Lloyd’s clarifies confusion on scheme phase out in Singapore

The scheduled repeal of the Lloyd’s Scheme (LS), the regulation which enables Singaporean insurance business to be written outside of Singapore, should not be confused with Lloyd’s Asia Scheme (LAS), a market spokesperson has clarified.

LS, which supports the work of Lloyd’s underwriters in London and coverholders or global service companies, will be repealed in November 2022, with potential impacts for the six brokers approved to use it: AON, Marsh (JLT), Lockton, Willis Towers Watson and Howden.

However, Lloyd’s emphasised that LS was always set up as a temporary measure to help establish the Lloyd’s Asia platform and market. “The phasing out of the scheme (LS) is a strong recognition of the maturity of Lloyd’s in Singapore and the depth and breadth of capacity and expertise we have built over the last 20 years.” a spokesperson said.

This scheme “should be distinguished from the Lloyd’s Asia Scheme (LAS), which is the piece of regulation allowing and governing the operations of Lloyd’s in Singapore”. The LAS “is not affected by the phasing out of the Lloyd’s Scheme (LS)”, the spokesperson said, adding: “It is business as usual for Lloyd’s in Singapore. In fact, we expect more opportunities for Lloyd’s in Singapore as the Lloyd’s Scheme (LS) is phased out.”

Lloyd’s also emphasised that the reinsurance business would not be affected. “Brokers can continue to place reinsurance with Lloyd’s in London or anywhere in the global network in the same way they currently do today either on a cross-border basis, without a Singapore broker involved or when Monetary Authority of Singapore dispensation has been granted for specific cases.”