Lloyd’s unveils market restructuring plan

Following several years of disappointing underwriting experience, Lloyd’s of London today unveiled a restructuring plan which it hopes will "modernize" the market and create a more comparable financial performance environment.Lloyd intends for the market to be operated as a "franchise of businesses" under the directorship of a "franchise board". The Lloyd’s market consists of syndicates made up of both individual "names" and corporate members. In future, market syndicates will be monitored by franchise directors who will report to the board. The main objective is to identify problems within the market at an early stage, and thereby take corrective action, says Lloyd’s CEO Nick Prettejohn.As part of the new business plan, Lloyd’s will switch to a new accounting system which will provide for "up to date" annual reporting. The plan also proposes that the unlimited liability of individual names should cease as from the beginning of next year.