Chief Executive, Wang Wei’s briefing on the recent reopening of Lloyd’s of London to our Chinese partners:-

Lloyd’s of London, the 334-year-old insurance marketplace, welcomed workers back to its halls at the One Lime Street building on September 1, over five months after its doors were forced closed by the Covid-19 pandemic. The first closure of physical trading in the commercial insurance market’s history.

To welcome staff back prior to reopening, an instructional YouTube video revealed measures implemented to ensure they are COVID-19 secure and that the iconic building complies with all UK Government standards and measures.

These measures range from temperature-check thermal cameras; socially distanced queueing and one-way systems; mask wearing in common areas; clear screens on underwriting boxes; virtual meeting booths; and even an App for click and collect take-away catering service at the coffee house. All of this is in addition to conducting monthly deep cleans. Outsiders are also prohibited from entering the building, and events are suspended until January 31, 2021.

At the beginning of the month Lloyd’s underwriting floors commenced their operations at 45% capacity on any one day to ensure social distancing by introducing a ‘class of business’ rota across each day of the working week.

• Monday: Financial and professional lines, cyber and casualty (i.e. third party including FAC reinsurance)
• Tuesday: Property, terrorism, construction (i.e. first party), including FAC reinsurance
• Wednesday: Marine and aviation
• Thursday: All treaty reinsurance, kidnap and ransom, accident and health, political risk, bloodstock, energy, and reinsurance
• Friday: The underwriting room is open for all classes

Traditionally a face-to-face market for brokers and insurers agreeing deals, which were sealed with company stamps and ink signatures, Lloyd’s will not be returning to the same way they worked before.

The closure of its underwriting room has provided the Corporation of Lloyd’s time to rethink how it could operate differently to accommodate a flexible working environment, and one that has adapted through working under lockdown. This has been reinforced by the substantial decrease in employees returning during the first week of re-opening. 400 coming into the building compared with the usual 6,000 pre-Covid.

On September 14, Lloyd’s Chief Executive, John Neal, revealed to the press that Lloyd’s have now decided to remake the underwriting room with the aim of presenting new concepts in partnership with the Lloyd’s Market Association to the market for feedback in the first quarter of 2021.

For their 90-plus syndicate members (of which there are 33 syndicates managed by 29 managing agents on Lloyd’s China platform) who underwrite many of the world’s largest commercial insurance deals, they will continue to use Lloyd’s existing electronic trading platform (PPL). This will form the basis for one of two electronic exchanges Lloyd’s plans to launch next year. By all accounts, remote trading is working well and there has been record usage data for PPL (which provides electronic binding legal interchange agreements).

The continuation of Lloyd’s of London’s planned switch to an enhanced electronic trading functionality, to be expanded to encompass multiple classes, will allow brokers and underwriters to connect, and the Lloyd’s market to continue to offer services and products to its customers, regardless of their circumstances.