Blueprint Two shelved: What next for digital transformation at Lloyd’s?

Blueprint Two, the flagship digital transformation programme launched at Lloyd’s of London seven years ago, has been shelved indefinitely, according to market sources.

The initiative, developed in collaboration with Lloyd’s technology partner Velonetic and London market associations, had originally targeted full digital adoption by the second quarter of 2024.

That deadline was subsequently pushed back several times, most recently to a completion date before 2028.

The programme has now been paused and the team responsible for market engagement at Lloyd’s was disbanded at the end of last year, sources told newspaper City AM.

Blueprint Two was designed to modernise core processing infrastructure at the centre of the London subscription market, replacing systems that date back more than four decades.

Chris Jones, chief executive of the International Underwriting Association, said digital reform remains essential despite the pause.

“The IUA remains fully committed to advancing digital services for the London Market,” Jones said.

“Both as an association representing more than 80 member companies and as a shareholder of Velonetic, we will continue to work with our partners to develop a robust market infrastructure that can support the delivery of digital services,” he added.

“It is also essential that the existing processing infrastructure remains resilient and subject to continued assessment as we transition the market to digital services through considered, progressive stages,” Jones said.

Christopher Croft, chief executive of the London & International Insurance Brokers Association, said the complexity of the programme was always clear.

“It was always the case that the systems replacement at the heart of the Blueprint 2 strategy was going to be complex,” Croft said.

“There is a reason the IT at the core is 45+ years old. Delivering new multi-lateral net settlement engines is not easy,” he added.

“That said, it remains vital if the collective carrier back office is going to continue to support the subscription market in London,” Croft said.

“The continued delays to Blueprint 2 make it understandable that Lloyd’s, LMA, IUA and Velonetic might wish to reconsider the approach to achieving the necessary outcomes,” he added.

Croft said any rethink should examine whether large scale cross market programmes can succeed given competing priorities for skilled staff.

“We would urge the debate to focus on whether there are ways of introducing genuine commercial pressure for the programme to complete,” he said.

“A pause to take stock is an opportunity for some radical thinking and this should not be missed,” Croft added.

Ben Rose, co founder and president of reinsurance trading platform Supercede, suggested many firms have already moved on.

“Let’s be honest, if Blueprint Two has been shelved, most firms will barely notice,” Rose said.

“The real story is that the market moved on some time ago,” he added.

“Delays have been long enough, and messaging vague enough, that many participants have already unlocked budget that was tied to ‘wait and see’ strategies,” Rose added.

“If this is the end of Blueprint Two as we knew it, it doesn’t mean the end of digital progress,” he said.

“It means firms are finally free to choose their own stack, and to prioritise interoperability over standardisation,” Rose added.