Lloyd's CEO John Neal envisions anecosystem that is “altruistic by design” with an open architectureof interconnected platforms and services. (Photo: LukeMacGregor/Bloomberg)

Marsh & McLennan Companies, Inc.'s Rising Professionals'Global Forum 2019 opened in London, with approximately 700delegates attending the two-day event to hear from speakers on thecentral theme for the forum: adaption or extinction.

Lloyd's of London, the 330-year-old insurance market,faces a similar quandary in terms of its future.Addressing delegates at the forum, Lloyd's CEO John Neal warnedthat the market must evolve and evolve fast or risk driving itselfinto irrelevance.

“We're facing quite challenging headwinds,” said Neal. “Ourproducts simply aren't keeping up with the changing landscape ofrisks and we're not harnessing all of the new capital that'sknocking on the door.”

He also mentioned that the insurance industry was facing a talent crisisamid the increasing dominance of the tech sector.

“We are not yet seen as the desirable industry for young brightminds to want to work in, and is it any surprise when there are somany challenges in and around our marketplace?” asked Neal. “Weneed to ensure that inappropriate attitudes are eradicated andgiven everyone the chance of a rewarding career.”

Related: Here's how Lloyd's CEO John Neal plans to modernizeinsurance

No more business as usual

Drawing inspiration from Amazon, Neal said thedigital platform's highly customer-centric approach and ability toconstantly reinvent itself were key ingredients behinds its growthfrom a startup to the conglomerate it is today.

He thinks Lloyd's has a good base upon which to launch itsdigital transformation if it could leverage these attributescombined with its own unique characteristics. He says the buildingblocks are in place, but “now we have the challenge of unlockingand evolving a 330-year-old platform.”

He envisions an ecosystem that is “altruistic by design” with anopen architecture of interconnected platforms and services.Solutions currently being developed include a Lloyd's risk exchangefor less complex risks and a next-generation claims servicespowered by artificial intelligence. Change willrequire speed — two things notalways associated with Lloyd's.

“As a sector, our choice is to continue with business as usualand become irrelevant or change and realize and enormousopportunity in the world of risk. We have a once in a generationopportunity to lead the marketplace in delivering innovativeservices and solutions,” said Neal. “We can do that by leveragingand seizing the spirit of innovation that's always been at thecenter of the market and the trusted partnership and relationshipbetween the customer, broker and insurer.”

Related: Changing culture and mindsets in the insuranceindustry