The story of Velonetic

In March 1916, the Lloyd’s Policy Signing Office (LPSO) was established. A response to the pressures of the First World War, LPSO was created by Sir Walter Hargreaves to centralise policy signing at Lloyd’s, ensuring efficiency at a time when the market was under significant strain. By 1924, policy signing became compulsory for underwriters.

During World War Two, operations were relocated to Pinewood Studios to safeguard continuity in the face of London bombings. Post-war, the organisation expanded, moving to Stafford House and later opening an administrative centre in Chatham in 1977, further enhancing its capacity.

By the late 1980s, Velonetic’s predecessor organisations were among the world’s largest users of IBM punch cards globally – this paved the way for the introduction of electronic data interchange (EDI) which swiftly displaced and replaced punch cards and magnetic tape media.

The late 80s and early 90s saw further modernisation of the organisation with the introduction of the Lloyds Insurance Data System (LIDS) and CLASS.

1992 saw the formation of the Lloyd’s Claims Office (LCO). LCO was the product of merging three different Lloyd’s claims offices: LUCRO (marine), LUNCO (non-marine) and LACC (aviation).

In 1998, the merger of the Institute of London Underwriters (ILU) and the London Insurance and Reinsurance Market Association (LIRMA) brought together the representative bodies for the marine and non-marine sectors of the London company insurance market. The ILU, who’s history dates back to 1884, specialised in marine, aviation and cargo insurance, while LIRMA, formed in 1991, focused on non-marine insurance.

The merger was driven by companies that wrote both marine and non-marine business and sought efficiency through a single trade association and processing bureau. Streamlining these operations, led to the creation of the London Processing Centre (LPC) and a single trade association, the International Underwriting Association of London (IUA).

The 2000s brought further innovation. In-Sure Holdings Limited (XIS) and Xchanging Claims Services Limited (XCS) were formed in 2001, bringing together LPSO, LPC, Lloyd’s, and the IUA under one umbrella, known as Xchanging, strengthening the market’s ability to process policies and claims efficiently.

In 2004, our teams in the UK began working in parallel with colleagues in India, creating a global processing network that remains a core part of our operations today.

The mid-2000s also saw the introduction of the Insurers’ Market Repository (IMR), a key step in transitioning from paper-based to digital processing.

The pace of change accelerated with the acquisition of Xchanging by Computer Sciences Corporation (CSC) in 2016. CSC’s subsequent merger with Hewlett Packard Enterprise Services in 2017 led to the formation of DXC Technology, cementing its future as a service provider to the London market by renegotiating terms of contracts with its customers.

In 2020, Lloyd’s announced its plan to deliver Blueprint Two - a programme of work designed to digitise the London insurance market and drive efficiency and innovation in a rapidly evolving risk landscape.

2021 saw the signing of the Build Agreement for the build of Digital Processing Services (DPS), a transformational step for the world's largest insurance marketplace.

By 2023, Velonetic was announced as the new brand identity for the joint venture between DXC, IUA and Lloyd’s, marking a new era for our organisation.

In February 2024, we reached another milestone with the publication of the initial version of the Digital Processing Services Agreement (DPSA), reaffirming our focus and commitment to transform and streamline the way insurance transactions are processed.

Velonetic is not just about systems and processes—it is about people. Many of our colleagues have dedicated decades to shaping and refining how insurance transactions are processed. Their expertise, knowledge, and commitment have been integral to our success and they continue to shape our future.

As we continue to evolve, we remain steadfast in our mission: to transform and streamline insurance processing, delivering efficiency and cost savings to the London market. Velonetic is a legacy built on innovation, and we are proud to carry that forward into the future.