However, climate change brings more unpredictable and faster-developing storms each year

London, 15 June 2026: The Lloyd’s Market Association (LMA) hosted a storm season event led by McKenzie Intelligence Services (MIS) last week to mark the start of the official hurricane season for North America in 2026.

The LMA briefing, with presentations from meteorologist Tomasz Schafernaker and McKenzie Intelligence Services, highlighted that 2026 has an unusually high chance of seeing lower than normal hurricane activity.

The National Oceanic and Atmospheric Administration (NOAA), a US government body, predicts the outlook at 55% probability of below-normal activity with just a 10% chance of a higher-than-normal season.

This is a rare prediction. Since 1995, there have been 22 hurricane seasons with above-normal activity, including ten “hyper-active” seasons, showing how unusual this outlook is.

The NOAA’s expectation for this year is as follows:

• 8-14 named storms
• 3-7 hurricanes
• 1-3 major hurricanes (category 3 excess 111mph – category 5 157mph sustained)

One of the keys to likely activity is warm sea surface temperatures (SST). For example, in 2020, the most active year on record, there were 30 named storms, 13 hurricanes and six major hurricanes – all driven by very warm sea surface temperatures.

However, while SST in Atlantic are currently very warm, the developing El Nino conditions are likely to counteract this and point to this season being less active. Some uncertainty remains in the predictions, largely influenced by the difficulty of predicting the El Nino effect. With high sea surface temperatures, El Nino needs to be strong to counteract the effect, although it is showing signs of strengthening.

NOAA considers all available prediction models when publishing its assessment, including the published 2026 seasonal hurricane forecasting by Colorado State University (CSU).

We can’t be complacent

Janine Powell, Claims Director, Lloyd’s Market Association, commented: “It only takes one major hurricane to make landfall have devastating effects. Even a below-normal season can produce one life-changing storm, causing billions in economic damage and upending communities and livelihoods. Think back to 1992’s Hurricane Andrew. This enormous storm occurred in a season predicted to be below normal and Andrew was the most damaging storm to hit the US in decades.”

The impact of climate change

“The pattern that has emerged in more recent years is that of storms forming later and then developing into major hurricanes more quickly. This change of pace means communities have less time to prepare or evacuate and the storms cause greater devastation when they hit. For example, Hurricane Melissa in 2025 rapidly intensified to a devasting category 5 storm in just 39 hours, with catastrophic consequences for Jamaica and preliminary estimates putting the economic loss of the damage at US$6-7bn (GBP4.5-5.2bn).”

Better data is making extreme weather forecasting more accurate

Forecasting storms is difficult but advancements in meteorological models like Google DeepMind’s WeatherNext 2 are now making long-range forecasting more accurate. These models help give people more time to prepare for major storms by combining data streams in a new way, for example, bringing together wind data, sea temperature data and high-altitude weather patterns, to create real understanding of how these interact to create weather patterns.

Janine Powell added: “Insurers can (and many do) use the wealth of data they have from past events to create actionable insights to help educate people to take steps to keep themselves, homes and businesses as safe as possible. As a market, we have prepared as best we can to respond to our (re)insureds in the face of significant weather pattern changes. Over the last few years, we’ve invested in technology solutions to speed up our response to claims, helping us put money in the hands of customers when they need it the most.”

The nature and degree of damage resulting from natural catastrophes like hurricanes and wildfires can increasingly be reliably mapped by technology solutions like McKenzie Intelligence Services’ Global Events Observer (GEO) product. When these are overlaid with risk level data and augmented with ground source intelligence, it provides a reasonably accurate assessment of the damage zones.

Tomasz Schafernaker, Meteorologist and BBC Weather Presenter, commented: “Predicting hurricane activity in any season is always a challenge. Even during a quiet season, there is always the risk of a powerful hurricane, particularly towards the end of the season and closer to land. While the Atlantic may see a quieter season, the ongoing El Niño is already contributing to a higher-than-normal tropical cyclone risk along the Pacific coast of North and Central America in 2026.”

ENDS

Notes to Editors

The above is provided for information purposes only and does not constitute advice, recommendations or predictions; individuals should obtain their own independent advice before taking any action.

Media relations contacts

LMA:
Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com

Omnia Partners:
Victoria Sisson, Director | +44 794 129 4872 | Email: victoria.sisson@weareomniapartners.com

Notes

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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 guidance to help managing agents embed controls, manage risk and scale AI adoption responsibly

London, 23 April 2026: : The Lloyd’s Market Association (LMA), in collaboration with Barnett Waddingham, has today launched a new AI Adoption Toolkit to support managing agents in developing and strengthening governance frameworks for artificial intelligence (AI) across the Lloyd’s market.

