A joint report from the Lloyd’s Market Association (LMA) and Aon has shed light on how capital providers view investing in Lloyd’s and identified key areas for improvement to enhance the market’s attractiveness.
Titled “Capital Insights: Understanding Investor Experiences at Lloyd’s,” the report reaffirmed the strong position held by Lloyd’s as an investment hub while at the same time outlining several opportunities to improve accessibility and transparency.
Simplifying the market’s processes and clarifying costs, for instance, could enhance investor satisfaction. Based on the common concerns raised by capital providers, recommendations include streamlining certain regulatory hurdles and onboarding procedures, providing timely access to performance data to track investments, and having clearer guidance on earlier capital distributions.
Meanwhile efforts are already underway at Lloyd’s to address some of these issues, with collaborative efforts to expedite the improvements and make the market more accessible to diverse investors.
“Our conversations with capital providers highlighted their positive experience of working with members of the Lloyd’s executive team, who are willing to take a commercial and pragmatic approach to facilitate what investors want to achieve,” LMA finance & risk director Paul Davenport (pictured) noted.
“While this is encouraging, there remains work to be done to enhance underlying processes for getting things done in the market.”
Davenport added that while many investors were pleased with the support received from members’ agents, particularly during the initial investment phase, there were still calls for streamlined processes across the board.
Joanna Parsons, Aon’s strategic growth leader for capital advisory in the UK, highlighted: “This research tells us clearly that there is appetite from new capital to enter the Lloyd’s market.”
She also pointed out that current favourable market conditions are a significant factor driving this interest but emphasised the need for long-term strategies: “A key focus of all the market players should be about ensuring the longer-term commitment and participation of a diverse variety of capital providers, even when underwriting conditions are not quite as attractive as they are today.”
Parsons concluded by urging all stakeholders to work together to address the report’s findings, which can be accessed here.
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