Lloyd’s is closing its underwriting room for 24 hours – for the first time in its 330-year history.

The “stress test” of the market’s electronic placement platform and other trading alternatives is part of stepped-up preparations for a possible escalation in public health measures to contain the coronavirus pandemic.

The temporary shutdown started at midnight today, London time.

“Lloyd’s business continuity team has assessed the Lloyd’s market’s readiness to continue trading if the underwriting room needs to be closed at any point,” the market says in a statement.

“This 24-hour exercise will provide valuable information on the real-life effectiveness of the [emergency trading] protocol. Relevant regulators have been informed of these plans.”

The underwriting room at Lloyd’s headquarters in London is where risks are placed physically.

The announcement from Lloyd’s followed the World Health Organisation labelling the coronavirus outbreak a pandemic. It is the first pandemic to be caused by a coronavirus, the UN body says.

Lloyd’s has previously assured market participants its has business continuity plans in place to ensure trading globally is not disrupted if the spread of the coronavirus outbreak worsens.

Its emergency trading protocol involves backup arrangements for placement and claims handling.

“In circumstances where it is not possible to access the underwriting room and/or for employees of some managing agents [and] Lloyd’s brokers, Lloyd’s has put in place this protocol to supplement face-to-face and electronic trading that can take place elsewhere to ensure that all necessary insurance and reinsurance can continue to be placed,” the protocol says.

Existing cover can also be extended when the emergency trading protocol is activated.

The protocol is designed also for “time-critical aspects of claims handling and determination” to be undertaken remotely using alternative mechanisms.

Click here to read Lloyd’s emergency trading protocol.