Lloyd’s and insurance technology provider Velonetic said they postponed a cutover phase to digital services, scheduled for October, citing safety and market readiness concerns.
The Velonetic board of directors and shareholders and the Council of Lloyd’s support the decision, Lloyd’s said in a statement.
“As we progress with delivery of phase one, we’ve faced challenges which have impacted our timelines, particularly with testing,” John Neal, chief executive officer, Lloyd’s, said in a statement. “Market testing of the new platform is progressing but running eight weeks behind schedule, driven by onboarding and integration issues. We’re confident we can resolve defects quickly, and encourage the market to maintain momentum with their own testing schedules.”
Neal said both Velonetic and Lloyd’s are committed to secure the cutover to Blueprint Two phase one digital services but “in light of these setbacks, it is appropriate to postpone the cutover.”
They will move ahead when “it is safe to do so, with a robust cutover, rollback and contingency plan in place, and that we are satisfied a number of key activities have been completed or are near completion,” Neal said. “Only then will we decide a new cutover date, informed by market feedback.”
‘Velonetic and Lloyd’s, with input from the market associations, are working through a revised plan and testing schedule, setting out the key activities that will contribute to a safe and successful cutover,” Lloyd’s said. “The new plan will be shared as it is developed.”
The Lloyd’s Market Association welcomes the decision to postpone “taken in light of the reality that delays in testing have meant that it is no longer safe to cutover in October,” said Sheila Cameron, CEO, LMA, in a statement.
She said the LMA encourages the market to continue to push for testing over the coming weeks and months, as and when the testing facilities become available from Velonetic.
“The London market is united in wanting this program to reach a successful conclusion,” Cameron said. “While this is taking longer than planned, it is important to remember that implementing digital processing services with Velonetic is the first step in achieving our vision of a digitized marketplace.”
The International Underwriting Association recently formed a new London Market committee to review progress on the adoption of new digital services under Blueprint Tww.
Blueprint Two, a single digital platform that is being established for processing premiums and claims, had a target date of October 2024 set for insurers to cut over to phase one of the new services, the IUA said at the time.
According to the IUA, a “Cut-over Review Committee” will review information about the readiness of the London company market, and its technology partner Velonetic, to make this switch. It will advise the IUA board “so that it can be assured there is no reason to recommend not cutting over to the new services.”
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