Lloyd's Strategy
Information on Lloyd's strategy and progress to date, including market and Corporation priorities for the next three years.
In our Three-Year Plan, we outline our key priorities for 2012-2014 including a resolute focus on underwriting discipline and risk management and maintaining and developing the attractiveness of the Lloyd’s market.
Download Lloyd's Three Year Plan
“Our vision is to be the market of choice for insurance and reinsurance buyers and sellers to access and trade specialist property and casualty risks.”
Key Characteristics:
- Lloyd’s model – a subscription market backed by a layer of mutual security – is one which positions the market well over the plan period
- Lloyd’s is a broker market – brokers continuing to access the market on behalf of their clients is critical to the market’s ongoing success
- Lloyd’s is a London-based international business – it is a major role of the Corporation to maintain and enhance market access and to ease the flow of business into the market
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Diversity underpins the market’s attractiveness – this includes diversity in the market portfolio (product and geographic balance) and in the size and structure of market participants and capital providers
Market Priorities 2012-2014:
- A resolute focus on underwriting discipline and risk management
- To maintain and develop the attractiveness of the Lloyd’s market
Corporation Priorities 2012:
| Market oversight |
A resolute focus on underwriting discipline and risk management |
| Solvency II |
Implement and embed Solvency II to protect and, where possible, enhance Lloyd’s capital structure and efficiency |
| Claims Transformation Programme |
Transform the way the Lloyd’s market handles claims to enhance the experience of the customer |
| Market Operations Review |
Agree and implement an evolutionary roadmap that renews the current back office processes and technology to prepare Lloyd’s for the future |
Lloyd's strengths must be maintained and enhanced to ensure the market's success. Lloyd's key strengths include:
| Market Oversight |
A framework to maintain underwriting and claims discipline and to help manage the performance of Lloyd’s businesses |
| Brand and Reputation |
Lloyd’s brand is recognised for being traditional, entrepreneurial and dependable with excellent financial security |
| Access to business |
The ability to access specialist property and casualty (re)insurance through Lloyd’s international licence network and London location |
| Capital Efficiency and the Chain of security |
Lloyd’s capital structure provides financial security to policyholders and capital efficiency for members |
| Mutuality and market cohesion |
The Central Fund underpins Lloyd’s capital strength, licences and ratings and helps bind market participants together through a common interest |
| Subscription market |
Subscription placement benefits policyholders and market participants, allowing competitive quotes and diversification of risk placement |
| Diversity in market composition |
Diversity across market participants and capital providers underpins Lloyd’s offer to its clients and is desirable from a risk management perspective |
| Underwriting expertise and innovation |
A reputation for specialist underwriting expertise and product innovation |
| Ratings |
Lloyd’s financial strength ratings attract the specialist (re)insurance business in which the market is interested |
To secure Lloyd's future success, additional focus and attention is required in some areas:
| Market portfolio diversification (Product & Geography) |
Lloyd’s, as a specialist (re)insurance market, has a business portfolio concentrated on North America and the UK, particularly catastrophe exposed business |
| Distribution model |
Lloyd’s is a broker market and this model serves the market well. Delegated authority arrangements are an important part of the distribution model |
| Market modernisation |
Lloyd’s provides a common processing infrastructure to support the operation of the subscription market and to meet tax and regulatory reporting requirements |
| Market talent |
Lloyd’s success comes in no small part from the strength of the market’s intellectual capital and talent base |
