Market modernisation, Brexit preparations, and underwriting systems upgrades are the three most pressing concerns for Lloyd’s market Chief Operating Officers (COOs) in 2018, according to a recent survey by the Lloyd’s Market Association (LMA).
The LMA’s research found that, within market modernisation initiatives, COO’s prioritised delegated authority transformation, with 93% of respondents confident that straight-through processing is a viable option for delegated authority relationships.
Brexit was also considered to be both an internal and market-level priority issue by a majority of COOs, with managing agencies reportedly favouring the use of the Lloyd’s Brussels subsidiary (57%) over the creation of their own EU subsidiary (43%).
Additionally, the survey observed that all respondents were planning underwriting systems upgrades over 2018, with almost 77% also planning to upgrade coverholder reporting systems and processes.
Tom Payne, Market Operations Director at the LMA, commented: “It is widely understood that the Lloyd’s market faces an increasingly challenging environment, with COOs having a key role to play in this changing landscape. The LMA Operations Committee (LMAOC) is uniquely placed to represent the operational community in areas where working collectively can drive clarity and value.”
Sheila Cameron, Head of International Operations at Navigators and Chair of the LMAOC, added: “The LMAOC felt that the voice of the COO needed to be more clearly articulated in the context of market modernisation, operational improvement and expense management. This survey, the first of its kind to be commissioned, will help to achieve this.
“For the first time, the views of Lloyd’s market COOs have been brought together, assessed and collated with the intention of articulating the business and operational challenges faced by managing agents.”
