“CEO Agenda 2025: Lloyd’s and London Market,” by Oxbow Partners provides strategic insights for insurance leaders navigating the evolving London Market, especially in the wake of a high-performing 2023.
As the current hard market matures, this report identifies six essential imperatives to enhance resilience, operational efficiency, and growth amid shifting market conditions:
- Market Bifurcation: With a shift towards a lead-follow model, insurers should define roles in a bifurcating market and establish an operational model optimised for selective leadership and followership positions.
- Delegated Authority (DA) Strategy: As DA’s share of premiums in Lloyd’s market approaches 45% by 2027, companies must develop clear DA strategies, optimise DA operations, and build robust technology foundations to streamline performance.
- Portfolio Resilience: With softening market signs, especially in property and cyber insurance, companies should build resilient portfolios, implementing mechanisms for early market softening detection and a structured approach to managing rate adequacy.
- Data Insights and Gen AI Adoption: The report emphasises advancing from basic data consolidation to real-time insights, recommending insurers adopt Gen AI for tasks like risk assessment and data analytics to gain a competitive edge.
- Talent Strategy: The evolving underwriting environment demands specialised analytical skills. A long-term talent strategy aligned with corporate goals will be essential to attract and retain the right expertise.
- Cost efficiency and transformation discipline: Cost structures need streamlining, particularly as the market evolves. Leaders should focus on sustainable efficiency by establishing transformation offices to drive strategic initiatives effectively.
Leaders in Lloyd’s and the London Market are at a pivotal point where strategic transformation will separate industry frontrunners from those who lag. Embracing digitalisation, Gen AI, and a tailored talent strategy will be crucial, especially as the market softens and requires more cost-effective, data-driven decision-making.
To explore these insights further and delve into actionable strategies, download the full report. This detailed guide equips executives with the foresight to navigate and thrive in 2025 and beyond.
