Lloyd's in 2019 and beyond
John Neal’s tenure as Lloyd’s CEO started in October 2018. Since then he has been busily reviewing the scale of his task and building a plan for the market. It is becoming increasingly clear that he has strong views about his priorities and we welcome his vim and vision.
First, he is delivering on three short-term matters;
- Phase 1 of the Target Operating Model to enhance the processes of transacting insurance in the London market
- Launch Lloyd’s Brussels – this started trading on 18th November 2018
- Performance Management – the 2019 business planning process was exacting. It resulted in £3bn of marginal business being removed from syndicate plans.
In the medium term, his objective is to ensure that the Corporation is fit for purpose for all stakeholders. To that end, a lot of work is being done engaging with policy holders, brokers, managing agents and members’ agents to ensure that the market operates as efficiently as possible.
In the longer term, John’s focus is on developing a vision for the market and establishing the right direction for Lloyd’s to travel. His early comments are that we are at a ‘pivotal moment’ in the history of Lloyd’s and that nothing should be off the table.
There is a growing feeling that the best future opportunities for Lloyd’s will come from the US – the market with the greatest penetration of insurance. Previously Lloyd’s has been seeking a physical presence in developing countries; for example it has opened offices in Mexico City and Shanghai. We expect that John Neal and the leadership team to make some clear strategic choices in the next few months about where and how Lloyd’s will focus its energies to best help the market develop profitable business. There are signs of this change in focus towards US business with the recent announcement of QBE’s former North American CEO, David Duclos. Duclos will be the non-executive chairman of a new Lloyd’s Global Network initiative which is designed to help shape Lloyd’s international expansion efforts.
John Neal has undertaken to publish a prospectus in April detailing the future direction for Lloyd’s. We are happy to report that his team have taken the views of third party capital in this initiative and that Lloyd’s sees third party capital at the heart of a vibrant marketplace.