SIRC 2026: ‘A softer market doesn’t mean a less risky world’: Lloyd’s APMEA CEO

November 5 2026 by

Plentiful capital is pushing down insurance prices across Asia Pacific, the Middle East and Africa (APMEA), but that does not mean the world is getting safer, according to Emma Loynes, CEO of Lloyd’s APMEA. 

“A softer market doesn’t mean a less risky world,” she said.  

“Plentiful capital is putting pressure on prices, but conditions differ by country, class, loss experience and individual risk.” 

Loynes cautioned that plentiful capital and pressure on insurance pricing do not necessarily reflect a reduction in underlying risks —  and changes in risk exposures could increase the severity of claims even when insurance premiums decline. 

“Prices move cyclically while risks change structurally. Physical, digital, financial and trade dependencies can transmit losses; higher replacement costs and longer interruptions can make claims larger even when premiums fall,” she added.  

Loynes also emphasised the importance of appropriate coverage, limits and claims services as structured and portfolio solutions change market access. 

“Structured and portfolio solutions are changing access, but buyers still need suitable cover, adequate limits, dependable capacity and claims service. Selection, pricing and terms must remain grounded in exposure,” she added.  

Loynes said insurers needed expertise and tested structures to address emerging risks rather than concentrating solely on competition for existing business. 

“Capital alone isn’t capability. We need knowledge, partnerships and tested structures to tackle newer risks, rather than just compete harder for familiar business.” Emma Loynes, Lloyd’s

“Not every exposure is insurable, and innovation must support underwriting performance. We have to balance ambition with discipline.” 

Loynes said she expected pressure in some areas into 2027, but does not anticipate uniform softening across the region. 

Regional initiatives

Lloyd’s is seeking to improve access to specialist insurance across APMEA through new market participation arrangements, regional consortia and operational improvements, as abundant capital puts pressure on insurance pricing. 

Loynes said her regional priorities centred on improving access to expertise, adding value and removing barriers to working with Lloyd’s. 

“For me, it comes back to relevance, value and access: bringing the right expertise to our markets, adding value and removing barriers to working with Lloyd’s,” she said. 

 “APMEA is diverse, so we need to combine local knowledge with global expertise rather than take one approach everywhere.” 

Loynes said Lloyd’s was building on strong foundations of growth and profitability, with a focus on disciplined underwriting, improved service and more effective use of capital. 

“Our operational transformation work is still under way, focusing on faster access, lower costs and less reporting friction,” she said. “We also want existing participants to grow sustainably and high-quality new entrants to bring additional expertise.” 

In China, Lloyd’s introduced a participation model in 2026 that pairs additional syndicate capacity with local underwriting leadership, while its new Gujarat International Finance Tec-City (Gift City) licence provides another route into India. 

“Within the market, consortia in Singapore, Australia and Dubai bring expertise and capacity together. Singapore examples include renewable energy, political violence and terrorism, and contingency; in Japan, Munich Re Specialty’s parametric earthquake product, launched in July, complements existing protection,” Loynes said.  

Lloyd’s also held meet the market events in Hong Kong, Taipei and Tokyo in 2026 to help build relationships between brokers and underwriters. 

The market’s Asia Market Innovation Hub proof of concept and operational transformation work are intended to address service delivery, while its participation in the Global Asia Insurance Partnership extends collaboration across sectors to address protection gaps. 

“Together, these initiatives are about complementing domestic markets and making specialist protection more accessible, not simply adding volume.” Emma Loynes, Lloyd’s

Over the next three to five years, Loynes wants Lloyd’s to be recognised for its contribution to talent development, innovation and the protection it makes available. 

“I’d like clients to consider us earlier when they face a difficult risk, and for expertise, ideas and capital from the APMEA region to play a greater part in the wider Lloyd’s market,” she added.  

AI adoption, safeguards

Lloyd’s market participants are exploring applications of artificial intelligence across underwriting, distribution and claims, although Loynes said adoption was at different stages. 

“There isn’t one AI deployment across Lloyd’s; market participants are at different stages,” she said. “The opportunities include organising underwriting submissions, improving information exchange in distribution, and supporting claims document review and triage.” 

In Asia, Lloyd’s is drawing on the Lloyd’s Lab innovation blueprint through its Market Innovation Hub proof of concept. 

“This concept pairs alumni with Singapore service companies to test solutions to unstructured data and manual reconciliation. We need evidence of what works before bringing solutions into routine use,” Loynes added.  

She said AI adoption required standardised data, governance and accountability, along with safeguards covering security, privacy, errors and bias. 

“AI depends on sound foundations: consistent, standardised data, governance and accountability. Security, privacy, explainable outputs, testing for errors and bias, and monitoring of models and third-party dependencies matter too,” Loynes said.  

She emphasised that technology should support rather than replace specialist decision-making. 

“It should augment human judgement, not replace specialist expertise or responsibility for underwriting and claims decisions,” Loynes added.  

She also said insurers needed to assess how clients’ adoption of AI could affect cyber, liability and systemic exposures across insurance classes. 

Talent development

Lloyd’s is also seeking to strengthen insurance expertise alongside skills in data, engineering, climate and technology. 

“We need deep insurance expertise alongside skills in data, engineering, climate and technology,” Loynes said. “It’s about bringing those perspectives together with underwriting judgement, not expecting everyone to know everything.” 

Loynes highlighted a young talent forum created after she joined in 2023, which now has 400 members from across the insurance sector. 

“There wasn’t a pan-Singapore forum for that community; it now has 400 members from across the insurance sector, with Singapore Reinsurance Association and Singapore College of Insurance collaborations,” she added.  

Lloyd’s 2026 Asia Broker Academy brought together 36 brokers from eight markets for learning, mentoring and challenges covering AI liability, cyber, parametrics and the energy transition. 

Wider academy programmes also serve underwriters and risk managers, complementing market participants’ own recruitment and development efforts. 

Loynes said strengthening connections between technical skills and insurance careers was an important next step. 

“A future-ready workforce isn’t just about headcount; it’s about the expertise and value we bring to our markets,” she added.  

Data centres, AI infrastructure

Lloyd’s is focusing on the insurance requirements of data centres, AI infrastructure and semiconductor facilities, including risks arising during construction and after operations begin. 

“The opportunity starts before a project begins to operate. Bringing specialist underwriters in early helps address construction, equipment, cargo and delayed start-up, followed by operational property, business interruption, liability and cyber,” Loynes said. 

She said understanding the dependencies associated with these facilities was particularly important. 

“Data centres rely on power, cooling, specialist equipment and connectivity,” Loynes added. “Scarce replacement parts can prolong interruption, and the effects can reach customers far beyond the site. Semiconductor facilities raise similar questions about concentration and replacement times.” 

Shared cloud services and subsea cables also create risks that can affect multiple industries and countries. 

“We need to understand those accumulated exposures and how the connected financial consequences are covered,” Loynes added.  

She said Lloyd’s could combine specialist underwriting, engineering, supply-chain knowledge and modelling with capital to support these sectors. 

“Lloyd’s can bring engineering, supply-chain knowledge, modelling and specialist underwriting together with capital, sharing exposure rather than concentrating it on one balance sheet,” she added.  

Loynes stressed the importance of reliable information and appropriate pricing where historical loss data is limited. 

“Good data, scenarios and clear coverage, aggregation and pricing are essential, especially where loss history is limited,” she added. “The aim is to enable investment responsibly, not simply deploy more capacity.” 

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