the way the operate. Supported by organisations such as InsTech London, a broad range of investors and incubators, and the energy of the #insurtech entrepreneurs, it feels like there is real momentum here.
However both aspects are vital, and both aspects rely on each other. No point having a fancy aggregates management system handing non-static risks if you've still got data errors introduced when rekeying data the broker gave to you on paper. The London Market Innovation eXchange does an excellent job balancing the two needs; understanding the range of new technologies and working out how best to introduce the relevant ones to the broader London Market to balance the initiatives already under way.
A $91bn market place is never going to be the nimblest of beasts, but we can combined what we already do well with the energy that we regularly see at some of the excellent market events. The ideas and engagement we will see at this Thursday's LM TOM/WTW "4th industrial revolution" session and 22 May InsTech London/LM TOM "What's new in SME Commercial Insurance" event remind us why there is a good chance that the London Market can stay number 1.
The findings of the study, which are presented in a report called London Matters 2017 (a follow-on to a report published in 2014), provide fresh data that highlights areas of strength for the city’s commercial insurers—and areas in need of improvement. The report also highlights some of the innovation that is taking place in London, which has broader implications for the many global commercial insurance players with operations there.