Summarises the key aspects about Lloyd's Strategy 2010 - 2012.

1. Lloyd’s Strategy
2010-2012
April 2010

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Lloyd’s vision
 Key Characteristics
 A subscription market backed by mutual security
 A broker market; brokers are Lloyd’s distribution arm and are critical to
its ongoing success
 A London-based business
 Diversity across all aspects of the market
 Role of the Corporation
 To undertake the overall risk and performance management of the
market
 To maintain and develop the attractiveness of the market
“ To be the market of choice for insurance and reinsurance buyers
and sellers to access and trade specialist property and casualty risks.”

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Challenges in Lloyd’s competitive
environment
 Maintaining underwriting discipline
 Maintain London’s position as the leading centre for specialist
(re)insurance
 Maintain access to business in the face of a changing distribution
landscape
 Maintain the attractiveness of Lloyd’s compared to other specialist
insurance centres
 Protect Lloyd’s capital, licences, brand and ratings

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The market's strategic priorities for the
plan period
 Maintain and develop the attractiveness of Lloyd’s
 Maintain and promote the competitiveness of London as a financial
services centre
 Continue to improve the efficiency of business flows and placement,
accounting and claims handling
 Protect Lloyd’s capital and licensing advantages against an evolving
regulatory landscape
 Resolute focus on underwriting discipline and risk management
 Continued application of performance management framework
 Ensure high quality risk management developed and embedded at
individual and aggregate levels

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Corporation priorities for 2010
Performance
Management
Solvency II The Exchange
Claims
Transformation
Access to
Business

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Trends and issues in the global insurance
industry
Geographical balance
 The Lloyd’s market portfolio is heavily focused on North America and
the UK, with limited penetration in the large developed Continental
European insurance markets or smaller insurance markets in
developing economies
Market portfolio mix
 Lloyd’s market has seen a gradual shift towards more catastrophe
exposed business, particularly in the US
Distribution
 Continued structural changes within the broker market
 Concentration of business with three largest brokers

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Lloyd’s response to these global
insurance trends and issues
Geographical balance
 Established markets: London-based model using broker distribution and
making use of coverholders to access ‘smaller’ specialist business
 Developing markets: existing trading centres remain but preferred model
elsewhere is as a London-based (re)insurer
Market portfolio mix
 Market participants believe opportunities exist with small/medium specialist
risks
 Support the business development activities of managing agents, promote
Lloyd’s in local markets, secure regulatory access where required,
streamline and simplify access to Lloyd’s
Distribution
 Work closely with all distribution partners
 Areas of focus:
 Development of the coverholder channel
 Strengthening the Lloyd’s distribution chain process and operational
efficiencies
 Broker relationship management

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Strengths of the Lloyd’s market
 Performance and risk management
 Access to business
 Capital efficiency and chain of security
 Ratings
 Brand
 Diversity
 Subscription market
 Market cohesion

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Lloyd’s response: maintaining and
promoting Lloyd’s strengths
 Future activity in these areas will be focused on maintaining these
strengths not on any major new strategic initiatives
 Two major streams of activity already underway, enhance Lloyd’s
strengths, and continue to be a high priority
 Solvency II
 Performance management

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Investment for the future: Operating
Environment
Future state of the Lloyd’s operating environment
 An operating environment in which data is “entered once and used forever”;
with common ACORD standards
 It will be as easy to do business with Lloyd’s as with any other insurance
market
 This will be delivered through four major initiatives:
 The Exchange
 Lloyd’s Information and Reporting Project
 Claims Transformation
 Future Processing Model
Response over the plan period

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 People are the market’s main assets
 Work will continue to develop skills and talent across Lloyd’s market in
partnership with key market bodies (LMA, LIIBA)
Investment for the future: Talent
management and development

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 Operating at Lloyd’s provides market participants with access to a range
of Corporation services e.g. tax and regulatory reporting, central
settlement
 A lot will be demanded of market participants over the plan period e.g.
market reform initiatives, Solvency II
 The Corporation will support businesses through this transition period
wherever possible
Changing marketplace

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Visit lloyds.com/strategy for more
information

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