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by : Alpha Insurance Analysts

The biggest overhaul of Lloyd's governance since the 1982 LLoyd’s Act took effect yesterday, with the coming into force of a Legislative Reform Order (LRO) that will open up the market to all brokers.

The LRO updates governance provisions in the Lloyd’s Act 1982, to reflect changes in the regulatory environment, and to remove restrictions which get in the way of the future development of the insurance market, the government has said.

Financial Services Secretary to the Treasury Paul Myners said: “Maintaining the City’s competitiveness is a key priority for the Government. These changes will help Lloyd’s to maintain and enhance its position in the global insurance market. I am delighted that the Government’s proposals have received such widespread support.”

The coming into force of the LRO follows a public consultation by HM Treasury, and approval by both Houses of Parliament.