The launch follows recent LMA research highlighting accelerated growth in AI adoption across the market and an increasing focus on governance and risk management, with the guidance reflecting a growing need across the market for more structured approaches to AI governance as adoption accelerates.

The toolkit provides practical, principles-based guidance to help firms move from early-stage experimentation towards more structured, governance-led adoption, as AI use cases continue to expand.

Developed in response to increasing AI adoption and evolving risk considerations, the toolkit is designed to support firms at different stages of their AI journey, offering a flexible framework that can be adapted to varying organisational structures, risk appetites and regulatory environments.

A practical framework for responsible AI adoption

The AI Adoption Toolkit is built around five core principles:

• Governance and accountability
• Risk tiering
• Data protection, security and intellectual property
• Training and awareness
• Pragmatic adoption

Together, these principles provide a structured approach to managing AI risk while enabling firms to realise the benefits of emerging technologies.

Embedding controls early and scaling AI adoption responsibly

The guidance encourages firms to begin with lower-risk use cases, embed appropriate controls from the outset and scale adoption gradually as governance frameworks mature.

It also highlights the importance of maintaining human oversight, aligning internal policies with evolving regulatory expectations, and ensuring that AI deployment is supported by effective training and clear accountability structures.

Supporting the market as AI adoption evolves

The launch of the toolkit reflects the LMA’s continued focus on supporting the Lloyd’s market in navigating the opportunities and challenges presented by AI.

As firms move beyond experimentation and towards more widespread use, the need for practical, governance-led guidance is becoming increasingly important.

Sanjiv Sharma, Head of Actuarial and Exposure Management at the Lloyd’s Market Association, said: “As AI adoption continues to develop across the Lloyd’s market, the focus is increasingly shifting towards how it is implemented and governed in practice.

The toolkit is designed to provide practical guidance to help firms embed appropriate controls early, manage risk effectively and scale adoption in a structured way.”

Wan Heah, Partner and Head of General Insurance at Barnett Waddingham, added: “We have seen significant progress made by LMA members in terms of developing their AI frameworks and governance over the past 18 months.

We hope that market participants find the toolkit useful as they set the foundation for their AI journey, allowing them to reap the benefits of AI in a controlled manner.”

Notes to editors

• The AI Adoption Toolkit has been developed by the LMA in collaboration with Barnett Waddingham.
• It builds on insights from recent LMA research into AI risk management across the Lloyd’s market.
• The toolkit is designed to support managing agents at different stages of AI adoption.

All LMA guidance documents, including the AI Adoption Toolkit, are purely illustrative and aimed at Lloyd’s managing agents, brokers, and other market participants. The practices referred to in such documents may not be applicable or correct in all circumstances and should not be regarded as definitive. Practitioners may reach different conclusions according to the specific circumstances of a risk, and it is for them to decide whether any practice referred to in a guidance document is appropriate or acceptable. The LMA does not protect its intellectual property rights over guidance documents, and neither the LMA nor any party involved in their preparation accepts any liability arising from reliance on them.

Media relations contacts 
 
LMA: 
Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com 

Omnia Partners: 
Will White, Partner | +44 777 1555247 | Email: will.white@weareomniapartners.com

About the Lloyd’s Market Association 

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. 59 Lloyd’s managing agents and 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. 

• Cost gaps between different legal markets globally widen sharply as injury severity increases.
• High-severity claims show the greatest volatility and tail risk.
• Interest regimes can materially inflate long-running claim outcomes.

London, 22 April 2026: The Lloyd’s Market Association has today published new analysis from the LMA International Bodily Injury Index. The index covers 96 jurisdictions in scope, with year-on-year analysis based on jurisdictions where data is available in both years for the same scenario.

With a second year of data now available, the Index is beginning to reveal clearer patterns in severity, volatility and cost drivers across jurisdictions, helping insurers sharpen underwriting assumptions, reserving approaches and claims strategies.

The Index is a three-year strategic project developed by the LMA’s International Liability Business Panel to support analysis of bodily injury awards trends across 96 jurisdictions worldwide (excluding the USA). In addition, the Index provides state-level data for Australia and provincial data for Canada.

Key trends from two years of data include:

High severity outcomes are concentrated in a small number of jurisdictions
The Index continues to show that the most expensive outcomes sit in a limited group of locations, particularly for life-changing injuries such as paralysis, serious brain injury and total loss of sight. This includes jurisdictions such as Canada and Australia, where lifetime care assumptions and earnings-related losses materially increase claim values.

For example, paralysis scenarios reach very high levels in the province of Ontario and the state of New South Wales compared with many European jurisdictions, highlighting how a small number of locations can disproportionately drive portfolio severity.

Minor injury costs are relatively stable in many European jurisdictions, with notable outliers
Across several European jurisdictions, minor and superficial injuries remain comparatively contained and show modest year-on-year movement. For example, England and Wales increased by 4% from £2,924 to £3,051 for the minor injury scenario, a level broadly consistent with a number of EU jurisdictions where minor injury awards remain relatively stable and tightly bounded.

However, the Index also shows clear outliers even for low severity claims. Hungary’s minor injury estimate rises from HUF1.5 million or EUR3.9k to HUF2.5 million (EUR6.5k), creating a materially different cost profile versus neighbouring jurisdictions. Similar divergence can be seen outside Europe. For example, New South Wales shows higher minor injury outcomes than many European markets, reflecting broader approaches to damages even at the lower end of severity.

The gap widens sharply as severity increases
Jurisdictional divergence becomes far more pronounced for severe injuries that involve lifetime care, long-term loss of earnings or permanent disability. For example, the amputation below the knee scenario shows multi-million outcomes in New South Wales and Ontario that are significantly higher than many European jurisdictions. This pattern accelerates further for moderate brain injury and paralysis, where lifetime care assumptions and earnings multipliers drive the majority of cost.

Volatility is most visible in severe injury categories
Across multiple jurisdictions, year-on-year movement is substantially larger at the catastrophic end. This has practical consequences. For example, in a jurisdiction such as Australia, a portfolio which appears manageable on minor and moderate injury claims, can become materially loss-making if it is exposed to a small number of paralysis or serious brain injury claims, given the scale of lifetime care awards.

Interest can be a major cost escalator, with wide variation in both rate and start point
The Index highlights that interest is not a technical footnote; in some jurisdictions it can materially change ultimate cost, particularly where claims take a long time to settle or where proceedings are prolonged. Examples include:

• Argentina, where interest is stated as the active rate of Banco Nación, shown at very high levels in both years, including figures of 97% in the prior view and over 40% in the updated view, still a significant tail cost driver in delayed settlements.
• Spain, where penalty interest can apply if insurers fail to pay within set timeframes, including an example of 20% per annum after two years in certain circumstances.
• Jurisdictions that apply no interest on compensation (or effectively zero) creating a clear contrast in tail exposure.

For insurers, this reinforces the importance of timely claims handling, particularly in jurisdictions where interest can materially increase ultimate cost. It also underlines the need for careful reserving for interest and cost where claims take longer to settle.

What this means for insurers

The emerging trends have direct operational implications, including:

• Pricing and attachment points: higher severity jurisdictions may require different pricing adequacy tests, tighter policy limits or adjusted reinsurance structures.
• Reserving and capital allocation: volatility at the severe end increases uncertainty in ultimate loss cost, which can drive higher risk margins and more frequent assumption refreshes.
• Claims strategy: timely claims handling and early engagement are important in all jurisdictions. Where interest or penalty interest can materially increase ultimate cost, proactive case management and appropriate use of local counsel can help support fair and efficient resolution.

David Fitzpatrick, Chair of the LMA’s International Liability Business Panel and Executive Underwriter at Ascot, said:“Now that we have two years of data, we can see more clearly where bodily injury exposure is concentrated, where outcomes are stable and where they are moving quickly. The Index underlines the importance of jurisdiction-specific understanding, particularly for high severity claims where differences in approach to care, earnings and interest can transform the ultimate cost.”

Chris Mather, Secretary of the LMA’s International Liability Business Panel and Senior Executive, Technical Underwriting at the Lloyd’s Market Association, added:“For insurers, the value of the Index is practical. It supports sharper underwriting assumptions and more resilient reserving, and it helps claims teams understand where local factors, including interest and severe injury awards, can materially influence ultimate outcomes and timeliness. This can support timely, well-informed decision making and fair resolution for claimants.

The LMA International Bodily Injury Index, collated by DAC Beachcroft, provides a consistent view of bodily injury claims outcomes across jurisdictions. More data is expected this year, helping us see deeper trend analysis as coverage continues to expand.and reliability that people depend on.” 

Notes to Editors 

Media relations contacts 
 
LMA: 
Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com 

Omnia Partners: 
Will White, Partner | +44 777 1555247 | Email: will.white@weareomniapartners.com

About the Lloyd’s Market Association 

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. 59 Lloyd’s managing agents and 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. 

Africa remains the largest source of claims, while Europe sees the highest total payouts 

London, 20 April 2026: The Lloyd’s Market Association, International Underwriting Association and London & International Insurance Brokers’ Association today published the results of their annual survey of global trade credit insurance claims, conducted by A2Z Risk Services. 

The survey shows that: 

• A total of 136 claims were payable in 2025, down from 185 in 2024. However, the aggregate value of claims rose to US$438.5 million, an increase of almost US$38 million year-on-year.  

