A timely article by Ian Smith in the Financial Times yesterday. 

Transformation is reliant on far more than technology. In fact, that is probably the easy part and we know how challenging technology can be.  People are the main challenge as too often they are an afterthought in big projects. Their fears, their prejudices, past experiences, and scars from transformation projects where it is often stated only 10% or so actually succeed. 

And here is another factor.  

The crisis of confidence afflicting the London equity market has raised important questions about the growth environment for UK companies. The sense of treading water is not limited to the stock exchange, though as insurers and reinsurers fret about sluggish regulators and "one-size-fits-all" rules apply to anything from accidental home contents damage to cyber cover to complex CAT events cover.

Ian Smith FT

Roger Foorde, MD and owner at Lime Street Systems Solutions Limited mused recently about London Markets.

"Lloyd’s Insurance market – Blueprint Day of Judgement is Approaching (2 minutes read)
Not since Sir David Rowland (charman) and Ron Sandler (CEO) have the management of the Lloyd’s of London insurance market got closer to making any tangible changes to the workings of the market than do the present incumbents, Bruce Carnegie-Brown and John Neal.......

.... This is all now about to come together in a big bang! Previous efforts have been perceived to be more of a ‘big bung’ to now distant memory consultants, who one suspected didn’t know their Slip from their LPAN!
This must finally be good, but typically with the London market, doubts prevail. When actually will costs come down for clients? Do I need it after record profits this year? Global financial problems,because of the pandemic and war in UIkraine, have made just about everything more costly. Insurance is amongst the worst and if we all have a digital market, what happens next? Will a client in Outer Mongolia ask ChatGBT for Lloyd’s insurance for his cashmere factory?"

ChatGPT is a current example of the tension between innovation and good governance. 

"The Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority are getting new secondary objectives to facilitate competitiveness and economic growth. The government earlier this month issued a consultation on the kind of performance metrics and information the FCA and PRA should publish in relation to their new objectives. The London Market Group is urging regulators to publish a comparative analysis of how the UK is doing versus other financial jurisdictions, including the numbers of new firms approved, time taken to greenlight applications and rejection rates."

Ian Smith Financial Times

Innovation, change management, regulation and technology all must advance in unison if London is to retain its global dominance, the fintech and insurtech start-ups and scale-ups continue to thrive and insurers and reinsurers transform fast enough. 

The Blueprint Dayoif Judgement will be an early indicator.