Lloyd’s of London review will focus on whether to launch new global markets
LLOYD’S of London is considering launching a raft of new insurance markets around the world in its landmark strategic review.
The move could capitalise on the near-failure of US rival AIG and boost the group’s global presence.
Sean McGovern, the market’s general counsel who is heading up the review, one of the biggest in Lloyds’s 320-year history, told City PM dozens of insurers and brokers have already been consulted.
But new Lloyd’s centres – in the same form as the Lloyd’s Asia market that has 15 insurance syndicates drawing business from around Asia – would be very costly, McGovern said. Many Lloyd’s participants would rather that Lloyd’s insurance brokers increased their presence in global markets and drew business to existing markets directly, he added.
“The fact Lloyd’s is a market rather than a company is one of its greatest strengths, but has also been one of its weaknesses. Defining a single direction has often been tough as getting agreement with our 80 syndicates has not been easy at times,” said McGovern. The current offshore centres might even be scaled down if Lloyd’s can devise a way to attract business more efficiently.
The review is now looking to conclude the meetings and crunch the numbers, with an eye to launching a draft strategic plan for consultation with Lloyd’s participants, in October.