Stability and certainty for shipowners and insurers: LMA statement on Memorandum of Understanding
18th June 2026
Update from Sheila Cameron, CEO at the Lloyd’s Market Association and Neil Roberts, Head of Marine and Aviation at the Lloyd’s Market Association
18 June 2026: “The LMA welcomes the Memorandum of Understanding (MoU) between Iran and the United States that has been reported today. While we wait for the details, there are certain practical steps that we believe are necessary before the vessels that have been stranded in the Gulf for the last 110 days can resume transiting the Strait of Hormuz. Further clarifications will also be necessary with respect to longer-running issues impacting shipping, such as the extent to which the US, UK and EU will be lifting sanctions and designations with respect to Iran.
The first step is the importance of cooperation between Iran, US and other states such as Oman on navigational safety and the prioritisation of vessel passage.
The second is verified mine clearance and ongoing surveillance. The threat of mines remains a significant barrier to the resumption of trade in the region. Ongoing monitoring of the seaways is required to provide reassurance and confidence to shipowners and their crew, particularly when it comes to vessels who are considering re-entering the Gulf in the future.
The third is clarity of provision of emergency services support in the event of a vessel or crew requiring rescue whilst in Iranian territorial waters. In order to return to the ‘shipping as usual’ state, ordinary salvage and maritime services, including for incoming vessels, should be readily available.
Fourth, vessels will need to be fully restored to a seaworthy state prior to transiting the Strait, including GPS services, and there are reports of issues, such as stores, fuel and bottom scraping, from vessels as a result of being at anchor for such an extended period.
Fifth, there needs to be a full reopening of the port infrastructure system, including pilotage, berthing and bunkering, to enable the safe loading and discharge of cargos.
And finally, clarity around sanctions, terrorism legislation and toll payments. There must be clear advice and consistency of approach from the UK, EU and US on the extent to which sanctions and designations of Iranian entities have been amended. The MoU refers to shipments of Iranian oil and that there will be no toll payments. However, a greater level of detail will be required before insurers and insureds can be clear as to what trade can safely take place.
The main requirement for recovery is stability and certainty for shipowners and insurers. The road to recovery in the Gulf will be a long and complicated one. It will take months for some sort of normality to return to international shipping with vessels in the wrong place and supply chains distorted, much in the same way that after a public transport strike it always takes time for complicated, detailed timetables to return to normal.
The London insurance market remains open, as it has been over the last 110 days, and is committed to helping clients navigate this complex environment. The LMA will continue to support and represent the views of the market through this period.
Ends
Media relations contacts
LMA:
Carole Porter, Head of Marketing and Communications
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.
The recording of the PRA SS5/25: Climate Scenario Analysis webinar is now available.
Hosted by the LMA Climate Risk Working Group, the session launched a market-wide initiative to support managing agents in meeting the expectations set out in PRA SS5/25, with a focus on embedding climate scenario analysis within governance, decision-making and existing risk management processes.
The webinar introduced plans to develop a practical market playbook that will bring together examples of how climate scenario analysis is being used across the Lloyd’s market to inform underwriting, pricing, capital management and strategic decision-making. The session also explored key challenges, priority use cases and areas where further market guidance would be most valuable.
Watch the recording below.
If you have any questions about the webinar or the wider initiative, please contact Alex Koukoudis.
Presentation slides: When Gigawatts Meet Gridlock: US Data Center Loss Analysis
15th June 2026
Presentation slides from the recent Joint Power Generation Committee event, When Gigawatts Meet Gridlock: US Data Center Loss Analysis, are now available to view.
The session explored the evolving construction, operational, underwriting and claims risks associated with the rapid expansion of US data centre infrastructure and onsite power generation. Discussions covered the increasing use of microgrid and hybrid grid configurations, alongside the growing complexity of associated property, power and construction exposures.
Topics explored included:
supply chain risks affecting critical energy infrastructure
regional inflationary pressures impacting skilled labour and industrial construction projects
current US tariff conditions
course-of-construction failure issues
underwriting and claims considerations arising from the accelerating US data centre boom.
