The Joint Liability Committee reviewed recent market developments relating to war risk and liability exposures. Members discussed lessons learned from the recent Red Sea Notice of Cancellation process, noting the benefits of early broker engagement in identifying practical issues and supporting market implementation. The committee also considered how future consultations might be structured to facilitate broader and more consistent market feedback. 

Discussions continued on the relationship between liability market responses and Joint War Committee listed areas. Members considered developments in the Black Sea region, the implications of any future amendments to listed areas and the importance of maintaining flexibility to respond to liability-specific considerations. 

The committee received an update on the progress of LSW169A, with a small number of issues remaining under review before the wording can advance through its approval process. Positive feedback was also noted from the recent Under 35s breakfast event, which helped increase awareness of the committee’s activities among newer market practitioners. Members additionally discussed emerging climate litigation developments in the United States and noted the potential implications of the new Chinese Maritime Act for contractual choice-of-law provisions in maritime disputes. 

The Joint Liability Committee discussed developments in the Red Sea following further attacks on commercial vessels and considered the potential expansion of the Joint War Committee Listed Areas. Members reviewed the implications for liability insurers and supported greater alignment between liability war-risk arrangements and the areas designated by the Joint War Committee. 

The committee considered whether war risks should be separated from non-poolable liability covers. A phased approach was favoured to minimise market disruption, supported by early engagement with brokers, insureds, the International Group and other stakeholders. Discussion also covered the Lloyd’s P&I war breach areas risk code, premium allocation and uncertainty around crew-related claims arising from conflict zones. 

Updates were provided on planned work relating to the HNS Convention, product liability exposures associated with software and artificial intelligence, and obtaining legal advice on local laws that may override international conventions. 

The Joint Hull Committee discussed initial market experience with the recently introduced Strait of Hormuz toll wording, including its intended application and interaction with existing sanctions provisions. Members agreed that further practical experience was needed to assess its effectiveness. 

Legal updates covered fair presentation obligations under the Insurance Act, developments in the Nord Stream litigation and proceedings concerning Ukrainian vessels detained following the outbreak of hostilities. Subcommittee updates included work to modernise navigation limits, the yacht helicopter clause, tender-related claims trends and the review of LMA5403. Progress was also reported on updating the JH2013/007 survey forms to reflect modern underwriting, operational and cyber-security considerations. 

The committee also considered concerns affecting Mortgagees’ Interest Insurance and agreed to establish a working group to review wording, underlying security and warranty issues. Updates were provided on engagement with the International Chamber of Shipping and the SafeTow emergency towing product. 

The Joint Cargo Committee reviewed changes to the Global Cargo Watch List and received geopolitical briefings on the Middle East and the Russia–Ukraine conflict. Discussions considered the continuing risks to commercial shipping, ports, infrastructure and regional cargo routes. 

Members discussed the need for clearer market communication when watch list areas change and agreed to explore notification options with LIIBA. The Committee also considered uncertainty around event aggregation and requested an update on an unresolved Whitespace defect affecting Cargo GUA notifications. 

Work continued on several wording projects. The storage wording was approved for publication, while the pre-launch wording remained under review. The Committee agreed that the existing LNG clause adequately addressed boil-off and should proceed to publication. A legal view on the China Maritime Code 2026 was also requested. 

The LMA Tax Committee discussed key international tax and regulatory developments affecting the Lloyd’s market, including OECD Pillar Two guidance, proposed foreign permanent establishment exemption rules, Nigerian and South African tax requirements, French IPT audits and ongoing Velonetic tax reporting issues. Members also considered global e-invoicing developments, India’s GIFT City tax framework, international controlled transactions reporting, Lloyd’s VAT arrangements and US tax loss carry-back claims. The Committee agreed a number of follow-up actions with Lloyd’s, HMRC and external advisers, alongside plans for further market guidance and training.

The LMA Tax Committee discussed key developments affecting the Lloyd’s market, including proposed changes to the UK foreign permanent establishment exemption, Nigerian withholding tax requirements, Pillar 2 reporting, South African tax requirements, US tax loss carry-backs, Canadian GST legislation and India tax audits. The Committee also considered ongoing UK VAT arrangements, Australian tax and stamp duty matters, and wider market reporting initiatives. Members agreed a number of follow-up actions with Lloyd’s, HMRC and external advisers, with further updates to be provided at future meetings.