Lloyd’s votes to end broker protectionism
Lloyd’s brokers are set to lose their exclusive access to the market following a vote by members in favour of far-reaching Treasury reforms.
The reforms will sweep away long-standing restrictions requiring managing agents to deal only with Lloyd’s brokers, freeing them up to accept business from other intermediaries and direct from policyholders.
In an extraordinary general meeting in London last week, 99.14% of Lloyd’s members approved the changes, which will also allow Lord Levene to serve another three years as Chairman. Just over half the members turned out to vote.
In its proposal for a legislative order to change the 1982 Lloyd’s Act, the UK Treasury says brokers add 5% to the cost of deals.
It claims removing broker privileges could save as much as £200 million ($412 million) a year and £1.2 billion ($2.5 billion) over the next 10 years,
The reforms will sweep away long-standing restrictions requiring managing agents to deal only with Lloyd’s brokers, freeing them up to accept business from other intermediaries and direct from policyholders.
In an extraordinary general meeting in London last week, 99.14% of Lloyd’s members approved the changes, which will also allow Lord Levene to serve another three years as Chairman. Just over half the members turned out to vote.
In its proposal for a legislative order to change the 1982 Lloyd’s Act, the UK Treasury says brokers add 5% to the cost of deals.
It claims removing broker privileges could save as much as £200 million ($412 million) a year and £1.2 billion ($2.5 billion) over the next 10 years,