The Board welcomed representatives from the Prudential Regulation Authority (PRA), including Gareth Truran and Nylesh Shah, for a discussion on regulatory priorities for 2025. Key themes included managing cyclicality in the insurance market, capital modelling assumptions, cyber risk and operational resilience. The PRA emphasised the importance of streamlined regulatory oversight and reducing duplication with Lloyd’s, particularly in areas such as data collection and solvent exit planning. Initiatives to promote growth included simplifying reporting, enabling market access for new entrants and improving international competitiveness.
Board members questioned the PRA’s approach to competition and growth, the efficiency of authorisation processes and potential delegation of oversight to Lloyd’s. The PRA acknowledged room for improvement in communicating progress and clarified its collaborative work with Lloyd’s on Blueprint Two. Expectations around management information, broker commissions and cyber risk were also discussed.
Sir Charles Roxburgh, incoming Chair of Lloyd’s, introduced himself and outlined his transition plan, including engaging with firms across the market and overseeing the CEO recruitment process. He emphasised the importance of cultural leadership, strategic alignment and maintaining Lloyd’s international standing, particularly in the US. He welcomed input on the CEO search and highlighted the need for continued technological transformation and diversity.
Board members expressed support for Sir Charles’ appointment and discussed priorities for the incoming leadership, including transparency and strategic alignment. Concerns were raised regarding Blueprint Two governance and communication.
The Board reviewed the recent board effectiveness review, which received positive feedback overall. Suggested improvements included more forward-looking agenda planning, informal engagement with the Chair and greater diversity. Future actions include one-to-one discussions to identify diverse candidates, a structured engagement plan and a refreshed approach to strategy discussions.