In the report, Lloyd’s outlines six guiding principles:

Principle 1: Market stability and payment of claims
Lloyd’s primary focus is on the stability of the market by ensuring it is solvent and liquid to ensure prompt payment of claims to affected policyholders.

Principle 2: Management of failing syndicates/members
It is likely that some syndicates/members will fail following an MTE. Lloyd’s will ensure that the run off of those syndicates are managed in an orderly fashion to minimise any wider impact to the market.

Principle 3: Stakeholder/data collection/coordination and communication
Lloyd’s would look to take a lead with coordinating interaction and collation of data with key external stakeholders (e.g. regulators, governments, rating agencies) minimising any duplication where possible.

Principle 4: Support the market
Support the market in responding to opportunities arising from an MTE which ultimately supplies capacity to clients. Where possible, activities in support of existing businesses may be prioritised ahead of new entrants.

Principle 5: Accelerate key processes
Lloyd’s approach will be commercial and pragmatic. This may include the use of an accelerated version of syndicate business and capital plan review/approval process.

Principle 6: Lloyd’s priorities
Corporation staff will focus on supporting the market in response to the event – potentially all other non-essential central activities will be temporarily suspended.

Download Market Turning Event - Lloyd's Guiding Principles