BCG to help Lloyd's of London develop InsurTech startup lab

09 May 2018 Consultancy.uk

Lloyd’s of London has commissioned professional services giant The Boston Consulting Group (BCG) and innovation specialist L Marks to help the leading insurance market set up the Lloyd’s Lab – a proposed hotbed of disruptive InsurTech creativity.

Dubbed ‘the threat that inspires’ by McKinsey, InsurTech firms are trailing the path blazed by FinTech disruptors, which forced the hulking giants of global banking to digitise or fall by the wayside. The same radical reshaping that shook the finance world is now well underway in insurance, particularly in the UK where early adopters of disruptive technology are enjoying a run at clients without having to comply with a full regulatory framework.

With a history spanning more than 330 years, Lloyd’s isn’t ready to let InsurTech insurgents swarm over a marketplace that is ripe for disruption. The corporate body, comprised of a broad collection of corporations and individuals, will open the Lloyd’s Lab in September 2018. Developing technological solutions to help Lloyd’s market participants thrive in a rapidly changing industry will be the Lab’s primary purpose.

BCG will bring its deep market knowledge to the table, coupled with its practical experience translating digital savvy into expanded profit margins. The leading consultancy will work with the Lloyd’s Market Association (LMA) to identify and categorise a range of sector challenges. BCG will form the link between the creative forces operating in the Lab and the wider world of outcome-driven enterprise.

BCG consultants will harness Lab’s creative energy

The Lab itself will be chiefly managed by L Marks, which has successfully set up and operated more than 30 innovation labs since it was founded in 2012. The British innovation specialist will scour the planet for the most promising InsurTech startups, manage the Lab’s day-to-day operation, and establish mentoring and support mechanisms to encourage the scouted talent to flourish.

Partner at BCG, Justin Balcombe, said, “BCG is delighted to work alongside L Marks and Lloyd’s on this transformative initiative. With the right level of market input to ensure concepts in the Lab are relevant to the market’s needs, combined with the entrepreneurial ideas and creative talent entering the Lab, it will be very exciting to see what technological solutions can be developed that can bring about a step change in the market’s digital future.”

Founder and Chairman of L Marks, Stuart Marks, added, “L Marks is proud to be collaborating with Lloyd’s and BCG on the first ever Lloyd’s Lab. Many corporates are embracing innovation and to see an industry leading organisation like Lloyd’s do so through supporting startups validates this new way of working. I’m certain that we will find the InsurTech leaders of tomorrow.”