Lloyd’s to cut rates

Lloyd’s insurers will need to review their 2017 business plans if they are to cope with the general downturn in premium rates, Lloyd’s said yesterday in its annual end of year email.

“Current year underwriting is not profitable in aggregate at the moment”, said Lloyd’s Chairman John Nelson and CEO Inga Beale. Lloyd’s is lowering 2017 market subscriptions by 10%. Underwriters at Lloyd’s lost money in 2016.

Lloyd’s continues to make the case to the UK government for retaining current trading rights with the EU, but was also finalizing work on alternative trading options as part of its Brexit preparations. “This is designed to ensure the Lloyd’s market will be able to continue to trade with the EU – albeit with a different structure,” said Lloyd’s. It will probably establish a subsidiary in one EU jurisdiction to passport its services in, although Lloyd’s could also open local branches across the EU. It has not yet gone public on its preferred “alternative” option.