The future is here

Patrick Jordan, Ed Broking, head of marine, says that the ability of the London market to respond to the huge personal and corporate challenges presented by the pandemic augurs well for the future of the historic hub of the international marine insurance market

How many psychologists does it take to change a light bulb? Only one, but the light bulb’s REALLY got to want to change… Two years ago, we were all trotting merrily along doing our jobs in a fashion which was the product of 300 years of evolution. The dress code was largely original, and contracts were still bound using scratch, ink and scratch, meaning that they were using real live handwriting. The building that we used was iconic and considered central to the ability to transact.

That said, there were indications that some ‘updating’ was not occurring.

On the small scale - ties in Lloyd’s had been made optional after one particularly hot summer, queues at boxes were longer as underwriting hours seemed to be more compressed, and one syndicate had shown thought leadership by putting a fridge stocked with soft drinks into the area where brokers waited.

On the larger scale, - Lloyd’s was trying to enforce the uptake of electronic trading and was seeking to redefine what the underwriting process could encapsulate. Looking back, it has to be acknowledged that attention within the underwriting and broking community seemed sporadic at best. Then – in the form of a global pandemic – the very essence of our market was challenged. No longer could we see our clients face-to-face. Perhaps more importantly, no longer could we discuss the needs of our clients face-to-face.

SOOTHING OIL

We couldn’t pour the soothing oil of a pleasant lunch or after work chat on the troubled waters of difficult negotiations. No social element remained, everything was distanced to handset, keyboard, mouse and screen. It appeared that the complicated in-person representations and negotiations which underpin the foundations of complex risk as it is placed in London would become so cumbersome that efficiency would depart, taking buyers along with it.

Yet here we are, in 2022, still going. In an enhanced fashion.

We’re blessed with an industry which requires no heavy manufacturing, has efficient electronic distribution lines, has been sufficiently regulated so as to ensure the product engenders trust within the general public and is still relevant to other businesses.

Despite significant concerns to the contrary, the fact that we could no longer gather in crowds within rooms to perform our paid duties proved to be less essential than was always thought.

Suddenly - almost overnight - the impact of advances in digital business practice since the turn of the century came into sharp focus. The ability to be mobile in work – indeed, to actually work consistently from home – was there for the majority of us. The systems in place to allow contract certainty meant the client could still obtain the same product via the same channels with the same confidence as before.

The future is here

BEATING HEART

Systems. They are the beating heart and pulsing arteries of our existence in so many ways. Every industry and part of life has them and without them we all fall down. Our ability to continue to function properly owes so much to such things as electronic filing, data capture, digital clause libraries, password-protected sensitive information, slips and certificates templated and stored for ease of amendment and dispersion. Placing Platform Limited, TradEd, WhiteSpace, Cascade, Concur, PowerBI (and many other such names) are now all daily drivers. How fortunate we were not to have to start from scratch! How quickly we came to appreciate that some form of the future really had been seen by those who had devoted themselves to market digital interface structures. There’s another system which stood the test and made this world keep turning. I must add a personal thank you to each client, underwriter and colleague who answered when I called or responded when I emailed.

The greater the complexity of any situation the more

“We’re blessed with an industry which requires no heavy manufacturing, has efficient electronic distribution lines, has

been sufficiently regulated so as to ensure the product engenders trust within the general public, and is still relevant to other businesses.’’

Patrick Jordan, Ed Broking

communication is required and the personal relationship element of what we do cannot be underestimated and must not be underappreciated.

NOW WHAT?

And now what? The signs are that lockdowns and extended periods of working from home are no longer the basic experience. Most of us are back on trains and in offices (for most if not all of the traditional five days) and while we cannot say that other Covid variants won’t evolve or other viruses won’t emerge, we seem to have come to terms with life in this petri dish and are determined to press on. In amongst all that, we in the UK have undergone an exit from Europe which has thrown hurdles up with business transactions that were previously mundane. Confusion in the first quarter of 2021 was significant in some areas but pragmatism has generally won through and solutions have been found.

THE FUTURE IS HERE AND IT LOOKS BRIGHT

While there are many factors which have enabled us to reach this point in good health, the fact that every single industry participant was affected at the same time is what created the environment for everyone to engage with the same issues in united fashion. This is a very unusual situation (normally it requires war- like conflict, which perhaps this was), and we have seen how valuable it can be for the collective health when all parts of the body mutually react.

FORGED RELATIONSHIPS

commerce stand the test of time and distance. We’ve learned that colleagues support each other even when it’s impossible to meet for a chat in the kitchen area. We’ve learned that the systems which pump the oxygen around our industry can get the job done satisfactorily. We’ve seen that those at the beginnings of their careers within it can grasp the technology without demur and can use a phone to talk about business. We’ve seen that work doesn’t have to involve five days a week in the office and that there are times when it can be right to prioritise those closest to us over the latest email which just arrived. We’ve learned that a daily walk just for the pleasure of being outside can make a real difference to productivity. We’ve had it confirmed that this is an industry to have confidence in and that as the current custodians of it we have the responsibility to engage with how to shape it for the years ahead.

This will involve further development of electronic trading. That is the colour and taste of what is ahead of us and we must grasp it and support those who will move it forward. Algorithmic engagement will grow and we must shape it to the best needs and purposes. Office environments will become more fluid and we must push along with the current. Organisational structures will adapt to environmental and societal changes and must wrap themselves around the new patterns to ensure the best outcomes.

If we can carry forward with us the fortitude to endure difficult situations, along with the willingness to address them and the agility to adapt, survive and improve, then we will continue to serve our clients in just the same meaningful way.