Lloyd’s Index

Lloyd’s of London still aims to attract more alternative capital providers and products into the market by the end of 2018, as its interim milestones remain unchanged, and will revisit the Index featuring loss ratios and data on the insurance market’s performance, at the end of this year, Inga Beale said today.

The Lloyd’s of London insurance and reinsurance market has put its plans to launch an index for diversified insurance risks, featuring loss ratios and data on the insurance market’s performance, on hold as understanding the impact of Brexit takes priority.

With the expected mid-2016 launch of the Lloyd’s index from specialist insurance and reinsurance marketplace Lloyd’s of London being delayed, Optex, a risk transfer provider to the re/insurance and capital markets’, has highlighted the potential for market participants to utilise its own variant, Lloyd’s Lite.

Alternative capital and insurance-linked securities (ILS) are set to continue to disrupt the insurance and reinsurance market, according to Chairman of Lloyd’s of London John Nelson, reshaping the industry and continuing to pressure catastrophe lines of business.

Another year passes, another annual report from the Lloyd’s of London insurance and reinsurance market is released and we witness another increase in the positive tone in which the market describes the opportunity to embrace ILS and alternative capital.

The Lloyd’s of London insurance and reinsurance market suffered a drop in profitability in 2015 as the impacts of lower pricing on re/insurance underwritten, higher competition and lower investment returns all combined to reduce profits.

What a difference two years can make. In September 2013 John Nelson, Chairman of the Lloyd’s of London insurance and reinsurance market, had warned that mismanagement of third-party capital in re/insurance could lead to “systemic” issues in the market.

Lloyd’s of London, the oldest and only true insurance and reinsurance marketplace in the world, is planning to launch the Lloyd’s Index, an index for diversified insurance risks, featuring loss ratios and data on insurance market performance.