“We all know that Lloyd's has an extraordinary opportunity to grow in developing economies around the world; we developed Lloyd's Vision 2025 in part to address this opportunity”
Thus John Nelson and Inga Beale last week introduced a more detailed, revised version of Lloyd's Vision for its future.
Lloyd's Vision has gone through some changes since it's introduction in 2011.
Described as “changes in emphasis” they include an increasing focus on insurance (as well as reinsurance) business with Lloyd's saying it will increase its local presence to make access easier.
Of course the world in general is globalising and it doesn't take a highly paid strategist to tell you that economic power is shifting eastward, so creating access beyond London seems entirely sensible. Our recent assessment of the Singapore hub suggests that there is increasing local retention of business and that 'London' per se is becoming perceived as less important even by expat, ex London underwriters (truly 'going native'). So if this is right and repeated around the world, Lloyd's seems to be on the right track.
But beyond the practical aspects does the whole 'Vision' add up to anything more substantial?
While the 'changes of emphasis may seem subtle I believe that Lloyd's has actually set out a truly ambitious future in this revision. The phrase “brokers and coverholders will find it as easy to access Lloyd's as they would local market carriers." for example, is incredibly bold, regardless of whether it's achievable. In effect Lloyd's is saying that it will be an essential part of the global insurance industry, wherever that industry operates.
Someone once said that "performance lies in language" and the language shift in this document firmly sets Lloyd's future as being on the global rather than local stage and in so doing opens up its strategic options enormously. Nor is Lloyd's saying that London is unimportant, just that it isn't the 'only game in town' and needs to be an intrinsic part of a global market.
This revision also shows that Lloyd's is prepared to evolve its strategy and this is refreshing and positive from an institution that often seemed stuck in the past and beset by inertia.
Lloyd's reworked Vision definitely puts it 'in the game'. Words are important but now comes the hard part; how to deliver on the Vision?
2025 is just around the corner...