Silver Linings - Let’s Find Some Positives Out Of The Negative.

So here we are about start the first of what is likely to be several strange weeks. 

The current situation in the UK, Europe and Internationally is something we all planned for with our business continuity planning but probably not what anyone really expected.

Just a few years ago this would have significantly hampered the way we work whereas today it is somewhere between an inconvenience and a forced business operations change.

eMail and mobile phones are just the tip of the iceberg. In the last few years there has been a growing use of products such as Skype, FaceTime and a myriad of other video messaging alsolutions. To complement this, we have seen Webex and MS Teams become part of day to day business. Conference calling is inexpensive and easy to use from many online suppliers.

Office 365 and Cloud storage is now commonplace, ready access to all our files whilst on the move. Whilst the proliferation of free wi-fi has helped, the cost of mobile data has reduced to the point that tethering laptops to mobile phones is now a viable option. We sit at home, in coffee bars, parks, gardens on our laptops, tablets and phones without worrying about whether you have access to the applications or data. Hosted or Virtual desktop has removed the need to making sure that you remember to take your work laptop. 

These changes to our working infrastructure have allowed many firms to embrace the concept of “working from home”, a few have even introduced “hot desking”. 

The current situation will likely force many other firms to experiment with the concept and when the dust settles it will be interesting to see how the landscape will have changed.

Over the past three years as a market we have endeavoured to expand the use/embed electronic binding using the many bespoke solutions now supported by the market wide PPL solution and more recently the growing interest in Whitespace.

In the last 12 months we have seen over 100,000 risks bound, together with over 200,000 endorsement agreement using PPL alone. It proves that even binding is possible, and more importantly the market can continue to operate and deliver Client’s needs. 

I am sure that there will continue to be naysayers, this is only to be expected. However, if the current working conditions continue even the most die hard “anti-PPLer” may have to re-evaluate their position.

Electronic distribution in accounts and claims has been around for 15 years now, but the technology, whilst still working, is a little old and this crisis should show the importance of investment and modernisation. It makes no difference if we can't see each other whilst still binding risks if we cannot pay premiums and claims. 

I have always endeavoured to be a glass half full person (or actually I’m a “isn’t it time for another glass” person), I always look for positives out of the negatives. It is my hope that once we all get back to normal, normal will have fundamentally changed for the better. 

You never know we may be seeing the birth of the virtual underwriting room with face to face negotiations using an embedded video conference within the e-Trading platform supported by smart contracts that distribute the bound data to the relevant accounting and claims systems. 

Possibly a bit early to sell your shares in Diageo and BrewDog but it might be worth considering shifting to Unilever (PG Tips) and Nestle (Nescafe).

James Livett – 15th March 2020