London: Outsourcing - Ringing the changes.

(From Reinsurance)

Byline: Jeff Ward, a director at TriSystems, the specialist supplier of IT

A few months back (Reinsurance, August 2003) I suggested that the gathering momentum of outsourcing in the London insurance market would eventually bring about major change, leading ultimately to the holy grail of an efficient, low-cost subscription market. Change would not be driven by the consensus approach of establishing yet more market committees and initiatives and employing management consultants to herd cats.

"What will really make the difference," the article predicted, "is when someone, possibly from outside the market, comes in with a purely commercial proposition, pre-canned, ready to run, that people see a direct benefit in buying and using ... While the market implements (the) LMP (market reform programme) with all the speed of plate tectonics, some of these folk are quietly putting in place everything that is necessary to take over the whole market infrastructure and run it efficiently."

The article left it to the reader to decide whether this prospect was cause to rejoice or despair. Judging by the size and strength of the response, the subject certainly struck a nerve, with opinions divided into two opposing parties and a third group fully signed up to the "thanks for telling me, but there's not a lot I can do about it" party.

I promised to come back to this subject to review progress but since then something rather decisive has occurred, which should serve as a wake-up call to anybody who remains in doubt that the world is changing rather quicker than was foreseen. If they do not pay attention, then their freedom of choice may become somewhat limited within a few short years.

What's happened then?