Lloyd’s is acting to adapt to changes sweeping across the insurance sector and avoid meeting the same sorry fate as Kodak, which used to dominate the camera industry.

Initiatives include adopting a more risk-based approach to work with the market, reducing expenses, raising efficiency and speeding processes.

“Kodak’s story is a salutary lesson in taking heed of what is going on around you – and then of acting on it in the right way,” Performance Management Director Jon Hancock said.

“In short, the company did everything right – except for one key thing: it failed to truly understand the implications of the new world it was investing in.

“While the Lloyd’s market is changing in response to the evolving business landscape, we all must guard against only dangling a toe in the water. Instead, we must dive in and fully immerse ourselves in the waters of change.”

The business landscape, under pressure from low interest rates, has been made tougher by the emergence of new distribution models, tech-based insurers and peer-to-peer rivals, among other threats.

Mr Hancock says Lloyd’s cannot rest on its laurels despite earning pre-tax profit of £2.1 billion ($3.55 billion) last year, because the bulk came from investment returns and one-off foreign exchange gains.

“Dig under the surface of the £2.1 billion profit and we see a worrying trend.

“These are some of the most difficult market conditions many of us have faced in our careers. And it’s a future that has a lot of uncertainties.

“The conditions we are facing are tough – and we have to assume that this low interest, highly capitalised, competitive environment is here to stay.

“My team’s job is to make sure that we can help the market do what they do best: running their businesses and delivering growth that’s sustainable and profitable, and where performance dips, help them get back on track.”