Lycetts boosts tech investment in softening market
Lycetts is investing more in technology while maintaining its face-to-face relationships with clients, according to CEO Ian Barclay, who said he sees opportunities in a softening insurance market.
Over the past five years, insurers have made considerable progress in using data, Barclay noted. “Therefore, how we present things to insurers has to change, and we need to be using that data more effectively. And that could be to make sure that actually our proposition continues to evolve as our client needs evolve.”
Since taking over as CEO in September last year, Barclay has pushed technology and data investment at the broker. He suggested there is always more to be done.
The softening market presents an opportunity for brokers that can present better data to insurers. Lycetts is focusing on using data to improve how it submits risks and communicates with carrier partners, though Barclay did not specify which technologies the firm is adopting.
Many brokers have been updating their systems in recent years to meet insurer demands for structured data, but the move is often challenging for firms that also want to preserve the personal relationships that differentiate them from larger competitors. Lycetts appears to be trying to do both, which could give it an edge if the softening market sharpens competition for accounts.
Related: Trends in yellow gold engagement rings
Barclay emphasized that the proposition must evolve as client needs change. He made no announcement about new software vendors or data partnerships, indicating the investment is likely internal and incremental.
Lycetts operates as a regional broker in the United Kingdom. Its focus on face-to-face service has been a hallmark of its brand. The investment in technology is not a departure from that model but an addition to it.
The combination of data-driven underwriting support and direct client contact could help Lycetts retain business even as market conditions become more favorable to buyers. In a softening market, insurers compete more aggressively, and brokers with good data can often negotiate better terms for clients.
Barclay’s comments come at a time when many in the industry are watching the market cycle closely — and wondering how long the softening will last. He said the broker’s technology effort is ongoing and that the firm is committed to adapting.
For Lycetts, the challenge will be measuring whether its upgraded data capabilities actually translate into better outcomes for clients and insurers. If the market turns harder or faster than expected, the timing of this investment could matter more than the technology itself.
