Lloyd’s commits to efficiency; 2017 market subscription cut by 10%

John Nelson and Inga Beale, the chairman and chief executive of Lloyd’s respectively, have confirmed that the market’s 2017 subscription will reduce by 10 percent in a joint year-end statement.

In a letter that also warned on tough trading conditions, the importance of efforts to modernise the market and reiterate their position on Brexit (notably the importance of retaining current trading rights with the EU), they also stressed that the market will look to ensure it remains efficient for companies using it.

“In these tough times we are continuing to review our costs and ensure we are set up to deliver our service to you in the most effective and efficient way possible,” they wrote.

“To this end, we are making changes to our organisational structure with effect from 1 January 2017 as part of the Corporation Operating Model programme. Further changes will be announced in due course.

“We are reducing 2017 market subscriptions by 10 percent.”

They also stressed that despite the challenges in 2016, the strength of Lloyd's financial position has continued to improve, with ratings at an all-time high. “And the Lloyd's brand and reputation worldwide remains best in class for insurance. We are determined to protect these attributes and will be working hard next year to ensure that wherever we are operating, we do so in a way that is responsible, sustainable and in keeping with our preeminent position in the industry,” they wrote.

They also confirmed that in terms of the Corporation of Lloyd's executive team Jon Hancock, Paolo Vagnone and Hilary Weaver have been appointed as performance management director, chief strategy officer and chief risk officer, respectively.

“This has significantly reinforced our team. In terms of our talent programme, this year's highlights included rolling out the Dive In festival internationally and delivering a rich programme for Learning Week, in collaboration with the LMA,” they wrote.

They added: “In conclusion, this has been a challenging year but one in which we have made good progress on all the key strategic areas. The focus on attracting new business, growing existing business and doing so in the most efficient way possible - underpinned by strict underwriting discipline and prudential market oversight - is the right approach.

“We look forward to working with you in the coming year - and to welcoming a new chairman!”