Cultural reform and digitisation remain top priorities – LMA’s Cameron

Leadership transition at Lloyd’s must maintain performance, embrace digitisation and continue cultural change, all of which are essential for the market’s future, Sheila Cameron, CEO of the Lloyd’s Market Association, tells the Voice of Insurance podcast.

As Lloyd’s of London welcomes a new executive team, Sheila Cameron, chief executive of the Lloyd’s Market Association (LMA), says the biggest task ahead is to consolidate progress while ensuring the market remains fit for the future.

“The LMA exists to make the market a better place – for our members and for the market as a whole,” Cameron said, speaking on the latest episode of the Voice of Insurance podcast.

“Right now, our focus is on managing leadership transition, ensuring calm and continuity, and keeping sight of what we’re here to do: provide the best possible solutions for clients,” she said.

The handover at the top of Lloyd’s comes at a time of market strength, she emphasised, but also amid ongoing pressure to modernise systems and tackle longstanding cultural issues.

Cameron, who has led the LMA, representing Lloyd’s the 55 managing agencies in her role since 2019, said that performance must remain paramount.

“First and foremost, we have to protect what’s working – the strong performance focus, the move to outcomes-based regulation through the principles for business oversight, and the cultural improvements we’ve seen since 2019,” she said.

Innovation and risk appetite

Cameron said she wants the incoming leadership at Lloyd’s to bring clarity to the re/insurance market’s risk appetite. That includes greater transparency around delegated authority business – managing general agents (MGAs), also known as Lloyd’s coverholders – and the role of broker facilities.

“We know about 40% of Lloyd’s premium comes through delegated authority. But is that the right number? Should it be 90%, or 9%? Let’s have that conversation,” she said.

Capital innovation should also remain a focus. “London Bridge 2 and modified tenancy rights have already brought in new capital,” she said. “Now we need to explore where else we could go with this.”

On digitisation, Cameron called for a more modern approach to data provision. “We submit dozens of reports into Lloyd’s every year. Why not give them access to a data room and let them take what they need?” she asked. “We want Lloyd’s to be a recipient of output, not a prescriber of input.”

She acknowledged progress on standardisation had been mixed, despite the adoption of the ACORD Global Reinsurance & Large Commercial (GRLC) data standard.

“We’ve seen early adopters already benefitting, and I’d like to see more. But we shouldn’t need a mandate – the case should stand on its own merits,” she said.

“Interoperability only happens when we speak the same language, and the GRLC standard is that language.”

The challenge of Blueprint Two

Cameron defended the delayed rollout of the Blueprint Two digital transformation project, saying it must be delivered safely to avoid disrupting the market.

“Some of the systems we’re replacing are over 30 years old. The operational resilience demands from regulators mean we don’t have a choice,” she said.

Blueprint Two is “bookended”, she said, by regulatory pressure at one end and the desire to digitise the market at the other.

“This is not easy. We’re talking about £120bn in premium and claims transactions a year, 300 million messages, and 100 million documents…This is a once-in-a-generation transformation.”

Cameron confirmed that internal testing at Velonetic, the technology partner of Lloyd’s for Blueprint Two is underway, with market-wide testing due to follow later this year. She stressed the importance of reaching a point where “we can still pay claims the day after we turn these systems on.”

Culture and inclusion

Cameron was candid about the state of cultural reform in the Lloyd’s market, saying leadership intent is the key to progress.

“If your CEO doesn’t want to change the culture, ask them why not,” she said. “This is about talent – attracting the best people to our market. If we don’t reflect society and our client base, we won’t get the best talent.”

She cited recent Lloyd’s statistics showing a decline in female representation among the next generation of CEO candidates.

“Last year 18% of that pipeline was female. This year it’s 15%. We’re going backwards.”

She also pushed for better handling of misconduct cases, with an emphasis on fairness, transparency and lessons learned.

“Anyone who says they don’t know what bad behaviour looks like is kidding themselves,” she said. “We need processes that encourage people to speak up, protect victims, and ensure fairness to all involved. And we need to learn from every case.”

Asked whether full digitisation and cultural maturity were finally within reach, Cameron replied: “We’re inconsistent. Some firms are brilliant. Others have a long way to go. But when the leadership intent is there, it happens.”