Introducing Chunks & Scale. No – this isn’t a hip-hop act from the 90s…
Smart businesses across the Lloyds insurance marketplace developing their digital capability to meet the requirements of Blueprint Two know that it’s all about scale and breaking down the problem. Why?
Because if you chunk down the challenges of Blueprint Two then it means you can keep the lights on. You can keep doing the day job while weathering the storms of economic change, market cycles, regulatory change as well as the evolving nature of insurance and customer demand.
Then as you focus on how you scale your company’s digital capability to meet what’s needed right now from this market-wide transformation programme, you can keep a clear eye on how you achieve future success with the ability to lean effortlessly into future innovation. And let’s be honest here, the pace of technological change is fast – so ‘the future’ means months down the line rather than years!
In the words of our very own Bart Patrick: “’Chunk-down’ your change programmes until they are something you can realistically achieve.”
Let’s be honest, no matter what the size of an organisation, any transition to digital can be a little overwhelming. This really is about getting your ducks in a row as you consider data strategy, processes, people, compliance – before you even start thinking about the technology itself and how it will work for the demands of today as well as tomorrow.
Smart businesses have a fearless mindset which means they’re rolling up their sleeves and getting stuck into some serious prep to operate successfully in the ‘transformed’ marketplace. All while keeping an eye on the bottom line, knowing that by digitally evolving operations and processes at scale, costs won’t spiral out of control. And that’s the great thing about working at scale – you
can go as large or small as you want but you have to do your homework. It requires thinking about how you spend your ‘transformation’ budget to get the maximum return.
So where do you start if you want to be part of the pack that’s the pacemaker for change across the Lloyds and London market? What essentials do you need to focus on to reach the point where you know how you’re going to chunk down your digital programme to realise your Blueprint Two ambitions and what you’re going to scale? Here’s our “ten ‘must-dos’” to build the foundations for Blueprint Two success.
1. Undertake a thorough cost review
Don’t get started with any planning until you’ve thoroughly analysed your spending on IT and processes at a granular level, identified the processes you’re aiming to improve in addition to the
mandatory requirements and analysed what those improvements can be expected to do to your overall costs.
2. Identify one or two priority revenue opportunities
Speak to your business development teams to understand what processes are limiting their scope, and explore how improving technology can potentially open up new opportunities. Where can better
insurance administration systems and processes be deployed to open-up opportunities for upsells, or even new markets. But be realistic.
3. Appoint a Blueprint Two Champion
Appoint an internal Blueprint Two Champion and work with experts who can guide you through the process. This doesn’t have to mean expensive consultants – use your existing partners and tech vendors who will help make sure your team is on top of the process at all times.
4. Undertake a technology audit
Assess what technology you need to integrate with the Lloyd’s Digital Marketplace, as well as what you need to upgrade your internal systems and integrations with eco-systems partners. Address any gaps promptly to avoid obstacles down the road – but don’t get sidetracked.
5. Review your policy and claims admin software’s APIs
Get your tech provider to walk you through the functionality of their APIs and to demonstrate how it works with your own systems and that of existing and prospective partners.
6. Evaluate the software market and collate realistic costs
Fully review your policy and claims administration system, and make sure you have a solution that is designed to future proof your business. When choosing a new insurance software solution, resist the temptation to overly customise a system. A standard system, utilising built-in no-code tools for flexibility, will likely be continuously upgraded, reducing ongoing costly customisations and updates you have to solely bear the brunt of.
7. Choose new partners wisely and interrogate the small print
Opting for low-code tools can help you rely less on expensive IT services and become more self-sufficient. A good software provider will support you to future-proof your business by building your
internal digital capabilities. But make sure you interrogate the small print – don’t end up being tied to a never-ending journey of spiralling costs.
8. Document your strategy with clear responsibilities
Lay out your strategy in a way that will ensure you stay focused and manage your costs. Assign clear responsibilities for everything, and then govern it ruthlessly.
9. Create and follow strict governance procedures
Governance is so important to delivery success and cost effectiveness it should be mandatory in implementation. There can be a temptation to get on with the task of cutting code but without structure, responsibility and accountability, code and change becomes a source of cost not
business value.
10. Plan for change and build in time to reassess
A new platform can deliver success within a couple of months, but that’s not a given as you wrestle with “known unknows” and even “unknown unknows”, so it’s critical to build in time to reassess and
pivot if it isn’t delivering.
If you’d like to dive further into these must-dos and for more information on how to modernise for Blueprint Two, download our whitepaper on the 7 steps to prevent digital transformation costs from spiralling out of control.
