lloyd’s strategy 2010-2012 april 2010. © lloyd’s2 lloyd’s vision key characteristics a...
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Lloyd’s Strategy 2010-2012
April 2010
© Lloyd’s2
Lloyd’s vision
Key Characteristics
A subscription market backed by mutual security A broker market; brokers are Lloyd’s distribution arm and are critical to its
ongoing success A London-based business Diversity across all aspects of the market
Role of the Corporation
To undertake the overall risk and performance management of the market To maintain and develop the attractiveness of the market
“ To be the market of choice for insurance and reinsurance buyers and sellers to access and trade specialist property and casualty risks.”
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Challenges in Lloyd’s competitive environment
Maintaining underwriting discipline
Maintain London’s position as the leading centre for specialist (re)insurance
Maintain access to business in the face of a changing distribution landscape
Maintain the attractiveness of Lloyd’s compared to other specialist insurance centres
Protect Lloyd’s capital, licences, brand and ratings
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The market's strategic priorities for the plan period
Maintain and develop the attractiveness of Lloyd’s
Maintain and promote the competitiveness of London as a financial services centre
Continue to improve the efficiency of business flows and placement, accounting and claims handling
Protect Lloyd’s capital and licensing advantages against an evolving regulatory landscape
Resolute focus on underwriting discipline and risk management
Continued application of performance management framework
Ensure high quality risk management developed and embedded at individual and aggregate levels
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Corporation priorities for 2010
Performance Management
Solvency II The Exchange
Claims Transformation
Access to Business
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Trends and issues in the global insurance industry
Geographical balance
The Lloyd’s market portfolio is heavily focused on North America and the UK, with limited penetration in the large developed Continental European insurance markets or smaller insurance markets in developing economies
Market portfolio mix
Lloyd’s market has seen a gradual shift towards more catastrophe exposed business, particularly in the US
Distribution
Continued structural changes within the broker market
Concentration of business with three largest brokers
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Lloyd’s response to these global insurance trends and issues
Geographical balance Established markets: London-based model using broker distribution and making
use of coverholders to access ‘smaller’ specialist business Developing markets: existing trading centres remain but preferred model elsewhere
is as a London-based (re)insurer
Market portfolio mix Market participants believe opportunities exist with small/medium specialist risks Support the business development activities of managing agents, promote Lloyd’s
in local markets, secure regulatory access where required, streamline and simplify access to Lloyd’s
Distribution Work closely with all distribution partners Areas of focus:
Development of the coverholder channel Strengthening the Lloyd’s distribution chain process and operational efficiencies Broker relationship management
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Strengths of the Lloyd’s market
Performance and risk management
Access to business
Capital efficiency and chain of security
Ratings
Brand
Diversity
Subscription market
Market cohesion
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Lloyd’s response: maintaining and promoting Lloyd’s strengths
Future activity in these areas will be focused on maintaining these strengths not on any major new strategic initiatives
Two major streams of activity already underway, enhance Lloyd’s strengths, and continue to be a high priority
Solvency II Performance management
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Investment for the future: Operating Environment
Future state of the Lloyd’s operating environment
An operating environment in which data is “entered once and used forever”; with common ACORD standards
It will be as easy to do business with Lloyd’s as with any other insurance market
This will be delivered through four major initiatives:
The Exchange Lloyd’s Information and Reporting Project Claims Transformation Future Processing Model
Response over the plan period
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People are the market’s main assets
Work will continue to develop skills and talent across Lloyd’s market in partnership with key market bodies (LMA, LIIBA)
Investment for the future: Talent management and development
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Operating at Lloyd’s provides market participants with access to a range of Corporation services e.g. tax and regulatory reporting, central settlement
A lot will be demanded of market participants over the plan period e.g. market reform initiatives, Solvency II
The Corporation will support businesses through this transition period wherever possible
Changing marketplace
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Visit lloyds.com/strategy for more information
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