NU Online News Service
Lloyd's insurance market today set out a new three-year plan aimed at surviving new competition from overseas.
The document, titled "Building the Optimal Platform," aims at ensuring ease of doing business at Lloyd's at a competitive cost, said Lloyd's Chairman Lord Peter Levene in the introduction.
Lloyd's spokeswoman Melanie Batley said among its main themes is treating businesses at Lloyd's more individually and based on track record.
"For example, in terms of capital requirements and possible contributions to the Central Fund, [Lloyd's is] working on a clear set of performance standards so all franchisees will be clear what standards they have met and what will be the penalties for falling short," she said.
She described the plan as "pretty high level."
"We will be working with the market to put the flesh on the bones over the coming months," she said.
In recent months in the aftermath of Hurricane Katrina, a group of new insurance companies have been set up in Bermuda aimed at possible capacity shortages for certain coverages.
Among the goals stated in the document is a capital framework that helps franchisees access flexible forms of capital at competitive costs.
In addition, the plan seeks to offer asset admissibility criteria that permit improved investment returns and the provision of underwriting capital in a cost-effective and convenient manner
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