Lloyd's streamlines 2021 business planning
More syndicates will be able to use a simplified approval process
Lloyd’s is streamlining its approach to syndicate business and capital planning for the 2021 year of account in response to the pandemic.
The corporation is introducing a three-tiered approach to business plan approval, extending its simplified approval process to a wider group of syndicates.
Lloyd’s will operate a “file and use” approach to business plans for the top-performing or “light touch” syndicates.
The file and use approach will also be used for other syndicate plans “that are submitted in line with defined key performance indicators [KPIs]”.
Syndicates that do not meet the defined key performance criteria will follow the normal Capital and Planning Group (CPG) process, Lloyd’s said. The CPG process will also be used for the worst-performing or “high touch” syndicates.
Lloyd’s said the file and use approach can only be used where syndicates do not wish to make changes to existing permissions, such as line size dispensations and class of business permissions.
Plans will be reviewed in the first quarter of next year “and may require resubmissions”, Lloyd’s said.
“This allows an opportunity to reconsider the appropriateness of plans, with a better understanding of the post-pandemic market conditions,” Lloyd’s added.
Lloyd’s will reaffirm the defined KPIs for 2021 business and capital plans in June.
“The changes we have made are more reflective and considerate of the current environment and aim to streamline business and capital planning, while ensuring a robust risk-based approach,” Lloyd’s said. “Our new and adapted approach has also been informed by feedback received from both the corporation and the market in relation to last year’s process.”