Update on the Lloyd’s market
Posted 17/03/2020 – Insights
Outgoing PMD chief to delay departure.
It has been announced that Jon Hancock, outgoing head of the Performance Management Directorate, is to delay his departure by two months until the end of May to assist the Lloyd’s market in its response to Coronavirus.
Hancock resigned from the Corporation in January and is currently serving out his notice period. He was due to begin his new role as CEO of the international division of AIG General Insurance this spring.
It has yet to be reported whether the decision will postpone his arrival at AIG or merely limit his garden leave.
Coronavirus market return
The news of Hancock’s delayed departure follows confirmation that Lloyd’s has instructed managing agents to submit returns setting out syndicates’ potential Coronavirus exposures and associated future losses. This exercise was also carried out following hurricanes Harvey, Irma and Maria in 2017.
At this stage it is expected that most exposures will centre around the contingency, trade credit & political risks, directors’ and officers’ (D&O), accident and health (A&H) and marine (with particular reference to cruise liners) subclasses.
We will keep you posted once we see our syndicates’ responses.
Lloyd’s e-trading trial completed
Lloyd’s closed its trading floors on Friday 13th March to test the market’s ability to trade using electronic systems.
Rather than usual face-to-face trading, business was carried out using PPL, the London insurance market’s electronic placing platform which enables brokers and underwriters to quote, negotiate, bind and endorse business digitally.
The original purpose of PPL was to support face-to-face negotiations, removing paper from the process and creating a digital information flow and audit trail.
Lloyd’s CEO John Neal has reported that the trial “was deemed to be successful but the market reopened as normal on Monday and will continue to offer coverage to customers worldwide throughout this crisis”.