Lloyd’s confirms insurance classes for modernised syndication pilot
As part of the Future at Lloyd’s strategy, the market and the board of the Lloyd’s Market Association (LMA) confirmed that the modernised syndication pilot will start with marine hull and international casualty classes, and begin either late in the first quarter or early in the second quarter of 2020.
The pilot will test the principle of the planned changes to improve performance and reduce duplication. It will also allow the market to develop leader and follower standards more broadly and ensure oversight is proportionate. Findings from the pilot will feed into a wider market consultation.
The development of leader and follower standards for these classes is underway, with a market consultation planned for the coming weeks.
Sheila Cameron, chief executive of the LMA, said: “We are pleased to have moved forward to the next stage of the modernised syndication initiative by going through a robust analysis of the most appropriate classes for the pilot. We look forward to continuing to work closely with the market on the creation of the leader and follower standards in the marine hull and international casualty binders classes.”
Jon Hancock, Lloyd’s performance management director, said: “The pilot will enable the market to test the principle of modern risk syndication and develop appropriate leader and follower standards, one of the key foundations of the Future at Lloyd’s. Once agreed, the revised lead-follow model will deliver significant benefits including improved standards, cost reductions, more proportionate governance and oversight, and smoother implementation of the Future at Lloyd’s solutions. This distinction between leaders and followers should make it easier for brokers to place business at Lloyd’s, and should drive good quality, sustainable underwriting performance and growth.”
