Lloyd’s completes Covid-19 24 hour stress testMarch 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 firstname.lastname@example.org.”
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.
- May 27
As economies re-open in Asia optimism is growing among accident and health (A&H) underwriters.
- May 15
Lloyd's players could be on the hook for US$4.3bn of claims alone.
- May 8
A search has begun for a successor for the key APAC role.
- April 21
Nicholas Tey, international financial lines manager for Asia Pacific, sees "strong opportunities."