Lloyd's Strategy

• Access to major insurance markets supported by a global brand and licensing network.

• Infrastructure supporting the subscription market and the provision of tax and regulatory reporting. Other central services (eg lobbying) and the ability to benefit from a Solvency II ready environment.

• A proportionate but robust market oversight regime consistent with an innovative and entrepreneurial culture.

• Capital efficient framework driven by the benefits of mutuality.

•  Financial security and strong ratings capable of attracting specialist insurance business.

• Access to specialist underwriting expertise and innovation. 

• A reputation for paying all valid claims in a timely and efficient manner.

• Access to a wide range of specialist and bespoke

(re)insurance solutions.

• Excellent financial security for policyholders which supports Lloyd’s ratings.

The current market oversight regime will continue, built around:

• Robust performance management (the supervision of underwriting, reserving and claims activities).
• Capital oversight (capital setting).
• Risk management (setting Corporation and market risk appetites and operating the risk management framework).

• Market development – Maximise flows of profitable business through existing cross-border (re)insurance channels.
• Licence enhancements – Where opportunities exist to extend Lloyd’s licence network cost effectively, activity will be initiated / continued.
• Structured relationship management - Attraction of business and capital from new trade capital providers (especially in the developing economies) as well as incremental new business from the parent companies of managing agents and brokers.

Streamlining and enhancing distribution

• Making face-to-face trading as effective as possible through the use of technology.
• Facilitating access to technology / initiatives which allow the market to access attractive business being placed remotely.
• Continuing to improve the efficiency of the coverholder model.

Market modernisation

• Project Darwin - the current focus is on design and consensus building; 2014 and beyond will be about execution.
• Claims Transformation Programme - designing and embedding tactical solutions to continue to improve the effectiveness and efficiency of the market’s claims handling; and determining the most appropriate solution for legacy claims.
• The Exchange – increase usage across the Lloyd’s and wider London markets and investigate how best to widen the reach of the  Exchange (e.g. placing support messages).

• Recruitment initiatives - to attract diverse, high calibre individuals at the start of their careers.
• Development initiatives - to retain and develop individuals with leadership and specialist skill sets.
• Diversity initiatives - to attract and retain the best talent, leading to a more diverse and inclusive market.

• Members’ agent led initiatives to examine ways to make private capital more attractive to managing agents, supported, as appropriate, by the Corporation.
• Particular areas of focus include contingent capital arrangements and the enhancement or simplification of structures and contractual arrangements (Special Purpose Syndicates).

Market Oversight

• Lloyd’s average combined ratio should be favourable to Lloyd’s peer group over a five year period and losses to the Central Fund should be within the market’s risk appetite.

• By 2025 the proportion of Lloyd’s business from developing economies will be in excess of a quarter of Lloyd’s gross written premiums.
• No specific goal for the market has been established for the end of this three-year plan period bearing in mind broader economic conditions and the current underwriting environment, although Lloyd’s will be better known and understood in the priority countries (China, Brazil, Mexico, India and Turkey).

Streamlining and enhancing distribution

• Brokers will find placing business at Lloyd’s easier and more efficient than today and managing agents will be able to access a wider range of business (as measured through periodic surveys).

Market modernisation

Project Darwin

• Key elements of the re-engineering and re-platforming of central processes and services (as agreed in the 2013 design phase) will have been completed. Other parts will have begun.

Claims Transformation Programme (CTP)

• The improvements in speed, market perception and quality set out in the CTP will continue to be met or exceeded.

The Exchange

• The Exchange will be embedded as the way of moving ACORD standard messages across the Lloyd’s market.

• The market’s workforce will be more diverse, including by nationality, and have a higher proportion of professionally qualified staff, when measured against the baseline data to be collected in Q1 2013.

• Private capital will increase in absolute terms, even if it falls as a percentage of total capital as the market grows pursuant to Vision 2025.
• There will be more syndicates open to private capital (whether on a direct participation basis or via the Special Purpose Syndicate route) than today.

• Lloyd’s will be a market where entrepreneurialism and innovation will thrive, underpinned by robust risk and performance management.

• The increase in premium income in developed markets will track or slightly exceed increases in GDP by region. In developing markets, at times, we would expect growth to exceed GDP as the specialist risk sector develops.
• Lloyd’s will have a small number of powerful overseas hubs in certain major overseas markets

• Lloyd’s will be a broker market and will build on its relationships with the larger brokers, as well as encouraging other specialist brokers. Coverholders and service companies will provide efficient access to local markets.
• Lloyd’s distribution chain will be optimised through the efficient use of technology.

• Lloyd’s will be a subscription market, with efficient central services providing seamless processing to support face-to-face trading and world-class claims management.

• Lloyd’s will attract the best talent and will provide an accelerated career path for the progression of high achievers.
• Lloyd’s will be a diverse market by gender, age and ethnicity. Its people will increasingly mirror the geographic origin of the market’s business and capital.

• Private names capital will continue but new names capital will be provided on a more flexible basis and more efficiently, mainly via Special Purpose Syndicates.