WTW’s ‘sleeves rolled up’ attitude post-Aon setback drew me to the firm – Lucy Clarke

WTW was in trouble. Most of the world had believed the Aon takeover was a done deal. 

However, in July 2021, Aon announced it was scrapping the acquisition bid amid intense regulatory scrutiny over market monopolisation. 

“A whole bunch of people had left the business. They didn’t want to be part of a merged business. We weren’t being invited to client tenders anymore,” explains Clarke.

“We weren’t doing reinsurance anymore. We’d lost a significant amount of business, and so it was an incredibly tough period for that group of people”.

Yet, adversity breeds strength, and the aftermath of Aon fostered a ‘sleeves rolled up’ culture that attracted talented insurance executives like Clarke.

Clarke’s career is steeped in insurance. It includes President of Marsh JLT Speciality and 22 years at JLT group in various roles. 

She joined as President of Risk and Broking in July 2024. 

Clarke enthuses: “One of the things that I’ve consistently said that was so attractive to me about joining here was to join a group of people who could pull off what these people have pulled off.”

Digital leaders

Following the failed Aon takeover, WTW launched a ‘leading digital strategy’, explains Clarke.

It was updated in December last year. 

The WTW broking platform, now operational in 18 countries, can seamlessly receive and structure data, create submissions, and run core models for market outreach. 

Currently, about 25% of premiums are processed through this platform, with expectations to increase to 90% in the top eight countries by the end of the year and full implementation by 2026.

WTW has developed Neuron, an advanced digital trading platform.

Clarke explains ‘think of it like an API connecting the broking platform to the markets’. 

The platform enables algorithmic underwriting and automatic follow-on rules. 

It should be ‘up and running’ during 2025. 

She says: “I think it’s important to remember we’re not envisaging some world where everything is done by a digital placement. It is just to make the transaction easier and smoother. And there’ll be different solutions depending on what segment of the market you’re in.”

Artificial Intelligence

Currently, WTW is primarily using AI to convert unstructured data into structured formats and to analyse policy documents. 

This involves comparing clients’ contracts with insurance products to identify any gaps in coverage.

Geoghegan said: “It’s always difficult to try and value. What are the terms and conditions actually worth? I suppose that would be something that’d be fantastic to get an AI to do.”

Clarke replied: “There are those capabilities for sure. We’re just monitoring it really carefully.”

Market conditions

The conversation then turned to the hard market. 

Underwriters believe they are prioritising underwriting profit and maintaining rate adequacy, with talk of writing for income subsiding. 

Clarke said: “I definitely think there’s still discipline in the market, but I think that the market’s being more reasonable about where it is and to make sure that clients get recognised. This has not been an easy period of time for them.”

MGA strategy

Another discussed topic was managing general agents, detailed in the December strategy outlook.

There is a perception that MGAs are cyclical. But Clarke stressed they are ‘here to stay’.

She said: “MGAs are providing an important role in the market for us. Specifically, we have our Verita MGA in the US. 

“We’ll be launching that in Great Britain and in Europe later this year, and I think that it’s a really important part of the strategy. 

“Our MGA strategy is sort of like niche products where there’s a scarcity of capacity and also a way to distribute our Willis proprietary facilities throughout the group.”

‘Very excited’ about reinsurance

Clarke told Geoghegan she was ‘very excited’ about the reinsurance opportunities.

In September last year, WTW revealed it would team up with Bain Capital to build a reinsurance unit.

This comes after it sold the reinsurance arm to Gallagher in 2021 for £3.25bn because of the Aon sale.

“We are very lucky to have Bain, who’ve been amazing to work with. They bring huge firepower,” Clarke says.

“I think we have a real once in a generation opportunity to build a reinsurance business of quality and scale.”