Neal faces wide range of problems at Lloyd’s
Lloyd’s is in danger of falling behind the rest of the re/insurance industry if its new chief executive officer John Neal does not get a firm grip relatively quickly, according to Gavin Coull, partner and head of reinsurance at legal firm BLM.
“The Lloyd’s market has to change,” Coull said.
“It needs to stop being distracted by the buzzword of insurtech, which could be a fig leaf to cover a lack of transformation. There are possibly too many new entrants coming in, and Lloyd’s is now also being challenged by insurance-linked securities in London.
“Are they cutting the loss-making syndicates too late, or is the damage too deep already?”
Coull said that lines of business in many cases should have been looked at earlier and pointed to expenses as being a particular problem for Lloyd’s, and a huge operational problem for the market.
He said that his personal bugbear was claims, adding that brokers were ruling the roost, and that Lloyd’s needed to get back to technical claims management. He said that especially during soft markets how brokers handled claims could sometimes lead reinsurers to being put at a disadvantage.
Coull explained that during a soft market Lloyd’s often tries to find new areas to cover, the problem being that the syndicates might not understand those new lines in sufficient detail, citing cyber as an example.
“If you don’t understand what you’re writing then there might be a short-term gain but not over the long term,” he said. “Underwriters need to stick to what they do best and to do it well.”
Coull also claimed that Lloyd’s has been far too sanguine when it came to the UK’s departure from the EU, especially over EU-US cover arrangements and passporting, among other tangible issues.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Insurers brace for a hit as Typhoon Mangkhut lashes HK and China
Florence losses likely to be largely retained by insurers: Moody’s
Fidelis replaces chief underwriting office in restructuring move
Sedgwick creates biggest global marine claims team
Typhoon Jebi expected to cost up to $5.5bn: RMS
Hurricane Florence floods devastate North Carolina
Insurtech Brolly files first own claim with Hiscox after burglary
Aon hires PwC exec to lead EMEA M&A infrastructure
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze