LMA and Aon’s report, Capital Insights: Understanding Investor Experiences at Lloyd’s, concludes that the advantages of Lloyd’s as an investment destination remain strong. However, there are opportunities to simplify access routes and terminology in order to enhance investors’ experience and the predictability of set-up and running costs.
The report includes key findings reflecting the issues most commonly raised by capital providers.
• The Lloyd’s story and the variety of investment routes available need clearer communication in language suitable for its wide range of investors.
• Some complex regulatory and onboarding procedures could be simplified.
• Investors must have timely access to relevant performance monitoring data.
• Clearer articulation of early capital distribution points is needed for investors.
Lloyd’s already has initiatives underway dedicated to resolving some of these hurdles. We look forward to collaborating with Lloyd’s, managing agents and members’ agents to help expedite these and other initiatives.
Paul Davenport, Finance & Risk Director, Lloyd’s Market Association, commented: “Our conversations with capital providers highlighted their positive experience of working with members of the Lloyd’s executive team, who are willing to take a commercial and pragmatic approach to facilitate what investors want to achieve. While this is encouraging, there remains work to be done to enhance underlying processes for getting things done in the market.
“Many capital providers also noted their positive experience of working with the members’ agents, especially for administrative support in terms of their initial investment. Again, these positive observations were often tempered with calls for improvement in processes.”
Joanna Parsons, Strategic Growth Leader, Capital Advisory UK for Aon, said: “This research tells us clearly that there is appetite from new capital to enter the Lloyd’s market.
“The current favourable market conditions are a clear short-term driver for capital interest and deployment. Hence a key focus of all the market players should be about ensuring the longer-term commitment and participation of a diverse variety of capital providers, even when underwriting conditions are not quite as attractive as they are today.”
“In summary, we encourage Lloyd’s, the managing agents and members’ agents to each play their part in addressing the key priorities highlighted in this report. All stakeholders must collaborate to demonstrate to investors that a cross-cycle commitment is worthwhile, not just from the all-important return on capital, but also as regards the ease of doing business and a 21st century approach to process, data analysis and regulation.”
|
