Artificial intelligence and machine learning in actuarial and risk
15th May 2025
Sanjiv Sharma
Head of Actuarial and Exposure Management, LMA
The transformative potential of artificial intelligence (AI) and machine learning (ML) continues to capture the imagination of the Lloyd’s market.
The LMA is pleased to share a new report,AI and ML in Actuarial and Risk, which showcases the findings from our latest survey of chief actuaries and chief risk officers from across the market, produced with the support of Barnett Waddingham.
This report is built on insights from 30 respondents, representing approximately 55% of the market stamp capacity, alongside six in-depth interviews. There is a growing sense of optimism in the market, with organisations taking meaningful steps to integrate AI and ML into their operations.
The survey findings reveal a gradual but steady adoption of AI/ML technologies, driven by their ability to enhance decision making, improve operational efficiency and unlock new opportunities across actuarial and risk management. However, challenges such as model transparency, governance frameworks and ethical concerns remain central to discussions. As we embrace these technologies, it is clear that their successful adoption will depend on striking a balance between innovation and risk management.
LMA establishes specialist group for delegated authority claims
29th April 2025
New group formed to manage delegated authority (DA) claims processes and regulatory requirements in the Lloyd’s market London, 29 April 2025: The Lloyd’s Market Association (LMA) has launched the Delegated Authority Claims Management Group (DACMG), in recognition of the need for increased focus on governance and operational matters related to delegated claims management. Technical claims matters concerning delegated risks will be considered by the relevant claims sector groups, with close connection maintained between the DACMG and these groups.
The DACMG is made up of representatives from 10 LMA member firms and is chaired by Carrie Bell, Head of Claims Operations at AEGIS London, and Angus Rogers, Claims DA Transformation Manager at MS Amlin.
The DACMG has been established with three core objectives:
To identify, prioritise and execute solutions in response to changes in the operational environment and regulatory requirements of the delegated claims authority market.
To identify opportunities to innovate and/or optimise any delegated claims authority processes or procedures positively impacting either managing agents or their customers.
To work with the market’s delegated claims authority partners to identify and embed solutions that drive efficiencies and reduce cost, ultimately enhancing their experience with dealing with the Lloyd’s market.
Janine Powell, Claims Director at the Lloyd’s Market Association, said: “In Lloyd’s Q3 2024 Market Message, delegated business was identified as an area that will face closer scrutiny in 2025. In response, the LMA has formed a dedicated market group to manage any incoming changes to the governance and operational environment for DA business.
“The group will work closely with Lloyd’s to review the Delegated Claims Authority (DCA) onboarding and review process, with the ambition of streamlining due diligence and improving consistency across the market. It will also gather and provide market feedback on the Co-Lead Claims Agreement (CLCA) and Cross Market CLCA. The DACMG will serve as a vital feedback loop as the Lloyd’s market continues to work on improving the consistency of the market’s controls in this area.”
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2024, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.
LMA unveils finalists for 2025 Claims Awards, celebrating excellence across the market
28th April 2025
London, 28 April 2025: The Lloyd’s Market Association (LMA) is pleased to announce the finalists for its Claims Awards, following an overwhelming response of over 80 nominations spanning six award categories. The awards recognise outstanding contributions within the Lloyd’s market claims community, as part of the LMA’s broader initiative to spotlight the varied and innovative work being done across the sector and highlight claims as an exciting career path.
A judging panel made up of claims leaders, including Matt Bunting, Lloyd’s, Gabrielle Folliard, AXIS Capital, Barbara Rizzi, Arch Insurance and Stephen Roberts, RiverStone International, reviewed a wide array of submissions that highlighted technical excellence, innovation, personal growth and collaboration.
The awards will culminate in a presentation evening on 15 May 2025 at Plaisterers’ Hall.
