Lloyd’s addressed the market on Wednesday, with topics including market oversight plans for 2023.
Led by chief of markets Patrick Tiernan (pictured), the session also featured market oversight director Peter Montanaro and Lloyd’s chief actuary Emma Stewart. The latter talked about 2023 capital impacts, discussing the subject of capital resubmissions and what is expected of Lloyd’s syndicates in this regard.
The market oversight director, meanwhile, outlined the key themes that will drive market oversight next year – including reinsurance issues, operational and cyber resilience, customer focus, and regulatory and financial crime. Other drivers also span economic uncertainty, climate change, and culture and ESG (environmental, social, and governance).
In the fourth quarter market message, Montanaro also discussed the changes to delegated authorities oversight, as well as the areas of focus for 2023, such as enhancing claims performance at Lloyd’s.
During the session, Tiernan stated: “Recent weeks have demonstrated a level of dislocation in the property and specialty insurance and reinsurance markets that is beyond what would have been reasonable for you to forecast when you submitted your plans to us in September.
“But before I get into the detail, I want to stress that we come to you today in upbeat mood, confident that the opportunities can be taken, confident that the downside risk can be managed, and confident that any negative contagion is something syndicates can address so as not to hold back the Lloyd’s market as a whole.”
The Lloyd’s chief of markets went on to declare: “This will require us to up our game over the coming weeks and months. While our task remains to assess the potential risk – and we will not compromise on that – speed, decisiveness, and a solution-focussed attitude is what you can expect from us.”
Key takeaways from the quarterly message include the planned gross written premium of £56 billion for 2023 and expected material changes to property and war-impacted specialty classes.
“The Lloyd’s market performance has proven resilient this year in the face of significant external strain,” asserted Tiernan. “Lloyd’s is financially and operationally prepared to support appropriately capitalised syndicates with a track record of profitable underwriting.”
You can listen to the full Lloyd’s Q4 market message here.
