Annual Report 2023
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Bruce Carnegie-Brown
“Our purpose at Lloyd’s is to share risk to create a braver world. By providing leadership, investing in innovation and delivering a very strong financial performance, the market is well positioned to continue delivering that mission in the years ahead.”
2023 was a remarkable year for Lloyd’s. In a period of heightened risk, the strong financial position of our market enabled us to help people build confidence, resilience and bravery in the face of a shifting landscape.
The first quarter of this century brought a series of seismic events. Bookended by the 9/11 attacks on US soil and conflict on European soil – with a global financial crisis and pandemic in between – we should expect these kinds of events to continue in the second quarter of the century.
Far from causing us to retreat, that uncertainty invites us to use our experience, data and capacity for innovation to anticipate the risks that might lie ahead; and provide the solutions customers need to respond.
Our purpose at Lloyd’s is to share risk to create a braver world. That means pooling our resources, syndicating risks and building relationships to underwrite the decisions that help society continue to operate and thrive at all times. By providing leadership, investing in innovation and delivering a very strong financial performance, the market is well positioned to continue delivering that mission in the years ahead.
In 2023, preparing for the future meant innovating through the market’s collaboration and award-winning Lloyd’s Lab incubator. Forward-thinking brokers and underwriters collaborated with governments, regulators and others to help communities respond to global conflict: whether insuring the UN’s Black Sea Grain Initiative to protect over 30 million tonnes of grain and fertiliser shipments from Ukraine, or providing a just-in-time insurance facility for the rescue of the FSO Safer supertanker, off the coast of Yemen, preventing what could have been a devastating environmental disaster.
We were pleased to see Lloyd’s Lab turn five in October, which has seen over 100 startups through its doors in those five years – and over a billion dollars of investment raised for the solutions from those startups. As a testament to the Lab’s relevance and commercial edge, 97% of Lab graduates are still operating or have been successfully bought. Those solutions are helping people, businesses and governments mitigate cyber attacks, model wildfires, manage political risks and much more in communities around the world.
On the biggest challenge of our time, Lloyd’s continued to bring key players together to address climate change and support the transition to a low carbon economy.
That meant convening insurers and collaborating with other sectors through the Sustainable Markets Initiative, where Lloyd’s chairs the Insurance Task Force, to deliver resilience-building risk solutions. From a new partnership with the UN Capital Development Fund (UNCDF) focusing on climate-vulnerable nations, to new standards for responsible and sustainable space exploration, this work has helped people face into the climate threat and take informed, brave decisions to protect their future and our planet.
That was supported by the work of the Lloyd’s Futureset platform to deliver insights on new and emerging risks. From a series of events to spotlight new technologies and threats called Risk Revealed – attended by over 1,300 market experts – to developing nine new scenarios with the Cambridge Centre for Risk Studies to support planning and preparedness on systemic risks, Futureset played a leading role in helping our industry and customers understand the risks of the future so we can start building resilience today.
In 2023, we united our charitable activities under the Lloyd’s of London Foundation which continued to support more sustainable, resilient and inclusive communities around the world by mobilising 2,000 market employees behind the work of 36 charities. Ranging from mental health programmes to sustainable farming projects, this work is a core part of our mission to support a braver world; looking beyond our market to create opportunities and close gaps in the communities we’re privileged to be a part of.
Insurance has always played a role in helping people manage the unknown and the uncertain. We performed this role again in 2023: providing the stability, investment and capital to help people and businesses bounce back from disaster and build resilience for the future.
We are grateful to all who worked with us to deliver that mission in 2023.
Bruce Carnegie-Brown
Chairman of Lloyd’s