Janine Powell, Claims Director at the LMA, commented: “The exceptional standard of nominations speaks volumes about the depth of talent in our market. It was clear from the submissions that individuals and teams across the sector are delivering impactful, forward-thinking work that strengthens the Lloyd’s claims proposition.” Finalists by category:
Claims in Action – Brit – Canopius – MS Amlin
Claims Innovation – Brit – LimeIQ – AXA XL – Straight Through Processing (STP) – Probitas – Claims Plus (Data Enrichment)
Rising Star – Adjusting – Aadil Shara (Markel) – James Duffus (Liberty Specialty Markets) – Amy Corke (Arch) – Ryan Butcher (IQUW) – Ben Harris (Canopius)
Significant Contribution – Steve Hill (AXA XL) – Trevor Self (Beazley) – Charles Glaisher (Faraday) – Steve Flood (Beazley)
Notes to Editors
Media relations contacts
LMA: Carole Porter, Head of Marketing and Communications | +44 020 3307 3922 | Email: carole.porter@lmalloyds.com
About the LMA
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56bn in 2025, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies.
We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy.
LMA adds new Beazley and Talbot representatives to board
9th April 2025
London, 09 April 2025: The Lloyd’s Market Association (LMA) has announced the addition of Bethany Greenwood, CEO of Beazley Furlonge Limited and Beazley’s Group Head of Specialty Risks, and Emma Woolley, Chief Executive Officer of Talbot Underwriting Ltd* to its board.
Since joining Beazley in 2019, Bethany has held a number of senior positions, including Head of Executive Risk and Head of Cyber & Executive Risk. Prior to Beazley, she spent close to two decades at Marsh. Emma joined AIG in 2022 as Global Head of Marine, taking on the role of Chief Executive Officer of Talbot Underwriting in March 2025.
Rob Anarfi and Chris Rash have stepped down from the LMA board.
Sheila Cameron, Chief Executive Officer of the LMA, commented: “I am pleased to welcome both Bethany and Emma to the LMA board. Their collective sector and market knowledge will be of significant value to the LMA board as we continue to maintain the Lloyd’s market’s position at the forefront of global insurance.”
Andrew Brooks, Chairman of the LMA, said: “I would like to extend my thanks to Rob and Chris for their time on the LMA board. Their many contributions have been invaluable.”
Notes to Editors
*The appointment of Emma Woolley as Chief Executive Officer of Talbot Underwriting Ltd is subject to regulatory approval.
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2025, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies.
We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy.
Lloyd’s 2025 Insights Report
8th April 2025
Paul Davenport
Finance & Risk Director, LMA
The Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR) are pleased to present their second annual report, providing analysis and insights following the Lloyd’s 2024 results.
The full insights report, co-authored with ICMR, covers the overall performance of the market and conducts a detailed examination of individual syndicate performance. It explores the factors driving growth and profitability across syndicates of varying sizes and maturity levels. This year, the performance analysis has been expanded to include Reinsurance Property, Casualty and Specialty classes as well as a deeper analysis of expenses for delegated binder business.
As before, the report benchmarks the market’s performance favourably against liquid specialty (re)insurance investments and catastrophe bond indices. Lloyd’s continues to offer an attractive and relatively more stable return on capital over the long term with a low correlation with other asset classes, represented, for example, by the MSCI World Equity Index.
Figure 1: Risk reward profile of annual calendar year returns vs volatility (standard deviation). RISX equity index data from 2007 onwards only.
At an individual syndicate level, almost all syndicates have made an underwriting profit in 2024. Given the extra costs and capital loadings applied to start up syndicates, the analysis shows that 2022/23 was clearly a good time to commence underwriting in Lloyd’s. The 2024 league table of syndicates by pre-tax results highlights the consistent performers over five years, however, pure premium volume is not the primary driver for inclusion in the top 10.
Table 1: Rank of the top 10 most profitable syndicates over the last five financial years, excluding legacy writers.
Over the last three years of a hard market for insurance rates, our analysis suggests that non-aligned syndicates may have been better able to grow than aligned syndicates, illustrating the importance of third-party capital to the vitality of the market.
Figure 2: Underwriting performance versus gross written premium growth for a three-year average, 2022-2024.
The full insights report is available on the ICMR website here.
Lloyd’s 2025 Insights Report highlights strong performance and investor appeal
London, 08 April 2025: Insurance Capital Markets Research (ICMR) and the Lloyd’s Market Association (LMA) have released their 2nd annual report, the Lloyd’s 2025 Insights Report, providing a detailed analysis of Lloyd’s and syndicates’ 31/12/2024 year-end results.
