Lloyd's cuts market subscriptions and restructures for 2017
Source: Asia Insurance Review | Jan 2017
Lloyd’s will reduce its 2017 market subscription by 10%, Chairman John Nelson and Chief Executive Inga Beale announced in an end-of-year email last month. They said that current year underwriting was not profitable in aggregate and was a matter “of great concern”.
In a letter that also talked about the importance of efforts to modernise the market and reiterated the importance of retaining current trading rights with the EU despite Brexit, they emphasised that the market will look to ensure it remains efficient for companies using it.
“In these tough times we are continuing to review our costs and ensure we are set up to deliver our service to you in the most effective and efficient way possible,” they wrote. They also noted that despite 2016’s challenges, the strength of Lloyd’s financial position has continued to improve, with ratings at an all-time high.
Lloyd’s has also announced details of a new Corporation Operating Model (COM) that it said will enable it to deliver its Vision 2025 strategy more effectively and efficiently and bring a sharper focus on its core activities of protecting, promoting and providing services to the Lloyd’s market more effectively and efficiently. The changes, which take effect from 1 January 2017, include:
- Establishing a new Syndicate Capability Oversight team, in Jon Hancock’s Performance Management division, led by Mr Peter Montanaro, bringing together the market supervision teams working directly with managing agents;
- Integrating existing teams with responsibility for customer and conduct, including Delegated Authorities, Claims, Conduct and Complaints into a new Policyholder and Third Party Oversight function, within Performance Management, led by Mr Paul Brady;
- Aligning regulatory and compliance activities within the Risk and Regulatory division, led by Chief Risk Officer Hilary Weaver, to provide the needed regulatory oversight from one function;
- Establishing a new Innovation team, in Mr Vincent Vandendael’s Commercial division (previously Global Markets), under Mr Trevor Maynard, to focus on developing and facilitating innovation in the market and the Corporation; and
- Consolidating data-led activity into the DataLab – a centre of excellence led by Helen Crooks, as part of Ms Shirine Khoury-Haq’s Operations division.
Ms Beale said: “These changes are about making it easier for us to play the role the market expects. Namely protect, promote and provide the services they need. This new structure and various initiatives, in the next years, will allow us to become more effective and efficient, ensuring the market has clear routes into the Corporation, avoiding duplication, whilst freeing up teams to look at the issues and opportunities ensuring Lloyd’s remains at the heart of global insurance and reinsurance.”