• Only three claims, representing just over 2% by number and around 3% by value, were paid after the contractual deadline, due to payment processing issues rather than disputes over coverage. In addition, a small number of claims were affected by ongoing sanctions-related clarifications, with insurers working to meet their regulatory obligations where required. 

• Africa remained the largest source of claims by volume, accounting for 63% of all claims. However, Europe accounted for the highest proportion of claims by value, representing more than a third of total amounts paid. The Americas accounted for 13% of claims, while Asia represented 7%. 

• The public sector continued to see more claims than the private sector, with 65% of claims coming from the public sector. However, with higher average claim values in the private sector, the total amounts paid were significantly higher: 67% to the private sector and 33% to the public sector. 

David Powell, Head of Technical Underwriting at the Lloyd’s Market Association, said: “Trade credit insurance remains a vital enabler of global trade. While the number of claims fell in 2025, the increase in overall claim values underlines the importance of robust underwriting and long-term capacity to support complex transactions. 

“The data also demonstrates the continued reliability of the market. Even where payments are delayed due to operational or regulatory complexity, insurers are working to ensure that valid claims are ultimately settled.” 

Joe Shaw, Director of Claims at the International Underwriting Association, said: “Trade credit insurance supports economic growth by enabling exporters and lenders to extend credit with confidence and to access financing on better terms. The survey results once again show that the London market delivers dependable outcomes for policyholders across a wide range of geographies and sectors.” 

Jacqueline Girow, Executive Director at the London & International Insurance Brokers’ Association, said: “For brokers and their clients, these findings reinforce the value of trade credit insurance as a practical risk management tool in an uncertain trading environment. While exposures are becoming larger and more complex, the survey shows that the market continues to respond consistently when claims arise, providing the certainty and reliability that people depend on.” 

Notes to Editors 

Media relations contacts 
 
LMA: 
Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com 

IUA: 
Scott Farley, Director of Communications | +44 020 7617 4449 | Email: scott.farley@iua.co.uk 

Omnia Partners: 
Victoria Sisson, Director | +44 794 129 4872 | Email: victoria.sisson@weareomniapartners.com 

Notes 

The above release is not a recommendation to buy comprehensive non-payment insurance. Clients should seek advice on their specific requirements from an appropriate intermediary.  

About the Lloyd’s Market Association 

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. 59 Lloyd’s managing agents and 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 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. 

About LIIBA 

The London & International Insurance Brokers’ Association represents the interests of Lloyd’s insurance and reinsurance brokers operating in the London and international markets. 

AI adoption more than doubles across the Lloyd’s market in 12 months, with 93% of survey respondents building governance frameworks

The Lloyd’s market is moving from early-stage AI experimentation to more structured, governance-led adoption

London, 16 April 2026: The Lloyd’s Market Association (LMA), in collaboration with Barnett Waddingham and the LMA Risk Next Generation Committee, has today published new findings from its latest market survey on artificial intelligence (AI) risk management.

Based on 39 responses from firms representing over 60% of Lloyd’s market stamp capacity, the findings reveal a significant shift in the market over the past 12 months, with AI adoption moving from limited experimentation to more widespread early-stage deployment.

In 2025, around 50% of firms reported limited or no AI implementation. Twelve months on, AI is now used across much of the market, with 93% of firms who responded having, or developing, formal AI frameworks to support adoption.

This reflects a clear transition from cautious exploration towards more structured and governed adoption, with firms prioritising oversight, accountability and risk management ahead of large-scale deployment.

Key findings from the survey include:

• 93% of respondents have, or are developing, an AI framework, with 72% already in place and 21% in development.
• All interviewees emphasised the importance of human ownership of outputs, with over 60% explicitly mandating human oversight of AI-generated outputs.
• 44% assign AI governance to the Chief Technology Officer, while 33% have established dedicated AI governance committees.
• Data privacy, cybersecurity and third-party risk are now the leading concerns across the respondents.
• Talent and skills gaps were identified as a key challenge, with firms highlighting the need to build internal expertise to support effective AI adoption.

AI adoption accelerates sharply year-on-year

The survey highlights a clear step change in adoption across the Lloyd’s market.

In 2025, AI and machine learning adoption was described as in its infancy, with around 25% of survey respondents reporting the use of AI.  A year on, there has been steady progress across a number of functions such as underwriting, operations and compliance.

This growth is primarily driven by generative AI applications, such as ChatGPT or Microsoft Copilot, and internal productivity use cases, including summarisation, reporting and data processing. Despite this acceleration, these applications remain largely focused on efficiency gains, with limited deployment in core underwriting, pricing and claims decision making.

Governance frameworks become a clear priority

A defining shift over the past year is the rapid development of governance frameworks across the market.

