The LMA: A Year in Review
Competitive operating conditions, a series of natural catastrophes, and the UK’s impending exit from the European Union presented our members with challenges on many fronts in 2017. In such times, the Lloyd’s market looks to and expects the LMA to deliver tangible benefits to its membership. This is only possible through the hard work of our in-house technical teams and the essential support and insights from the LMA’s various committees and panels. I would like to highlight some of the past year’s achievements.
Cyber risks have become a major, cross-class area of focus. The LMA’s underwriting team published Cyber Risks And Exposures Model Clauses Review in January 2018. The report analyses model clauses and the most common exclusions and write-backs used in all lines of business. Separately, the Joint Rig Committee published an upstream energy technical review from a cyber perspective, while the Onshore Energy panel published a risk engineering report on cyber security and safety.
The Single Claims Agreement (SCAP) went live on 1 February this year and reflects an enormous amount of work in 2017. It will significantly speed the claims agreement process, reduce costs, and deliver an improved service to London’s customers. This development was collaborative effort of the LMA, IUA, LIIBA, and Lloyd’s.
Other significant claims initiatives include LMA funding of a satellite imagery and intelligence service for all Lloyd’s managing agents to help assess the extent of damages and losses from major catastrophes quickly, and the LMA’s Expert Management Hub, which will enable managing agents to record, track, and control budget and spending on claims experts.
As Brexit unfolds, the LMA’s work has two strands: ensuring our members can, through Lloyd’s, continue to write EU business, and working with government and regulators to get the best possible outcome for our market and our customers. We will continue discussions directly, and through Lloyd’s and the LMG, both for a transition period and for mutually beneficial trading relationships after Brexit.
The LMA’s legal and compliance team has led the UK insurance industry’s work on the General Data Protection Regulation (GDPR). The Association was successful in obtaining an important amendment to the Data Protection Bill which introduces a new legal ground for data processing by the insurance sector.
Lloyd’s has now mandated the use of electronic placing systems. The LMA supports this position, and made five recommendations which our members saw as crucial to success. Lloyd’s is actively progressing our ideas.
Also worth noting is the LMA’s renegotiation of the market’s agreement with DXC for central processing. The new contract will save the London market £100 million over the next five years.
These achievements are the result of coordinated effort by many hundreds of individuals. My sincere thanks go to all the market practitioners and advisers who sit on our Board and on our committees, panels and groups. Their help throughout the year, their invaluable commitment to working with us on market initiatives, and their efforts to address and resolve market issues are of great benefit to all.