After conducting a detailed review of the market’s position that involved more than 50 managing agents, brokers and market associations, Lloyd’s, the world’s specialist insurance market, today released its official 2010–2012 strategy.
The insurer says that maintaining and developing the attractiveness of the Lloyd’s market is central to the strategy, which includes working to ensure that London remains a competitive financial services center, continuing work to improve the current operating environment and ensuring that the evolving regulatory landscape does not damage Lloyd’s position.
Lloyd’s says it owes its current market position to a number of factors: a strong balance sheet, a conservative investment strategy, underwriting discipline and a focus on underwriting profit. The company says that its limited participation in insurance lines most exposed to the impact of the economic downturn, along with an absence of major catastrophe events in 2009, also play to their favor.
“This is about evolution, not revolution,” notes Lloyd’s CEO, Richard Ward. “We have stood up well in the face of the worst recession since the great depression, and we don’t see a huge necessity to change direction. The Lloyd’s subscription model backed by a layer of mutual security is serving us and our customers well, as is our location in the heart of the London insurance market.”
Ward cautions, however that while the company “is in good shape, we cannot afford to be complacent. In 2010 we will be absolutely focused on underwriting and risk management and in preparing for the introduction of Solvency II,” he said.
Other priorities for 2010 include: increasing the adoption and use of The Exchange, a marketing directory and communications hub for its broker network that uses messages that are ACORD-validated and can only be exchanged with registered trading partners.
In its published report, Lloyd’s maintains that its relationship with its distribution channel is a key element to its game plan, and says it will ensure that the firm’s market development strategies are aligned with brokers’ business development strategies. To that end, it is developing what it calls a “more tailored broker relationship management program.” Part of this program will include enhancements to its Lloyds.com broker section, and more resources in support of brokers’ own business development efforts. Further, the insurer says it will help identify the need and deliver support to brokers in their implementation and use of new market technology; specifically, (e.g. the provision of change management support to assist in the roll out and adoption of The Exchange).
“Lloyd’s is a broker market; they are central to the market’s ongoing success. We also need to work to improve and streamline how coverholders access the market,” Ward said.
The insurer also wants to transform the way the Lloyd’s market handles claims; and improving access to business through working with brokers and coverholders.
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