Lloyd’s of London, the world’s largest insurance market, has said its core priorities are to continue modernising the market and achieve efficiency savings as it revealed that its profits had more than halved.
In its interim results out today, the insurer announced pre-tax profits of £628 million in the six months to June 2010, a 52 percent fall from £1,322 million the same time last year.
“Six months ago, when we announced record profits for 2009, we said that 2010 would be challenging. This has proved to be true,” Lloyd’s said.
It added: “In the first half of this year, there have been more catastrophes across the world, including notably the earthquake in Chile and the Deepwater oil rig explosion than in any year since we began interim reporting.”
However, the company said that it is “making good progress against its own priorities for 2010”, which includes increasing the adoption of its Exchange service.
The Exchange service enables brokers, underwriters and IT suppliers to have a single point from which they can send and receive information securely, to a common, insurance industry ACORD (Association for Cooperative Operations Research and Development) standard. The messaging hub handles authentication, authorisation, routing, delivery and response management.
“We are focused on increasing use of the Exchange, a simple messaging hub, designed to process endorsements electronically, and more quickly than before.
“All managing agents and 80 percent of brokers (by premium volume) are now connected to the Exchange and we aim to process 100 percent of Marine endorsements through it by the end of 2010,” the company said in its interim report.
In other efforts to improve efficiency in the insurance market, Lloyd’s earlier this month announced that it was working with brokers to trial the use of Apple iPads in place of traditional paper underwriting documents.