Lloyd’s members uphold Treasury reforms

by Gill Montia

Story link: Lloyd’s members uphold Treasury reforms

Members of Lloyd’s of London have voted in favour of Treasury amendments to the Lloyd’s Act 1982 via a Legislative Reform Order.

Yesterday’s extraordinary general meeting was attended by 51.77% of Lloyd’s members, 99.14% of whom voted in favour of the proposals, which are aimed at reforming governance and improving access to the global market.

Henceforth, managing agents will be able to deal with any intermediary and communicate directly with policyholders.

According to the Treasury, removing the monopoly of Lloyd’s brokers’ (who have had exclusive access to the market) could save up to £200 million a year, given that using a Lloyd’s broker adds 5% to the cost of a contract.

The amendments also address governance and have removed the need for the Governor of the Bank of England to approve new Lloyd’s members, while also making it possible for Lord Levene to serve for an unprecedented third term as chairman.