Sheila Cameron, CEO of the Lloyd's Market Association tells Reactions what she thinks of the “Future at Lloyd’s” blueprint.
Do you broadly agree with John Neal’s ideas on what is needed to future-proof Lloyd’s?
Absolutely. During the months prior to the publication of “The Future at Lloyd’s,” the LMA worked closely with John and the Lloyd’s team to ensure that managing agents’ collective view was heard and incorporated into the “Future at Lloyd’s” prospectus. Now it’s time for us to put some flesh onto the skeleton of the propositions. We need to do so quickly, decisively, and in unison if we are to improve Lloyd’s value proposition and product relevance for our customers around the world.
Are there any omissions, or aspects, you think need tackling?
One of the themes running through much of the feedback I have had so far from managing agency leaders is that the propositions are largely silent on Learning & Development. I have called on Lloyd’s to include provisions for skills development on the Lloyd’s Ecosystem of Services. Underwriting discipline is part of “business as usual,” but as John Neal has said, Lloyd’s intends to keep their hand firmly on the performance tiller.
Which of the new ideas stand out for you?
“The Future at Lloyd’s” cannot be viewed as a shopping list of reforms. Each of the propositions is equally important, or nearly so. That means the propositions will deliver reduced expenses for LMA members, but especially for our clients, only if they are implemented as a package.
The six propositions will reduce expenses in all three non-claims cost areas for our market: back-office administrative and regulatory costs, front-office underwriting and administration costs, and acquisition costs.
With reform of the embedded lead/follow model in the background, the risk exchange will dramatically reduce costs for high-volume, low complexity risks, particularly on delegated authority business. The complex risk platform will do the same for risks that require a greater level of underwriting and claims acumen, but with a single leading market responsible, and light-touch capacity filling the order. That capacity could enter the market through the proposed capital exchange, perhaps from a “syndicate in a box” platform. Both of the new Lloyd’s market entry points, one for complex and one for simple risks, will benefit from the revitalised claims offer, with a streamlined adjustment process behind it.
Read the rest of this story in this month's edition of Reactions.