To participate in the Lloyd’s market as a syndicate in a box, new entrants must meet specific criteria:
introducing new underwriting expertise/ innovation, developing talent, maintain Lloyd’s strong underwriting discipline.
add value to Lloyd’s offering with consistent profitable results
broadening new and existing Members’ access to potential policyholders in new and emerging markets.
By the end of year three at the latest, net combined ratio for syndicates in a box must be <100% and net expense ratio must be <35%.
Accretive or innovative
Syndicates in a box must be accretive and/ or innovative to Lloyd’s. (where accretive means enhancing the Lloyd’s franchise by introducing new business and/or distribution opportunities, and innovative means new products, services, or methods of distribution).
Syndicates in a box should aspire to become a full syndicate and must start with GWP not exceeding £100m in their first year, to limit the risk to the market.
Covering limited types of business
Syndicates in a box should have limited exposure to Lloyd’s peak perils (currently US/Caribbean Wind, US/Canadian Earthquake, Japanese Earthquake, Japanese Typhoon and European Wind).
Shorter tail risks for new businesses
This will enable success to be judged within three years. Longer tail portfolios will be considered when there is evidence of a good track record.