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A Glass Half Full Approach

14th November 2019

I’ve been recruiting in the Lloyd’s market since 2017 and I’ve spent this time increasing my knowledge and observing an incredible amount of change in a relatively short time. Our marketplace is unique, and change has been beneficial but also harsh to some unfortunate victims.  For some Lloyd’s entities exiting the marketplace, that change has proven fatal.

With reductions in capacity, regulatory pressure and a directive from Lloyd’s, remediation work has followed from Managing Agents and their syndicates. This process is not new and is not exclusively reserved for Lloyd’s (the company market has followed a similar policy) however analysts at Fitch Ratings Agency mooted that it could go further still. Pricing initiatives are increasing rates and as the market hardens this should plateau, however, is enough being done to improve the bottom line?

The statistics would say yes. Lloyd’s expense ratio improved from 39.3% in H1 2018 to 38.1% in H1 2019. A modest improvement but an improvement nonetheless as further operational change occurs and innovation is implemented across market disciplines, most apparent in front line disciplines such as Underwriting and Broking.

We are now seeing more risks than ever bound on PPL (initial reports detail how in-scope risks accepted on the platform increased to 65% from 50% in Q2 2019), other digital innovators creating user friendly digital platforms and programs designed for Lloyd’s to encourage easier access to an often perceived silent giant of a market. For example, the Syndicate in a Box idea set to commence Underwriting promotes the entrepreneurial mantra Lloyd’s is renowned for and utilises streamlined operational efficiencies.

As a specialist provider of recruitment solutions to this great marketplace, we must adapt and change too. Comparatively with 2018, I have been involved with many more innovative projects with clients creating new ways of doing business aimed at profitability, whilst adhering to efficiency drivers, and yet still retaining the spirit of Lloyd’s.

If we as recruiters are busy it often means the market is buoyant and I can certainly get on board with that glass half full approach! If you’d like to connect, chat or meet to discuss the market or how I or Arthur can assist you, please feel free to reach out on 0203 5877 471 or td@arthur.co.uk.

 

By Tom Davey

 

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