Last year’s findings highlighted concerns around regulatory uncertainty and the absence of robust AI frameworks. In contrast, the 2026 survey highlights that governance is now firmly established as a priority, with the vast majority of responding firms implementing or developing structured frameworks.

Firms are embedding policies, oversight structures and controls ahead of scaled deployment, reflecting a more deliberate and risk-aware approach to AI adoption.

Human oversight also remains central to decision making, with over 60% of firms explicitly requiring mandatory review of AI-generated outputs, ensuring that AI is used to enhance, rather than replace, expert judgement.

While progress has been made, accountability and regulatory integration remain areas of ongoing development in the market.

Data risk moves to the top of the agenda

Despite progress in AI adoption and governance, the findings also show a clear shift in how firms perceive AI-related risks.

In 2025, data security and privacy were not consistently ranked among the top priorities. Comparatively, in 2026, data privacy, cybersecurity and third-party risk have now emerged as some of the most prominent concerns across the market.

This reflects growing awareness of the risks associated with scaling AI, particularly around data handling, third-party dependencies and system security. Around one in four firms still rely on general third-party risk management frameworks, rather than AI-specific provisions.

Concerns around data quality, bias and the reliability of AI outputs remain ongoing, highlighting the need for continued investment in validation, testing and assurance as use cases evolve.

Sanjiv Sharma, Head of Actuarial and Exposure Management at the Lloyd’s Market Association, said: “AI adoption across the Lloyd’s market has accelerated quickly over the past 12 months, but what’s encouraging is that governance is being built alongside it, rather than after the fact, with over 93% of those surveyed having a framework in place or being developed. What the survey clearly highlights is that the market is still early in its journey, but the foundations for responsible adoption are clearly being put in place.

There is no clear consensus across the market on where responsibility for AI governance should sit, with firms adopting a range of approaches across technology, risk and compliance functions.”

Wan Heah, Partner and Head of General Insurance at Barnett Waddingham, added: “The market is moving past experimentation and towards a more disciplined use of AI, with governance, data protection and validation now firmly in focus. The real test is ensuring these frameworks keep pace as AI applications become more complex.

There is no single blueprint for AI governance. Firms need to strike a careful balance between risk and opportunity and put in place practical, robust risk management strategies to support responsible adoption.”

Notes to editors

The 2026 survey builds on the LMA’s 2025 discussion paper, Artificial Intelligence and the Lloyd’s Actuary: A Snapshot of Opportunity and Risk which found that around 50% of survey respondents had limited or no AI implementation, reflecting the early stage of adoption at that time.

This survey is based on 39 survey responses, representing over 60% of Lloyd’s market stamp capacity, supported by 11 in-depth interviews with senior market practitioners.

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Will White, Partner

+44 777 155 247 | will.white@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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.

London, 15 April 2026: The Lloyd’s Market Association (LMA) has today published new guidance for managing agents on PS25/21: Simplifying the insurance rules, supporting firms in applying the Financial Conduct Authority’s (FCA) more proportionate regulatory approach to commercial and wholesale insurance business.

The guidance is designed specifically for Lloyd’s managing agents and highlights key updates to the FCA rulebook arising from PS25/21, including how firms can take advantage of greater flexibility within product governance, oversight and review requirements, while continuing to deliver good outcomes for customers.

PS25/21 represents the FCA’s first policy statement aimed at unwinding some of the regulatory burden that followed the pricing practices market study, where rules designed for retail products were applied across all general insurance business. The LMA guidance explains how managing agents can use the revised framework to focus conduct risk resources where they are most needed.

Key areas covered in the guidance include:

• Proportionality based on customer type and size, including application of a new SME watershed aligned with Financial Ombudsman eligibility.
• Wider use of the bespoke exemption, enabling tailored and open market business for smaller business customers and individuals to sit outside product governance requirements where appropriate.
• Greater flexibility around accountability, including the ability for a lead underwriter to assume sole responsibility for manufacturer obligations on subscription and binder business.
• A more risk-based approach to product review frequency, removing the default annual review requirement.

Commenting on the guidance, John Levett, Head of Regulatory Affairs at the LMA, said: “PS25/21 is a first step towards a more proportionate regulatory regime for the London market. This guidance has been drafted in collaboration with managing agents and shared with the FCA for comment before publication. Applying these changes should reduce the regulatory burden for the majority of our members. We thank the FCA for all the hard work it has done so far.

“There are still changes needed to better support our market and deliver on the international competitiveness and growth objective. Trading in 200 territories, all with their own rules and regulators, is highly complex and can lead to differences between UK and local rules. We will therefore continue to lobby the FCA on developing a regulatory framework appropriate for international business being written in the Lloyd’s market.”

