Lloyd’s completes Covid-19 24 hour stress test

March 16 2020 by Andrew Tjaardstra

Lloyd’s is ramping up of business continuity preparations and reassurance for the market, employees and customers in the event of an escalation of contingency measures due to Covid-19.

Lloyd’s tested the resilience of the market on March 13 by closing the underwriting room at 1 Lime Street in London for 24 hours in order to test alternative trading protocols.

The measures announced include: Lloyd’s business continuity team has assessed the Lloyd’s market’s readiness to continue trading if the underwriting room needs to be closed at any point.

Lloyd’s closed the underwriting room in London and invoke its emergency trading protocol.

This 24-hour exercise will provide valuable information on the real-life effectiveness of the protocol. Relevant regulators have been informed of these plans.

Additionally, Lloyd’s took the opportunity to deep clean the underwriting room and all public areas in the Lloyd’s building.

Lloyd’s said: “The Lloyd’s market is committed to being there when our policyholders need us the most. That means paying all valid claims as quickly as possible. In addition, Lloyd’s has set up a dedicated contact point to provide our policyholders with assistance and to help them find the right person to confirm cover or process a claim – this is available at coronavirus@lloyds.com.”

Meanwhile, the Lloyd’s Market Association (LMA) has introduced a clause (LMA5392) which will be triggered if access to Lloyd’s is prohibited and the emergency trading protocol fails for more than one day during the seven business days prior to a scheduled renewal. Under the clause, the (re)insurance contract will automatically be extended for 14 days from its expiration.

Meanwhile Lloyd’s Singapore operation in Capita Green is closer to returning to business as usual.

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