In an article published by Carrier Management, contributing author Greg Gaydos, a business development executive from Zywave, suggested that doing business with Lloyd’s is an expensive proposition.

That’s one reason that Lloyd’s market is shrinking relative to the U.S. E&S market, he states in his article, “U.S. E&S Sector Is Booming But Is it Too Much Business to Handle?”

At a recent investor conference, the CEO of a U.S. specialty lines insurer separately gave his take on the dynamics of the Lloyd’s and U.S. E&S markets.

Asked specifically if the U.S. was structurally growing and taking on more complex risks that once went to the London market during the UBS 2024 Financial Services Conference last month, W. Robert Berkley Jr., president and CEO of W.R Berkley Corporation, said “London, generally speaking, ebbs and flows. But overall, directionally, its role within the marketplace is less significant today than it was yesterday.”

Berkley continued, “More likely than not, it’s going to continue to have a market position that will remain important, but gradually less and less important over the coming decades.”

Giving his assessment of the reasons, he said, “I think their value proposition is challenged. Global licensing continues to be a plus that they have, but since Brexit, that competitive advantage is diminished, and I think others have come up with solutions.”

“And I think as far as the subscription market in a digital age, you don’t need people all in one room in order to build capacity,” Berkley said.

Read more conference highlights in the article, “Executives Deliver Divergent Views on Sustainability of Workers Comp Profits“