There can be no resting on laurels at Lloyd’s of London, warns Rolf Tolle.
Extolling the virtues of what I believe is a truly amazing market is a subject dear to my heart. We should be proud of our recent achievements and proud also of Lloyd’s as a whole. However, we must not sit back and think our job is done.
It is important to understand our history when addressing the challenges that we face today. The Lloyd’s market has for centuries been a centre for entrepreneurial underwriting and a subscription market that spreads risks and provides capacity.
We have a strong performance management framework which is at the core of the franchise concept. This covers every aspect of a managing agent’s business, creating a disciplined environment and banishing forever the view that Lloyd’s is a place of boom and bust.
The market also has a unique concentration of talent. We have a marketplace full of experts, able to make quick decisions and create bespoke solutions every day.
“There are stars leading the field but also underperformers
Rolf Tolle Director, Franchise Performance at Lloyd's
At this challenging time it is imperative that we show genuine underwriting discipline. People talk about it but we need to believe in its value throughout the market. We are also enhancing the market’s ability to prepare for major losses. We look at what could go wrong, and ensure the market is ready; looking at the whole market and making sure it is not over-exposed.
To complement this, we need to improve our processes. An efficient marketplace means reduced costs and increased competitiveness. Unfortunately, progress has been mixed. There are stars leading the field but also underperformers. This goes for the whole of the London market.
There has been a lot of debate about our admissions policy. New entrants are critical to maintaining the attractiveness of the market. The market needs space to develop and grow. I am not advocating opening the floodgates but we have a responsibility to ensure Lloyd’s remains a vibrant marketplace and new businesses that add value are crucial to this.
So we need to carry on doing what we do well and always challenging ourselves to improve. We must embrace our strengths, which I believe are the subscription market, diversity of capital and diversity of players. We must recognise these strengths instead of always pointing out weaknesses.