Lazarus, Kevin --- "Lloyd’s: The Development of Performance Management" [2012] ELECD 172; in Burling, Julian; Lazarus, Kevin (eds), "Research Handbook on International Insurance Law and Regulation" (Edward Elgar Publishing, 2012)

Book Title: Research Handbook on International Insurance Law and Regulation

Editor(s): Burling, Julian; Lazarus, Kevin

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849807883

Section: Chapter 18

Section Title: Lloyd’s: The Development of Performance Management

Author(s): Lazarus, Kevin

Number of pages: 25

Extract:

18 Lloyd's: the development of performance
management
Kevin Lazarus1



1. INTRODUCTION

Lloyd's Act 19822 marks, in many respects, the start of the modern history of Lloyd's. As
we shall see, it is this Act which put in place the governance structure that still underpins
the Society. It provided a significant break with the traditional way in which the market
had been run and it marked the start of an almost continuous process of change and
modernisation culminating in the Chairman's Strategy Group Report in 2002 and the
implementation of the present performance management framework.
The story of Lloyd's during this period from 1982 onwards is a fascinating one. The
1980s and 1990s were a famously turbulent period for the insurance industry as a whole,
largely as a result of asbestos and other liability losses from the US together with losses
from various natural and man-made catastrophes. The Lloyd's market did not escape its
share of the claims and it was certainly a difficult time for Lloyd's underwriters. While the
financial tale of Lloyd's during the period is important,3 for those interested in regulatory
matters, the development of Lloyd's framework of self-regulation over that same time-
frame should be a matter of equal interest. The present chapter aims to do two things.
First, it gives a short history of Lloyd's, not only because it provides relevant context to
the rest of the chapter but also because it is ...