The report reveals that Lloyd’s continues to deliver highly favourable returns to investors, with profits just shy of the previous year’s record, driven by favourable trading conditions and a return to more normal investment valuations. Despite major claims activity in 2024, including two US hurricanes, almost all individual syndicates reported an underwriting profit.
Key findings from the report include:
Lloyd’s reported £55,546m of gross written premium and a pre-tax profit of £9,626m for the 2024 financial year and so continues to offer an attractive return on capital to investors with low correlation compared with other asset classes.
Major claims at 7.8% for 2024, while higher than 2023, remained below the long-term average of closer to 10%.
The expense ratio remained unchanged at 34.4% compared with 2023 and the report explores the influence of distribution channel on acquisition expenses and combined ratio.
The positive impact of performance management at Lloyd’s is evident in the long-term underwriting results since its introduction in 2003.
The RISX equity index, a benchmark for the global specialty (re)insurance sector with underwriting subsidiaries at Lloyd’s, shows accelerating investor expectations of positive returns from underwriting.
The report offers a deeper understanding of the drivers and trends underlying Lloyd’s performance for managing and members’ agencies, brokers and investors. It highlights that Lloyd’s is still seen as an attractive place to invest, with increasing capital markets’ confidence.
Paul Davenport, Finance & Risk Director at the LMA, said: “At an individual syndicate level, almost all syndicates have made an underwriting profit in 2024, despite the market being tested by some major claims events which were absent in 2023. While closer to average, 2024 major claims still fell below long-term levels. Given the extra costs and capital loadings applied to start-up syndicates, the analysis shows that the post-COVID window was clearly a good time to commence underwriting in Lloyd’s.”
Markus Gesmann, Co-Founder of ICMR, added: “The Lloyd’s market had another profitable year, outperforming peers and many other asset classes, yet a key issue remains of capital deployment. To improve efficiency and leverage strong returns, innovative models like ‘barbell’ strategies, initially deploying liquid funds in the sector before scaling up Funds at Lloyd’s when needed, can be used to satisfy investors’ and asset managers’ deployment requirements.”
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2025, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies.
We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy.
About ICMR
Insurance Capital Markets Research (ICMR) is a quantitative research firm dedicated to delivering innovative solutions for the complex challenges facing the global specialty (re)insurance industry. Our expertise lies in transforming data into actionable insights.
We collate and manage industry performance data sets and specialise in providing in-depth analysis and prospective modelling of Lloyd’s syndicate portfolios.
Our portfolio valuation services are used by fund investors to track monthly earned returns on their portfolios of Lloyd’s participations and our real-time price to book valuation models give insight into enterprise value creation.
Our founders were Lloyd’s former heads of research and analysis who also worked together in the capital markets and insurance-linked securities. ICMR was established in early 2020 and launched the RISX equity index in 2021. We are an associate member of the Lloyd’s Market Association.
Over one-third of London market firms now actively using AI
4th April 2025
But barriers remain significant, with data quality and availability and uncertain return on investment cited as the primary barriers to adoption
London, 24 April 2025: The LMA has today hosted a seminar on the use of AI within the London specialty market. The seminar referenced results from a recent survey completed by 81 firms in the London market, including 45 Lloyd’s managing agents.
The survey results highlighted that:
14% of respondents have deployed or experimented with agentic AI or generative AI in underwriting processes. However, 65% of respondents have not yet done so in underwriting or claims processes and 12% say they have no plans to utilise the capability.
AI usage is at an early adopter stage for most respondents, with 47% experimenting with AI tools, but without wide adoption. However, 40% say that AI tools are actively used in some areas or even widely integrated into workflows.
Uses of AI centre around data extraction The primary use case for a digital workforce within underwriting and/or claims processes is currently seen to be for data extraction from unstructured documents – used by almost three-quarters (74%) of respondents.
But over half of respondents (54%) use AI for submission preparation, while one-third believe AI has a significant use case for claims triage and automation of simple tasks and policy review/endorsement management. Only 14% saw fraud detection as a primary use case for a digital workforce.
