6 December 2016 Insurance

Market cautiously optimistic on organisational changes at Lloyd’s

The market has reacted with cautions optimism to comprehensive organisational changes including the formation of new units and teams revealed by Lloyd’s yesterday (Monday December 5), which the market claims will make it more effective and efficient.

Lloyd's unveiled details of its new Corporation Operating Model (COM) that it said will enable it to deliver Vision 2025, its business plan and goals to that year, more effectively and efficiently.

It said the changes, effective 1 January 2017, will allow a “sharper focus on its core activities of protecting, promoting and providing services to the Lloyd's market more effectively and efficiently.”

The sentiment of market executives digesting the changes was broadly positive. “The market needs to change or it seriously risks losing market share to other hubs globally,” said one market executive.

“Everyone loves the tradition and history of Lloyd’s but not when that also means cumbersome processes and too much red tape. Things needed to change.”

Another added: “A reorganisation is well overdue but only time will tell if it will be enough to keep up with the pace of change in the wider industry.”

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It outlined five key changes, detailed below.

Firstly, the market will establish a new Syndicate Capability Oversight team, which will sit within Jon Hancock's Performance Management division, led by Peter Montanaro. It will bring together the market supervision teams working directly with managing agents.

Second, it will integrating existing teams with responsibility for customer and conduct, including delegated authorities, claims, conduct and complaints into a new policyholder and third party oversight function, within Performance Management, led by Paul Brady.

Third, it will aligning regulatory and compliance activities within the risk and regulatory division, led by chief risk officer Hilary Weaver, to provide the needed regulatory oversight from one function.

Fourth, it will establish a new Innovation team, in Vincent Vandendael's Commercial division (previously Global Markets), under Trevor Maynard, to focus on developing and facilitating innovation in the market and the Corporation.

Finally, it will consolidate data-led activity into the DataLab - a centre of excellence led by Helen Crooks, as part of Shirine Khoury-Haq's Operations division.

Inga Beale, chief executive of Lloyd’s, said: “These changes are about making it easier for us to play the role the market expects. Namely protect, promote and provide the services they need.

“This new structure and various initiatives, in the next years, will allow us to become more effective and efficient, ensuring the market has clear routes into the corporation, avoiding duplication, whilst freeing up teams to look at the issues and opportunities ensuring Lloyd's remains at the heart of global insurance and reinsurance.”

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