Lloyd’s strategic outlook for 2011-13 warns of more challenging times ahead, but says the key is to continue focusing on underwriting disciplines.

The global insurer says economic recovery remains slow, with many of the market’s clients still facing “daunting times ahead”.

CEO Richard Ward says catastrophes this year have not led to any real movement in rates. And although there is ongoing economic turmoil in some countries, the full impact of recession-related claims remains to be seen.

Soft market conditions are expected to continue, with no strong drivers for change becoming apparent.

“While rates for some lines of business are improving, the overall rating environment remains difficult,” the report says.

Property rates “remain challenging” while casualty rates are under even greater pressure.

But Mr Ward says there will be a continued emphasis on underwriting discipline in the market.

“The primary difference of this strategy is one of emphasis, not direction,” he said. “The first level of responsibility for disciplined underwriting remains with the board of each managing agent.”

He says Lloyd’s will work over the next three years to build a more efficient market from the start of a business transaction to the point when a claim is finalised.

“We will also continue to look at how to ensure our distribution network assists smaller, independent brokers to bring business to Lloyd’s,” he said.