Barriers remain significant Respondents highlighted some of the barriers to adoption of AI within underwriting and claims operations. Data quality and availability issues were cited by just under half (49%) of respondents, integration with existing systems was a problem for 46% and cost coupled with the uncertain return on investment was an issue for 48%.*
Rob Myers, Consultant at the Lloyd’s Market Association, commented: “We are hosting our AI event today to inform our members and the wider market on the opportunity in front of them and to facilitate the market stepping forward and building out its AI expertise and capabilities. Although it is encouraging to see that one-third of companies are already deploying agentic AI or generative AI, it is surprising to note that half of survey respondents have not yet tested its capabilities. We have a chance to consider how the complexities of the London specialty market can be a magnet, rather than a barrier, for deployment of ‘intelligence as a service’ that agentic AI solutions offer. AI has, as our survey highlights, a significant use case within data extraction, submission preparation and claims triage – all of these are significant time requirements for insurers and brokers today.”
Notes to Editors
*In the LMA’s report, The Growth of Enhanced Underwriting in the Lloyd’s Market: The New Normal?, published in November 2024, barriers to adopting algorithmic underwriting were identified by survey respondents as follows: loss of control of underwriting decisions (14%), algorithmic bias (12%) and regulatory concerns (10%).
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2025, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies.
We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy.
LMA calls for collective market approach to cyber exposure management
1st April 2025
Report highlights the need for adoption of standardised ‘primary’ cyber characteristics within syndicates London, 01 April 2025: The Lloyd’s Market Association (LMA) has today released Practical Management of Cyber Exposures and Aggregations, a best practice document on the management of cyber risks.
The report:
Explores examples specifically related to cyber risk. It evaluates the current landscape of modelling methodologies available to syndicates, and integrates current market knowledge with an assessment of the unique challenges of this dynamic and complex peril.
Examines the challenges of collecting and standardising data, the benefits and drawbacks of various modelling methodologies and the need for upskilling within exposure management teams
Calls for cross-market collaboration to invest in talent, leverage emerging technologies and adopt a standard approach to exposure management in the cyber market.
Paul Davenport, Finance & Risk Director of the Lloyd’s Market Association, said: “Cyber risk has emerged as one of the most dynamic and challenging perils in today’s risk landscape. It is a human-caused and often maliciously motivated threat that can transcend geographical and sectoral boundaries, creating unique challenges for insurers and reinsurers. Unlike ‘traditional’ perils, cyber events are not easily constrained by time, space or rational progression, complicating efforts to assess exposure, manage accumulations and define events.”
“While the management of cyber risk accumulations is a relatively new discipline, we are well equipped to face the challenges discussed in this report, providing that we work to ensure complete, accurate and timely data collection and storage – a crucial factor. Standardised ‘primary’ cyber characteristics that are routinely disclosed and captured will go a long way towards ensuring that cyber exposure management practices become embedded into syndicates’ exposure monitoring.”
Sanjiv Sharma, Head of Actuarial & Exposure Management at the LMA, said: “Managing cyber risk is a significant and evolving challenge for the modern insurance industry. The risk landscape is particularly dynamic and globally interconnected, so the need for a coordinated and unified approach to exposure management in this area is of the utmost importance. By issuing this best practice document, we are looking to equip the market with a cyber-specific corpus of information and recommendations.”
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2024, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.
Practical management of cyber exposures and aggregations
31st March 2025
Sanjiv Sharma, Head of Actuarial & Exposure Management, Lloyd’s Market Association.
Cyber risk has emerged as one of the most dynamic and challenging perils in today’s risk landscape. It is a human-caused and often maliciously motivated threat that can transcend geographical and sectoral boundaries, creating unique challenges for insurers and reinsurers.
Unlike ‘traditional’ perils, cyber events are not easily constrained by time, space or rational progression, complicating efforts to assess exposure, manage accumulations and define events. Rapid evolution of technology, diverse threat actors and growing interconnectivity exacerbate this complexity, demanding a multidisciplinary approach to risk quantification and management.
