In my last post I talked about the threats to the London Market for commercial and specialty risk. This week I’ll look at how the market can capitalise on the opportunities for growth with a new vision and concrete initiatives to drive success.
Above all, the market needs a singular, compelling vision of the future role of the London Market to inspire action and consolidate London’s leadership. The vision needs to include:
- A unifying statement that articulates the objective of what needs to be achieved
- Key capabilities or components that will help deliver this objective
- A blueprint for how those capabilities will be developed and used to realise this objective
It is important to convince a broad spectrum of participants of threat, because everyone will lose if the market declines. Effective change management will depend on mobilising all the stakeholders and maintaining their involvement, understanding and commitment. Compromise to support a collective market interest will be essential as conflict is inevitable in a marketplace with competing interests and ambitions.
Once we have a collective vision in place, we will need to switch gears to focus on concrete initiatives to strengthen the London Market. As a group we will need to:
- Simplify the complex governance structures the market maintains. We need to form a more concentrated and directive governance structure—one that is better suited to drive fundamental market change
- Instill a programme mindset. This will be a significant undertaking, given the level of change the market as a whole needs to enact—a 3-5 year exercise. It will be important to structure a set of work streams, each of which combines initiatives focused on maturing a set of capabilities as part of an end-to-end plan. Work streams could include enabling innovation and refreshing talent, leveraging data for value, retooling regulation and the franchise, embedding collaboration across the market, and developing cost-competitive operations and infrastructure.
- We will need to identify and authorise protagonists to lead the programme. I believe this will take a full-time commitment, be it by secondment, hiring or the use of third-party providers. Key roles will include a programme executive, responsible for the overall execution and delivery of the programme, and functional and technical leaders, responsible for ensuring the solution aligns with the vision. Other key roles requiring a substantial investment of time and effort will include the programme sponsor and members of the programme steering group.
By collectively creating a vision for the future of the London Market and then developing concrete initiatives to achieve that vision, I strongly believe we can reinvigorate our position as the world’s premier specialty insurance market. But to succeed, we need to recognise the critical nature of market-wide interests and work together to overcome the challenges.
To learn more about Accenture’s perspective on the actions required to secure the future of the London Market, read London Matters: So What Next?