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Lloyd’s sets out crisis contingency plans

Lloyd’s has formulated guiding principles to ensure a quick and effective response to market-turning events – situations that causes significant impact and could trigger a rapid rise in insurance pricing.

The last clear market-turning event was the September 11 2001 terror attacks, when all classes of business recorded rate rises of 40%.

“One important area where we can help is to make sure the Lloyd’s market is in a position to act swiftly and decisively to any future market-turning events,” Director of Performance Management Jon Hancock said. “This is about stronger, smarter oversight.”

“We want to make it as straightforward as possible to raise new capital. Doing so will ensure Lloyd’s is even better prepared for once-in-a-generation, market-turning events.”

The six principles, influenced by the “dry run” exercise carried out by the London market in November last year, are grouped under crisis management and opportunities.

They are: market stability and payment of claims; management of failing syndicates/members; stakeholders/data collection/co-ordination and communication; support the market; accelerate key processes; and Lloyd’s priorities.