Lloyd’s bodies unite to lobby the Council of Lloyd’s
A united group of Lloyd’s bodies is lobbying the Council of Lloyd’s to update rules and regulations that currently allow capital to be taken out of the market, David Johns-Powell, non-executive director of the Association of Lloyd’s Members (ALM), told Intelligent Insurer.
A coalition of the ALM, the Lloyd’s Market Association (LMA), the members’ agents and the High Premium Group, which protects the interests of high-value providers of private capital, has come together to represent the third party capital in Lloyd’s.
Previously, these bodies had operated quite separately, Johns-Powell said, and working more closely has been a big step forward. “It allows us to speak with a united voice to the executive of Lloyd’s and that is very helpful.
“We participate in Lloyd’s market consultations on behalf of members. All Names, not simply our members, benefit from all results and successes we achieve.”
Johns-Powell said the group was particularly focused on the Lloyd’s byelaws, which are the set of rules and regulations that govern the 300-year-old market, also known as the Society of Lloyd’s.
Explaining what had brought the issue to a head, he said: “There was a proposal, which has now been accepted, under the ‘Change of Circumstances’ byelaw, where a carrier wants to take capacity out of two syndicates, in particular cyber and other surplus lines, for a captive in America.
“Obviously, that was of concern to members. That transaction is going to happen, but what is important is that the ALM has identified that the ‘Change of Circumstances’ byelaw may not be appropriate in the circumstances of a major syndicate transaction. That is something that we will be lobbying the Council of Lloyd’s to look at, because this is our business.”
The group of Lloyd’s bodies started working together more closely last year and has already successfully lobbied for the creation of the Third Party Capital Committee, which is now a permanent committee of the LMA.
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