Lloyd’s member association calls for opposition to reforms

The “widespread support” Lloyd’s claims for its market modernization plans does not include the largest association representing individual members, or “names”.The Association of Lloyd’s Members (ALM) this week advised its members through a letter to vote against Lloyd’s proposals to reform the market. This follows similar responses from other “names” groups. In the letter, ALM chair Michael Deeny called the reforms a “blank cheque”, and says that corporate members of the market have swayed the board to “believe in a Lloyd’s without names”. “It is vital to record the largest possible number of votes against the resolution,” writes Deeny, although it is unlikely that the names’ opposition will stop the reforms from being passed at a September 12 “extraordinary” meeting. Corporate capital has enough voting power to make the reforms reality.Although the ALM agrees with some of the proposals, including the formation of “franchises” under Lloyd’s, it is fearful that reforms could lead to a rewriting of the “Lloyd’s Act” and the further diminishing power of individual members. Specifically there is concern that the “one member, one vote” system will be altered in favor of corporate members.The association also opposes the ban on future admission of unlimited liability names, with Deeny noting that former names who stopped writing during the soft market may now want to re-enter the market.