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Banking reimagined: How to streamline insurance brokers’ treasury operations for a new era
Read time: 5 mins Added: 09/07/25
Change and evolution are two key strategic themes in the insurance sector, especially within the broker segment. The high number of mergers and acquisitions in the sector can result in operational complication, fragmentation and inefficiency when it comes to financial integration within firms. So how can brokers navigate these challenges, streamline their processes and transform treasury operations?
A labyrinth of legacy treasury systems
Mergers and acquisitions remain dominant in the UK insurance segment, affecting the smallest brokers to the largest household names. Such businesses must navigate different legacy treasury systems and consolidate or decommission them where needed. Legacy systems that stay in place can be costly to maintain, stall innovation, and increase operational, financial and compliance risks.
Firms that have undergone multiple mergers and acquisitions are also often left with bank accounts that are split across multiple financial institutions. This requires the duplication of processes across each of the institutions, resulting in an unnecessarily repetitive and highly inefficient approach to treasury management.
Transformation of the treasury
The solution lies in more streamlined and simplified treasury operations that use integrated and advanced technology. Lloyds Bank works closely with brokers to help them build automated treasury operations from the ground up, no matter where they are on their transformation journey.
We can help brokers navigate this journey, especially through three priority areas:
1. Streamlined operations
Initially, many brokers are looking to streamline operations and consolidate banking services with a core bank. Lloyds has a strong banking offering, and we can support brokers when streamlining inefficient manual processes and provide visibility through our platform of all your cash positions.
We have over 1 million business clients, so if a newly acquired firm already banks with us, the integration and consolidation process is even faster and simpler.
2. Advanced digital solutions
For recently integrated brokers, digital solutions make the consolidation, management and segregation of client money simpler and more efficient. Lloyds Bank’s Commercial Banking Online portal offers up to 2,000 business accounts, including Designated and Undesignated Client Money Accounts that can segregate funds in line with CASS 5 rules. Considering the importance of the segregation of client funds in the insurance sector, using these digital accounts to manage client money offers more clarity and control in the process.
There is now a wealth of new technology that can help to solve some of these issues and foster efficiency within the treasury. By building the treasury on digital foundations, brokers can improve the client experience, drive efficiency and future-proof operations. We are able to connect to all of the major digitalised Treasury Management Systems (TMS). Payments can be made directly from the TMS through a Host-to-Host or Swift connection, or by using our API-led solutions. Ultimately this enables automated payment processes that offer centralised control and visibility.
3. Cost-saving FX solutions
It’s also possible to use digital attended and unattended channels to make international payments and manage foreign exchange (FX) requirements. Lloyds Bank offers a range of Transactional FX solutions accessed through the TMS, which can unlock cost-saving activities, such as paying invoices in the local currency. With live FX rates across 39 currencies, this can reduce cost, offer certainty, and speed up the payment process.
Technology can significantly simplify and improve the payment collection process too. Lloyds Bank offers a wide range of channels to take payments, ranging from taking card payments online through to setting up direct debits or receiving funds through Faster Payments or CHAPS. Our API-powered suite of Embedded Payment solutions can integrate into your client journeys and offer real-time account-to-account transfers and automated reporting.
Christian De Monte Managing Director, Head of Insurance and Group Subsidiaries, Lloyds BankOur deep and rich insight into the insurance sector means that we understand the unique challenges faced by brokers. As a bank operating at the forefront of innovation, Lloyds can work hand-in-hand with businesses in the insurance sector to offer new pathways towards becoming more streamlined and efficient.
Deep expertise in the insurance sector
Lloyds Bank has a dedicated insurance team with over 120 years of collective experience in the insurance sector. We support every type of insurer across the value chain; from privately owned or private equity owned, through to those that are publicly listed. Over 100 insurance sector clients bank with Lloyds Bank and of those, 97 use our cash management capabilities.
Our sectoral expertise is complemented by our technological capabilities and our knowledge of the UK’s payment landscape. We process on average 180 million Bacs and 137 million Faster Payments every month. This means that one in every three account-to-account payments in the UK is processed through Lloyds Banking Group.
We can offer strong implementation support and help our clients at every step of the journey. “The transition from manual operations towards a modernised treasury is significant, and our goal is to support the broker throughout this journey at their own pace,” said Christian.
For more information on how Lloyds Bank can fuel the transformation of the treasury for insurance firms, speak to a member of our dedicated insurance team.