Following an industry “dry run” exercise in November 2016, Lloyd’s has published a report setting out six principles on how it would respond to a market turning event, which causes significant impact and could cause a rapid upturn in insurance pricing. The principles are as follows:
- Principle 1: Market stability and payment of claims
- Principle 2: Management of failing syndicates/members
- Principle 3: Stakeholder/data collection/coordination and communication
- Principle 4: Support the market
- Principle 5: Accelerate key processes
- Principle 6: Lloyd’s priorities
Principles 1 -3 fall under a stage that Lloyd’s has called ‘Crisis Management’, which focuses on solvency and market stability. The remaining principles fall under the ‘Opportunities’ stage, which as the name suggests is intended to support the market so that it can take advantage of the commercial opportunities.