Our largest markets remain vitally important to our business and we are committed to continuing to develop both the products and relationships to build on our success in them. However, the Lloyd’s market needs to ensure it also keeps pace with developing markets.
In May 2012, the Prime Minister, David Cameron, came to Lloyd’s to help launch the new strategy for the development of the Lloyd’s market – Vision 2025 – to position Lloyd’s to take advantage of the opportunities presented by the world’s developing economies.
Core to Vision 2025 is the need for Lloyd’s to be larger than today, targeting profitable growth both from developed and developing economies. The aim of Lloyd’s Vision 2025 is to ensure the position of the Lloyd’s market remains as the global centre for specialist insurance and reinsurance. We will achieve this by:
- Growing our premium income from developed markets in line with their economic growth, with greater growth in developing markets.
- Encouraging a more diversified capital base, with greater contribution from high growth economies.
- Supporting a truly internationalised underwriting community.
- Remaining a broker market, utilising brokers’ international networks.
- Having a small number of powerful overseas hubs in certain major overseas markets.
Following the launch of Vision 2025 in May 2012, we undertook a detailed analysis of the potential opportunities offered in the large high growth economies and applied a number of factors to prioritise them, including managing agents’ appetite, broker penetration, local business environment, business mix and catastrophe exposure.
This analysis suggested that China, Brazil, Mexico, India and Turkey are Lloyd’s current higher priority countries. Opportunities in these countries, as well as Lloyd’s existing large developed markets, will be addressed within relevant country and regional development plans.
Much of the work of realising this Vision will fall to the market. It is managing agents’ appetite for growing Lloyd’s in new markets which will ultimately govern the success of the plan. The Corporation will do all it can to assist, whether through market development support, the improvement of back office processes or through attracting high performing and diverse professionals to work in the market.