Speakers:
Matthew Senn, Renewable Energy Services Director, Halliwell
Marc Giovannetti, Energy & Engineered Risk US Director, Lloyd Warwick
If you have any questions regarding this event or the presentation materials, please contact me.
AI in Claims Podcast: Exploring the NexGen Survey Findings
In 2025, the LMA NexGen Claims Leadership Group undertook a market survey exploring how claims professionals across the Lloyd’s market are currently using artificial intelligence, their perceptions of the technology and expectations for the future.
The survey received 111 anonymous responses from managing agent claims professionals across a range of roles and seniorities, examining themes including AI adoption, confidence and training, governance concerns, operational opportunities and the future role of AI within claims handling.
Following analysis of the survey findings, representatives from across the Lloyd’s market came together to discuss the results and share their perspectives on the evolving role of AI within claims.
The discussion explores:
current adoption trends and practical market usage
operational opportunities and efficiency gains
governance, oversight and confidentiality considerations
confidence, training and skills gaps
concerns around accuracy, regulation and the human element
future outlook for AI-enabled claims handling.
The discussion is moderated by Lorraine Ekong, Syndicate Claims Manager, CFC, and features:
Alex Flather, Group Head of Strategic Claims, MunichRe
Daniel Cambage, Head of Specialty Casualty Claims, Berkley Specialty London
Industry forecasts point to rare “below-normal” 2026 hurricane season
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:
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.
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
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.
Model Brazilian Intermediary Clauses (Reinsurance) Update
8th June 2026
Following Brazilian Law No. 15.040/2024 coming into effect in December 2025, the LMA, in conjunction with local counsel, has reviewed its model Intermediary Clauses. LMA5101 – Brazilian Intermediary Clause 1 (Reinsurance) and LMA5102 – Brazilian Intermediary Clause 2 (Reinsurance) remain fit for purpose with no changes required. Use of an intermediary clause is mandatory under Brazilian law.
All LMA model clauses are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model clauses as they see fit; the LMA does not protect its intellectual property rights over model clauses. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk. Model documents are available on the Lloyd’s Wordings Repository (LWR).
LMA Third Party Claims Educational Programme for Singapore and Australia
2nd June 2026
The LMA, in conjunction with Wotton Kearney Australia, is delighted to run the LMA Third Party Claims Educational Programme for Singapore and Australia for the second time. A slightly extended scope to the inaugural trip, the programme will now cover general liability, financial and professional lines.
In our latest video, hear from last year’s delegates on their key takeaways, favourite memories and how the trip has helped them in their careers.
Since the inception of Project Spring Clean in 2025, we have received many questions from members about what the project involves and how it works in practice. This blog offers a look behind the scenes of the first major assessment of model wordings and clauses in the Lloyd’s Wordings Repository (LWR) since its creation in 2007.
For ease, the term “wordings” is used throughout to include full policy wordings, clauses and other model policy documentation within scope.
How did the project come about?
In early 2025 the LMA Wordings Team, led by David Powell (Head of Technical Underwriting), initiated a project to review older wordings on the LWR, with the original idea coming from Steven Dennis (Senior Executive, Technical Underwriting, LMA). David raised the project with me just days after I began my role as Senior Executive, Technical Underwriting in the Wordings team at the LMA and asked me to lead on the project. It was immediately clear that the task would be ambitious: a comprehensive examination of hundreds, and potentially thousands, of model wordings and clauses to assess their continued relevance and use in the market.
There was a real possibility of uncovering a substantial volume of wordings needing an update. However, the potential benefits were clear from the outset. Rationalising older wordings no longer used in the market would enable members to locate relevant content more efficiently. In addition, updating out of date wordings that are important to the market would significantly improve the usability of the LWR.
In short, I was both excited and daunted at the prospect of getting started.
What does the LMA wordings team do?
The LMA wordings team works closely with the LMA’s underwriting committees, the Wordings Committee and the Wordings Forum to:
develop new model wordings to provide guidance and support to the market,
maintain and update existing wordings for which the LMA is responsible and
organise briefings and facilitate discussions on topical issues relevant to the wordings community.
