Lloyd’s of London Creates E-Commerce Plan

Lloyd’s of London said it is launching an electronic-commerce initiative with the International Underwriters Assn. aimed at saving hundreds of millions of dollars by increasing the efficiency and competitiveness of the world’s largest insurance market. Introducing e-commerce into Lloyd’s business is the first in a series of initiatives between the two sides of the market aimed at cutting costs and defending London’s position as the world’s premier specialist insurance market. The move is an attempt to modernize the 300-year-old specialist market so it can compete in the developing global electronic environment. The future of Lloyd’s of London looked bleak during the 1980s and early 1990s after it suffered losses of $12.5 billion. Since then, Lloyd’s has struggled back to profitability, fighting falling margins and mounting competitive pressures. The e-commerce plan, it is hoped, will increase speedy payment of claims and provide worldwide electronic access to brokers.