The guidance also includes practical commentary, worked examples and decision trees to help firms assess the application of the rules in areas such as bespoke business, specialist risks and group policies.

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Victoria Sisson, Partner

+44 794 129 4872 | victoria.sisson@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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.

London, 14 April 2026: The Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR) have released the Lloyd’s 2026 Insights Report, to which LMA members have digital access. The report provides a detailed analysis of Lloyd’s and syndicates’ 31/12/2025 year-end results.

The report reveals that, with individual syndicates delivering strong results, Lloyd’s remains well positioned as a compelling proposition to investors. The market has seen an increasing number of new entrants and a growth in risk capital deployed through London Bridge II.

Key findings from the report include:

Strong performance continues across the market
Managing agents delivered a full‑year result in 2025 of profit before tax of £10.6bn (+10.1%) and a combined ratio of 87.6% (2024: 86.9%). Underwriting and investment returns have further strengthened the market’s balance sheet, with total capital reaching £49.8bn (+5.7%) and the central solvency coverage ratio at 496%. The underlying combined ratio rose to 81.8% (2024: 79.1%), reflecting disciplined underwriting alongside a modest increase in expense and attritional loss ratios, while prior‑year reserve releases provided a 1.7% benefit to the combined ratio. This result represents the third consecutive year where return on capital has exceeded 20%.

Entering the next phase of the cycle from a position of strength
While signs of price softening are evident in some classes, the 2025 results confirm that Lloyd’s enters this next phase with strong capitalisation. However, the LMA view is that for Lloyd’s to successfully navigate the next phase of the cycle, three things are necessary: maintaining disciplined underwriting, new entrants which are additive to the market and reduced friction in capital deployment.

Investment returns remain a powerful contributor to total performance
Higher interest rates enhanced investment returns in 2025 to £6.0bn (2024: £4.9bn). Investment results contributed meaningfully to overall profitability and reinforce Lloyd’s attractiveness as a diversified investment proposition with low correlation to traditional asset classes.

A compelling relative value proposition for investors
In 2025, Lloyd’s continued to demonstrate its attractiveness relative to other investment options, delivering strong returns, comparable levels of volatility and low correlation to mainstream asset classes, while outperforming benchmarks such as catastrophe bond indices and providing diversification benefits not readily available elsewhere in global capital markets.

The full report, available to LMA members, offers a deeper understanding of the drivers and trends underlying Lloyd’s performance for managing and members’ agents, brokers and investors. It highlights that Lloyd’s is still seen as an attractive place to invest, as demonstrated by the increasing confidence of investors in placing capital at Lloyd’s.

Paul Davenport, Finance & Risk Director at the LMA, said: “2025 was another strong year for the Lloyd’s market. In the past year, Lloyd’s has upheld its position as an attractive option for investors, buoyed by disciplined underwriting and a focus on rate adequacy across the market. 2025 is the third consecutive year with average returns on capital exceeding 20%.”

Markus Gesmann, Co-Founder of ICMR, added: “Ultimately, Lloyd’s remains one of the financial industry’s ‘hidden secrets’ and a vital contributor to the UK economy. By providing this level of data-driven transparency through our publications and indices, ICMR aims to demystify the market and make Lloyd’s performance more accessible to the global investment community.”

For more information or to discuss the results of individual syndicates, please contact the Lloyd’s Market Association.  

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Will White, Partner

+44 777 155 247 | will.white@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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 ICMR

Insurance Capital Markets Research (ICMR) provides independent, quantitative research and valuation services for the global specialty (re)insurance market, with a particular focus on the Lloyd’s of London market (Lloyd’s).

We believe that the Lloyd’s market offers a unique, uncorrelated asset class for investors, but it has historically lacked the transparency required for sophisticated capital allocation.

We exist to fix that. By cleaning, standardising, and modelling granular underwriting data, we provide insight into the “Alpha” that investors seek and the benchmarking that carriers need.

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. For more information visit: https://insurancecapitalmarkets.com

London, 01 April 2026: In the last month, McKenzie Intelligence Services has confirmed that six international airports (in Bahrain, Iraq, Kuwait and the UAE) have been attacked and more than 20,000 flights cancelled. Airspace has also been closed from time to time in many of the impacted countries in the Middle East.

The Lloyd’s Market Association (LMA) has carried out a survey in the last 24 hours of the members of our Aviation War Committee who are leading members of the aviation war market. All members who responded have confirmed that they continue to have appetite to underwrite hull and liability war risks and the majority of existing aviation war policies remain in place. Over 80% have seen no increase in price for non-war cover for over-flights.

In summary, insurance is available for any airlines wishing to fly where airspace is open across the Middle East. The aviation operators have not been issued with notices of cancellation across the board by insurers and nor are they consistently having to face rate increases. 