All LMA model wordings are published on the Lloyd’s Wordings Repository, where they are freely accessible to LMA members and other market participants. Each year, the LMA typically publishes between 50 and 100 new or updated wordings in support of the market.
The team has previously delivered major project‑based initiatives, including work on cyber model clauses, cyber war clauses and wordings changes arising from the Insurance Act. However, a full-scale assessment of the core LWR wordings had not been undertaken since its inception some 20 years ago.
Further details, including links to recently issued bulletins, can be found on the LMA Wordings webpage.
A brief overview of the LWR
The LWR is a searchable database of wordings regularly used within the London market, including LMA (formerly NMA), LBS (Lloyd’s Brussels), RDW (Regulator Designated Wordings) and selected London Special Wordings (LSW) references. Its purpose is to provide access to current model wordings, while also maintaining an archive of wordings no longer in active use.
Wordings published on the Lloyd’s Wordings Repository (LWR) are all marked with a single status; ‘active’, ‘archived’ or ‘withdrawn’. When a wording is first uploaded to the LWR, it is given the status ‘active’. Subsequently, there could be reasons for a wording to be archived or withdrawn.
The LWR comprises several sections, including:
The Core: contains wordings that are actively managed by the LMA, published either by the LMA or predecessor associations. The Core also includes some LSW and RDW clauses published by Lloyd’s or other market participants that have been recognised or adopted by the LMA, as well as RDW clauses published by Lloyd’s. Wordings in this section can be accessed by all LWR subscribers.
Lloyd’s sections: contains wordings stored by various Lloyd’s Overseas Offices, such as Lloyd’s Germany and Lloyd’s Canada. These can be accessed by all LWR subscribers.
Managing agent section: contains wordings created and owned by Lloyd’s managing agents. These can be accessed by all LWR subscribers.
Brokers/others: for firms wishing to store their own wordings in their own dedicated section of the repository. Broker firms have the option to make their wordings private.
Wordings in scope
The project focused on the approximately 2,500 active wordings in the Core section of the LWR across all classes of business, more than half of which were over 15 years old.
Given the scale, committees were given the option to focus on wordings with effective dates prior to 01 January 2010. Some elected to concentrate on these older wordings, while others chose to assess the full allocation for their area of business.
What was the methodology?
Following detailed analysis, I created a project tracker together with tailored excerpt spreadsheets for each committee, organised by business area. Each excerpt included key details for every wording alongside assessment fields for completion by committees. The data could be sorted by effective date and filtered to focus on pre‑2010 wordings where required.
Committees were asked to determine one of four outcomes for each wording:
Keep – wording remains appropriate and requires no change
Archive – wording no longer used in the market, having become obsolete or superseded
Update – wording would benefit from further technical assessment and possible revision
Withdraw – wording contains errors or is incorrect
The first step was engagement with LMA committee secretaries to agree an appropriate approach. Each was provided with their excerpt spreadsheet and a high‑level overview of the data. It quickly became apparent that a single approach would not work for all committees.
Committee structures and working practices differed significantly. Some met monthly, while others met less frequently. Some had established working groups, while others preferred full committee discussions or email‑based approaches.
For most committees, the project was introduced to the chair and deputy chair, with one of three approaches agreed:
in‑person consideration at full committee meetings (generally only viable where volumes were small)
dedicated working groups reviewing wordings in person or via Teams (by far the most effective approach)
independent assessment by committee members via email (used less frequently and with mixed success).
Progression: a phased approach
As the scale of the exercise became clearer, involving up to 30 committees and up to 2,600 wordings, it was apparent that a phased approach was required. The project was therefore structured as follows:
Phase 1
Data analysis and collaboration with underwriting committees to obtain assessment outcomes (keep/archive/update/withdraw) for all wordings in scope.
Phase 2
Communication with the wider market to obtain feedback, followed by archiving and withdrawal activity, and the scoping and technical assessment of wordings identified for update.
Phase 3
Assess foreign‑language clauses and review as needed.
What project challenges arose and how did you deal with them?
