The board of the Lloyd’s Market Association has sanctioned marine hull and international casualty blinders as the two classes that will form the modernised syndication pilot, as part of the Future of Lloyd’s strategy.

Market consultation on leader and follower standards within these two classes will commence in the coming weeks, led by the LMA. The association hopes the standards will improve performance, reduce duplication and ensure oversight is proportionate across all classes of business.

Chief executive of the Lloyd’s Market Association, Sheila Cameron said: “We are pleased to have moved forward to the next stage of the modernised syndication initiative by going through a robust analysis of the most appropriate classes for the pilot.

“We look forward to continuing to work closely with the market on the creation of the leader and follower standards in the marine hull and international casualty binders classes,” she added.

Lloyd’s performance management director, Jon Hancock said: “The pilot will enable the market to test the principle of modern risk syndication and develop appropriate leader and follower standards, one of the key foundations of the Future at Lloyd’s.

“Once agreed, the revised lead-follow model will deliver significant benefits including improved standards, cost reductions, more proportionate governance and oversight, and smoother implementation of the Future at Lloyd’s solutions,” he added. “This distinction between leaders and followers should make it easier for brokers to place business at Lloyd’s, and should drive good quality, sustainable underwriting performance and growth.”

The syndication pilot will commence in late Q1 or early Q2 2020.

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