Since the beginning of the conflict, the LMA has been working closely with aviation insurers to ensure they receive immediate notice of a “material change” in the insureds’ operations as they resume flying when airspace opens. While underwriters have not been issuing blanket notice of cancellation, they do need to understand the extent of their exposure.  

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Will White, Partner

+44 777 155 247 | will.white@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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.

London, 23 March 2026: The Lloyd’s Market Association (LMA) has today issued a market statement clarifying the continued availability of marine war insurance cover for vessels operating in the Strait of Hormuz.

Three weeks since the start of the hostilities in the Middle East, we are still seeing reports that suggest insurance coverage is cancelled or unaffordable and that this is the reason that vessels are not transiting the Strait of Hormuz. 

This is not accurate.

In the marine war insurance market comprising hull, cargo and liability, notice of cancellation is built into shipowners’ contracts to allow renegotiation to take account of increased risk to vessels should they be trading in an area of heightened risk. The hull war risk market has a well understood notification mechanism agreed between shipowners and insurers in their war contracts, which allows war premiums to remain very low in peacetime. In fact, such premiums are little more than notional: if applied, for instance, to an average family car, the cost would be under £1 for a year. This mechanism instead allows for premiums to be reassessed when risk increases. This happened most recently with the Ukraine war and in the Red Sea.

War insurance is currently available to cover insureds from war perils and it remains available within the Lloyd’s and London company market today for vessels wishing to transit the Strait of Hormuz. Liability coverage through the P&I Clubs is non-cancellable and remains reinsured in the London market. A small number of fixed premium P&I covers for charterers were cancelled and mostly repriced.

The LMA conducted a survey of the main participants in the Lloyd’s marine war market in the week after the commencement of hostilities. Of those that responded, 88% continue to have appetite to underwrite international (including US and UK) linked hull war risks, and over 90% continue to have appetite to underwrite international (including US and UK) linked cargo. Premium terms will differ according to each syndicate’s appetite. 

The reason ships are not moving is not through a lack of insurance; it is a question of the risk to crew and vessel safety being assessed by the ship masters and owners as too high. 

A statement from the International Chamber of Shipping on 19 March, highlighted the plight of the vessels’ crews (around 20,000 of whom are impacted). There have been at least 11 fatalities, including on a tug trying to assist an abandoned vessel. 

Ships’ bunkers and stores are depleting. There is no certainty as to the availability of salvage vessels to assist if a vessel is in distress and concerns as to which ports are available for refuge in the event that a vessel requires it. There is also concern that chemical tankers are running low on the stabilisers that maintain the integrity and stability of their cargoes.

Since the start of March to late last week there has been very little traffic through the Strait of Hormuz. According to Lloyd’s List intelligence which covers cargo carrying vessels of more than 10,000 dwt, there have been 111 transits in total, although there may have been more who transited with their satellite tracking switched off. Lloyd’s List also stated that there have been 78 eastward bound vessels and 33 westbound. The latter is largely sanctioned/shadow fleet tonnage.

In terms of the types of vessels transiting, the best information to hand is that this is made up of 39 bulk carriers, 23 crude oil tankers, 16 containership, 14 product tankers, 10 gas carriers and 9 others. In terms of ownership/flag, the primary ones are Iran (26%), Greece (17%) and China (9%).

In terms of whether there is any link to Iran (i.e. ownership, flag, sanctions, shadow fleet, or caller to Iran); it is believed that over 60% of all traffic has an Iran nexus or has negotiated consent from Iran to transit.  

Since the start of hostilities, the Joint Maritime Information Center (JMIC) have listed 23 maritime attacks involving commercial vessels and offshore infrastructure reported across the Arabian Gulf, Strait of Hormuz and Gulf of Oman. The incidents involve a wide range of vessel types and flag states, with no consistent pattern of ownership.  Underwriters have already confirmed that a number of the non-sanctioned casualties are insured or reinsured in the London market and numbers will inevitably rise the longer the conflict endures.

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Will White, Partner

+44 777 155 247 | will.white@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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.

London, 03 March 2026: Seventeen months from the first edition of the Lloyd’s Market Association (LMA) commissioned report, Underwriting the Transition 2025, the second edition, released today in collaboration again with KPMG UK, reveals a fundamental shift from last year’s transition assumptions.

These reports establish a common baseline, mapping the decarbonisation pathways for critical sectors and identifying the levers available to insurers to support a managed transition. They provide a foundational framework for understanding how first-party property coverage will need to evolve in the face of changing climate risks.

During the last year the landscape has changed. The “State of the World” in 2025 presents a sobering reality: the average increase in global temperatures has now exceeded 1.5°C and the consensus following COP30 in Belém is that the risk of a “disorderly transition” has heightened.

