Lloyd’s of London will launch its own insurance based index in summer 2016.

The famed specialist and reinsurance market touts the product as the first of its kind for diversified risk. It is designed to show loss ratios and focus on insurance performance.

Who is the target market? That would be managing agents, brokers and other insurers, plus entities that provide index-related products to the broader capital markets.

Lloyd’s Chairman John Nelson said that the index matters as part of its overall business strategy.

“Our continued success is dependent on being able to develop the tools that the market needs and also reflect the environment it is operating in,” Nelson said in prepared remarks.

He added that the index should appeal to both Lloyd’s and non-Lloyd’s members, and help them keep pace with industry changes and new sources of capital.

Expectations are that the new Lloyd’s index will show loss ratios – premiums versus claims – for the Lloyd’s market on an aggregated basis, and it will focus just on insurance performance. The index will be published quarterly, and subscribers will be able to view the data on a whole market basis.

Lloyd’s wants feedback, too. Plans call for seeking input on the index, plus discussions of appropriate governance measures with UK regulators.

As well, Lloyd’s said it expects more indices defined by class of business to be available in the months ahead.

Source: Lloyd’s of London

Topics Excess Surplus London Lloyd's