A number of challenges arose during the course of 2025. From a practical perspective, scheduling time with committees was difficult: underwriting agendas are already full, and this project required additional commitment from individuals already giving up time to support the LMA’s work. Being flexible in dealing with each committee was the key.
It became clear early on that there was some confusion around the terms “archiving” and “withdrawal”. To provide greater clarity to the market, I worked with colleagues in the wordings team to formalise the archiving and withdrawal process, which was published in July 2025. Having this guidance in place proved extremely helpful during the project, allowing us to clearly signpost underwriters to the relevant bulletin as questions arose.
There was also a need to demonstrate value. While I am personally passionate about policy wordings, not all underwriters immediately shared that enthusiasm. Reassurance was required that the exercise would be worthwhile, proportionate, efficient and, if possible, even enjoyable.
I’m pleased to say that, despite initial challenges, engagement across committees was positive. The more experienced underwriters often enjoyed reflecting on historic wordings, while providing newer underwriters with valuable context around provisions that continue to have an impact on current business.
From a personal perspective, Project Spring Clean highlighted the learning curve involved in moving from a carrier role to the LMA, which spans the full range of classes across the market. I addressed this challenge through constructive engagement with both LMA colleagues and underwriting committees, drawing on their expertise and willingness to share experience to build understanding and drive the project forward.
Other challenges included wordings that overlapped multiple committees or sat between areas of responsibility, which sometimes required additional engagement and reallocation.
As the “general” wordings did not fall within remit of a specific underwriting committee, I was fortunate to draw on the valuable input of members of the Wordings Committee and other wordings professionals to assess whether they were still in active use.
On occasion, volunteers who had initially offered support were unable to follow through, and in those instances the wordings were pragmatically retained, with the intention that they could be revisited at a later stage.
So how did it go?
Phase 1 assessed the use of 2,000 active wordings:
Keep – more than 1,300 were retained
Archive – over 400 were marked for archiving
Update – just under 170 were identified for review and possible update in Phase 2
Withdraw – a very small number were flagged for withdrawal
What are the plans for Phase 2 and 3?
Phase 2 is well underway, with five bulletins published and feedback obtained from across the market on a range of wordings spanning multiple classes of business. Archiving of earmarked property, casualty, specialty, energy and miscellaneous wordings has now been completed, with marine wordings remaining open for feedback until the middle of May.
In parallel, work has commenced on the assessment of existing wordings identified for update. While fewer than 170 wordings were flagged, it still represents a significant amount of work.
Progress through this phase relies on the continued support of working groups and volunteers, and we are very grateful to those who have already contributed their time and expertise to this next stage of the project.
Phase 3 (the assessment of foreign language wordings) represents the final phase of the project, and the focus will be on defining the appropriate approach before it is progressed.
Key learnings
Age alone is not a reliable indicator of relevance: many older wordings remain in active use.
Engagement strategies need to flex by class of business and committee structure.
Multi‑directional communication (“belt and braces”) proved effective.
Model wordings remain critically important to the market, delivering efficiency, improved contract certainty and consistency.
Maintaining the LWR as a current and reliable resource is essential to its continued value.
And finally, this project would not have been possible without the valued support of our members and volunteers. Thank you so much for your continued support.
The NexGen Claims Leadership Group: Skills and Qualities for Success
The LMA NexGen Claims Leadership Group is a shadow committee to the LMA Claims Committee, which operates as an Executive Board for claims within the Lloyd’s market. NexGen aims to increase engagement with the next generation of claims leaders at a time when the strategic priorities and objectives of Lloyd’s and the market would benefit from those who will live with the future, developing the future.
In this latest instalment of the NexGen Claims Leadership Group video series, members discuss the key skills and qualities that help claims professionals succeed in today’s Lloyd’s market.
The discussion explores the importance of communication, relationship building, technical knowledge and adaptability in claims roles, alongside the personal qualities that support career development in a fast moving and collaborative market environment.
This video is part of a broader LMA initiative to support leadership development and talent progression across the Lloyd’s market.
Watch the video below to hear their perspectives on the skills shaping the next generation of claims professionals.
