Lloyd’s Performance Management Directorate has warned managing agents they will close down consistently lossmaking syndicates if they don’t turn-around as part of a major escalation in the Corporation’s oversight. In a recent market meeting Lloyd’s managing agents were given a warning that Lloyd’s is scrutinising all syndicates that have been unprofitable for the past three-years.
Managing agents for these syndicates have been instructed to submit a credible, near-term route to profit and a longer term three-year plan. Failure to agree a credible plan will mean Lloyd’s will close the syndicate. Additionally, Lloyd’s has asked all managing agents to look at their ten worst performing portfolios and either put in a credible remediation plan or put the portfolio in run-off. They also referenced the possibility that Lloyd’s might even shrink its revenue for the first time in over a decade warning that growing out of a problem cannot be the answer.
They also reassured incumbent syndicates that there will be a high bar for new entrants. Separately Lloyd’s has instructed all syndicates to provide quarterly reports and an action plan on the underwriting performance of seven under-performing classes of business as part of a wider initiative to improve the market’s poor results.
The seven classes are marine hull; cargo; power; yacht; international professional indemnity; overseas motor; and international and D&F property. Noticeably this did not include Energy which has made a pure underwriting loss for the past 2 years but appears to have escaped due to being in profit in both 2016 and 2017 from reserve releases, exchange rates gains and investment income.
Mat Dan have launched an upgraded StormTracker2.0 APP – which will provide an indication of damage potential to offshore assets in real time as hurricanes move through the Gulf of Mexico. The upgraded APP provides real-time wave and wind information and detailed asset information that provides automated color-coded risk/damage likelihood as a storm progresses. This allows the user to see changes in potential risk to their assets, once entered. The app can be downloaded from http://st2.matdan.com/
The London Joint Rig Committee (JRC) Loss of Production Insurance (LOPI) Wording (JR2005/003A) has recently been reviewed by a sub-committee of the JRC. This sub-committee has drafted a proposed update to the wording that they presented to the market for a consultation period for comments to be made. JLT have provided our feedback and feedback collated from our clients and await the final version.
Hamish Roberts has been appointed to lead JLT Speciality’s Power business based in London; and to coordinate with JLT’s Power specialists around the globe, in line with JLT’s goal to be the leading global specialist risk advisor and broker. Hamish previously built and led global Power practices for both Aon and Marsh.
Download Energy Newsletter
If you require any further information, please contact John Cooper, Managing Director on +44 (0)20 7466 6510 or email firstname.lastname@example.org.