The insurance market must now navigate a dual challenge: intensifying physical risks and an evolving transition risk profile. This includes, for example, the PRA mandating that climate risks (including climate litigation risk) should be embedded into governance and risk appetites before June 2026.

Paul Davenport, Finance & Risk Director at the LMA, said: “For over three centuries, the Lloyd’s market has been the global laboratory for risk. Lloyd’s managing agents are already underwriting the climate transition. We are not just observing; we are actively supporting our clients across different sectors and industries as they navigate decarbonisation and adaptation.”

Josh Holbrook, Director, Sustainability at KPMG UK, who led the team doing the research, said: “The world has changed since we published our first report in October 2024. This second iteration provides an updated viewpoint across the transition sectors that are also key to Lloyd’s underwriters. In doing so, it provides deeper insights into the implications for underwriters, both in terms of opportunities and risks arising from the transition.”

What has changed in 17 months?

The report highlights four key areas of change since the first report:

Energy system dynamics
Global energy demand continues to rise sharply, driven by population and GDP growth alongside accelerating electrification, cooling demand, and the explosive growth of AI and data centres. Under the International Energy Agency’s World Energy Outlook 2025 Current Policies Scenario (CPS), oil demand is not projected to peak before 2050 and could reach 113 million barrels per day, requiring new upstream projects. Unabated natural gas usage is projected to remain stable into the 2030s, while demand for coal is projected to decline more slowly than anticipated unless government climate and energy policies tighten.

Continued demand for oil and gas could decrease stranded asset risk for insurers in the short-term compared to last year’s iteration of the CPS. However, it also signifies slower emissions reduction, contributing to higher long-term physical climate risk. At the same time, slow energy efficiency gains, and an electricity grid that is not keeping pace with the rapid expansion of renewables, create stress and instability in the power system. This makes the assets insurers cover more prone to interruptions, malfunctions and performance issues, increasing the likelihood of operational and reliability related losses.

Technology and AI
AI is emerging as both an enabler of the energy transition and a driver of new systemic risks. AI applications such as grid forecasting, predictive maintenance, and smart-building optimisation, help the energy system run more smoothly by improving reliability and accelerating renewable energy integration. However, the same technologies are fuelling explosive growth in electricity demand, especially because data centres need huge amounts of power to run.

Global data centre electricity consumption is projected to more than double to around 945 TWh by 2030 with the US, Europe and China, which account for 85% of current load, driving most of this growth. While the share of renewables in data centre supply is rising, natural gas and nuclear remain critical for capacity and reliability as grids struggle to keep pace with demand.

For insurers, there are key opportunities for AI models to simulate future scenarios, enhance the accuracy of risk estimation, drive better pricing models and identify false claims more effectively. However, significant risks and challenges remain around data quality and protection, regulatory uncertainty as well as emerging AI-related insurance coverage risks.

Adaptation
At the same time, physical climate risks, such as heatwaves, floods and wildfires, are intensifying. Observed extremes are occurring more frequently and with greater severity, with the World Meteorological Organisation confirming sharp increases in heatwaves, floods, droughts, wildfires and other destructive extremes as global warming increases.

Adaptation to climate change is no longer optional; it must sit alongside decarbonisation as a core strategic priority. The likelihood of compound shocks, such as simultaneous droughts and crop failures, is increasing, with cascading effects on global trade and financial systems.

Regulatory and policy changes since October 2024
Affordability has become a defining issue reshaping national energy policies. High electricity prices and cost-of-living pressures in advanced economies have eroded public support for transition measures, leading some governments to roll back or delay investments.

As a result, global climate policy across all regions has shifted since 2024 towards implementation and competitiveness, with major economies tightening disclosure standards, adjusting transition incentives and recalibrating sectoral targets. These changes create opportunity and risk, expanding demand for insurance in renewables, grids and adaptation projects, while increasing the risk of compliance failures, stranded assets, and transition uncertainty.

Why this is important for insurers?

Paul explains: “The insurance industry, traditionally viewed through the lens of risk management and protection, is a critical partner in this transition. Without insurance, businesses will struggle to achieve their transition goals or build resilience against the impacts of a changing climate.”

Josh added: “It’s only by understanding companies’ transition pathways in more detail that insurers will truly be able to assist and in doing so, realise the opportunities, as well as risks, of transition.”

Paul concluded: “Lloyd’s will continue to be the market to which these complex and emerging risks come for solutions. In the years ahead, the LMA and KPMG UK expect to continue monitoring and reporting on shifts that occur in government policies, regulation, and in the portfolios and risk profiles of Lloyd’s market participants.”

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Will White, Partner

+44 777 155 247 | will.white@weareomniapartners.com

About the Lloyd’s Market Association

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. 59 Lloyd’s managing agents and 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.