Lloyd’s of London is regarded by many industry stakeholders as the home of insurance. For Australian brokers it’s a market where they often place business but very rarely, if ever, visit. McLardy McShane, the national insurance brokerage headquartered in Melbourne, made that happen recently for 14 staff members.
The travel party was led by national manager of broking Nick McLardy (pictured, front row, second from right).
McLardy has a decade of industry experience, much of it in leadership roles. He’s also the son of CEO Don McLardy and said this UK tour for employees grew out of a Lloyd’s visit three years ago when he and his father met with underwriters from the firm’s professional indemnity (PI) markets.
Last year the tour was just for younger employees but this time, said McLardy, they opened it up to everyone and received more than 30 nominations.
“I think the main educational piece for our team was understanding how Lloyd’s actually works,” he said.
From the other side of the world, he said, terms like line slips, binders and fac (facultative) insurance probably don’t make a lot of sense to many working in the Australian insurance industry.
The travel party had the opportunity to speak with members of London syndicates and brokers who deal with the McLardy McShane firm on a daily basis to find out exactly how they place the business.
McLardy said this experience was “particularly useful” for regional brokers and also authorised representatives (ARs) who often aren’t placing their Lloyd’s business directly with London.
“I think the education piece was also further understanding how the Lloyd's market actually impacts the Australian insurance market,” he said.
Some of this significance was underlined by McLardy’s favourite stops on a general tour of the building.
“The history of the place is striking to anyone, whether you're in insurance or not,” he said. “I love the bell [Lutine Bell] and all the documents with information surrounding the Titanic.”
There’s also the underwriting floor, he said, with 60 odd syndicates where brokers literally walk around and visit different boxes where the underwriters sit, each trying to fill their placements.
He also noticed an important cultural difference that struck him this time and on his previous visits.
“Everyone who is in the insurance industry in London really takes pride in the work they do,” he said. “Often in Australia, I think, we shy away from the fact that we're in insurance.”
The centuries-old history of Lloyd’s and location in the financial heart of London, he suggested, likely contributes to this.
He hoped that one day Australia’s insurance professionals can take similar pride in their work as “a good industry with a pivotal role in the economy.”
After three days in London, the group also visited The Soar Foundation in Dublin, one of the firm’s charity partners. This foundation was inspired by The Reach Foundation in Melbourne that was started by Dublin footballer and Aussie Rules legend, Jim Stynes. Both aim to help teenagers.
“We helped seed fund that organization when they set up about 10 years ago over in Dublin,” said McLardy, whose firm also has a long relationship with Reach.
He said the inclusive and empathetic philosophy behind these youth programs is something his firm promotes internally throughout their company.
“It's a really valuable part of the trip,” he said. “We've actually agreed to sponsor an exchange program, so a Reach facilitator will go over to Dublin every summer and an Irish Saw facilitator will come over to Melbourne and spend the summer over here with Reach.”
Other Australian insurance professionals have described their Lloyd’s experiences to Insurance Business.
Chief client officer Pete Diskin is Gallagher Bassett’s lead representative in the Lloyd’s market. In an IB interview early this year he explained the boxes occupied by the syndicates.
“The box is where the underwriter sits and the broker goes in with the business to actually sit with the underwriter and do a deal to place that business,” said Diskin. “That notion around a box actually emanates from Edward Lloyd’s Coffee Shop.”
He said there are two seats at one end for the brokers who come in with their slip. The underwriter then decides, said Diskin, what percentage of the slip, if any, they’d like to take. Then the broker moves around the building to other underwriters until his or her slip is filled 100%.
Diskin also appreciated the building’s architecture.
“It’s a very iconic building,” he said.
Others were not impressed.
Hardy said the “amazing building” was not to her taste.
Have you visited Lloyd’s of London? What struck you on your visit?