This report highlights the key issues in managing cyber risk today, including data quality and governance. It discusses the evolution of exposure management frameworks and the role of cyber aggregation frameworks and models in creating a more structured understanding of accumulation potential.
This report also explores the challenges of collecting and standardising data, the benefits and drawbacks of various modelling methodologies and the need for upskilling within exposure management teams.
Access the full report today and enhance your understanding of cyber risk.
London market associations unite to launch misconduct training programme following FCA request
25th March 2025
London, 25 March 2025: Following the publication of the Financial Conduct Authority (FCA)’s 2024 report on non-financial misconduct (NFM) in the wholesale specialty insurance market, the FCA requested work be undertaken by trade associations to provide their respective memberships with appropriate support and guidance on non-financial misconduct. Given the uniqueness of the market, the Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and London & International Insurance Brokers’ Association (LIIBA) agreed on a collaborative approach as their messages are aligned on this important topic.
As a result, the associations today launched a new joint training programme for the specialty insurance market – the first of its kind and the first ever joint training programme shared across brokers and underwriters. The programme, delivered in association with compliance consultancy firm Padda Consulting, consists of a series of six workshops tailored for members of the LMA, IUA and LIIBA, with an additional session for Independent Non-Executive Directors (INEDs) and Non-Executive Directors (NEDs) of LMA, IUA and LIIBA member firms.
Sheila Cameron, Chief Executive of the LMA, said: “The NFM workshops are designed to equip key stakeholders across the insurance sector with the knowledge, tools and strategies needed to enhance workplace culture, governance and compliance with FCA expectations. Given the importance of multi-functional oversight in managing NFM, these workshops are tailored for professionals responsible for HR, compliance, risk and executive leadership within member firms of the LMA, IUA and LIIBA.” Chris Croft, Chief Executive of LIIBA, commented: “The session for INEDs, NEDs and board directors will focus on board-level responsibilities, ensuring directors understand their role in challenging management on NFM oversight, reviewing governance frameworks and assessing whistleblower protections. It will provide strategic insights into whistleblowing responsibilities, cultural risk oversight and regulatory accountability under FCA and Lloyd’s governance principles.”
Dave Matcham, Chief Executive of the IUA, added: “The main group of sessions are designed for HR professionals, responsible for overseeing employee conduct policies, workplace culture and grievance handling; and for compliance officers, ensuring that FCA/PRA requirements and whistleblowing regulations are met. Finally, they are also appropriate for risk managers, who must incorporate NFM-related risks into the firm’s wider risk frameworks. All of these sessions have the potential to help drive significant improvements in culture and behaviour across our industry, as the FCA intended.”
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd’s managing agencies, with a total market stamp capacity of approximately £56.2bn in 2025, and all Lloyd’s members’ agents, are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.
About the International Underwriting Association (IUA)
The International Underwriting Association of London (IUA) is the representative body for companies in London providing international and wholesale insurance and reinsurance coverage. Its mission statement is to secure an optimal trading environment for London insurance companies. The IUA’s London Company Market Statistics Report shows that overall premium income for the company market in 2023 was £48.432bn. Gross premium written in London totalled £42.995bn while a further £5.437bn was identified as written in other locations but overseen and managed by London operations. For more information visit: www.iua.co.uk.
About the London & International Insurance Brokers’ Association (LIIBA)
London & International Insurance Brokers’ Association (LIIBA) is the trade association for Lloyd’s insurance brokers active in the complex commercial market centred in London.
LIIBA represents its members interests to governments and regulators around the world. It also provides the voice of the customer in the discussions around common processing in London.
LIIBA members collectively bring $160bn in gross written premium to London each year. The market generates £50bn in contribution to UK GDP – one third of the total of the City of London as a whole.
About Padda Consulting
Padda Consulting is a compliance consultancy dedicated to supporting the insurance industry in achieving and maintaining regulatory compliance. Padda Consulting works with clients of all sizes, including brokers, insurers, Lloyd’s of London syndicates, MGAs and coverholders. With deep industry expertise, Padda Consulting provides tailored solutions to help firms navigate complex regulatory requirements with confidence.
