The UK may be in the midst of a prolonged recession, but Lloyd’s has announced an ambitious new strategy – ‘Vision 25’ – which it hopes will improve the situation, and make London in general and Lloyd’s in particular become the “global hub for specialist insurance and reinsurance by 2025.”
The presence of Britain’s Prime Minister David Cameron and Lloyd’s Chairman John Nelson in unveiling Vision 25 underscored the importance attached to the initiative. The two leaders came together in the Lloyd’s building’s famous Underwriting Room, where they set out “bold plans to grow Lloyd’s business, especially in the faster growing markets, and to truly internationalize the Lloyd’s underwriting community,” said a Lloyd’s press bulletin.
Nelson described Vision 2025 as “a rare breed in these challenging economic times. It is a strategy for growth. Lloyd’s is a profitable international business but we want to make sure we become the true global hub for specialist insurance and reinsurance.
“Vision 2025 will be a real challenge for the Lloyd’s market to execute. The benefits, though, could be substantial, not only for Lloyd’s but also for the City of London and the UK economy.”
Prime Minister Cameron stated: “I welcome the drive and ambition with which Lloyd’s is pursuing plans for where it wants to be in 2025. This is a great example of the bold and dynamic approach we need as we work to foster sustainable economic growth across the country.”
Lloyd’s noted that Vision 2025 is the result of consultations with the Lloyd’s underwriting market and its customers, the brokers. It gave the following “highlights,” covered in the plan: — Lloyd’s to be the global center for specialist insurance and reinsurance — Growth of Lloyd’s premium from its established markets will be at least in line with the GDP growth for those markets – but greater growth will be achieved from the faster growing markets
— The capital base of the Lloyd’s Market will be more diversified, with a greater contribution from the leading growth countries
— The Lloyd’s underwriting community will be truly internationalized with a substantial number of overseas nationals in the market
— Lloyd’s will be a broker market, making maximum use of brokers’ international networks
— Lloyd’s will have a small number of powerful overseas hubs in certain major overseas markets
If the plan is a success it will result in the City of London becoming “the major global center for specialist insurance and reinsurance.” As Lloyd’s has been more or less just that, as a major player in those specialties for over 300 years, that goal might be achievable.
Lloyd’s Chief Executive Richard Ward pointed out that “Lloyd’s strength is drawn not just from history and experience, but from constantly innovating and adapting. This vision sets out ambitious plans for the Lloyd’s market to grow, internationalize and diversify. The level of interest among high quality overseas insurers in coming to Lloyd’s is high, but we will be managing the entrance of these new providers carefully. This is a strategy of steady progress, not rapid revolution.”
Source; Lloyd’s of London