Lloyd’s of London will ring the Lutine Bell when it opens its doors for business on 1 September after a five-month closure.
Lloyd’s is the largest trading floor for marine insurance worldwide, and all insurance managers’ eyes will be on the iconic Lime Street building to see how business there responds to life after lockdown.
Initially, it is likely to be a subdued reopening. Lloyd’s has limited capacity to 45% of the 5,000 workers who usually occupy the building.
Strict social distancing will have to be maintained, and glass shields will separate underwriters from brokers. A one-way system to funnel brokers in and out of the building will be another barrier to more spontaneous business interaction.
Underwriters will also be working under the weight of an expected $3bn in underwriting losses that Lloyd’s management is forecasting for its syndicates, and they are likely to take a more cautious view of risk as a result.
Major syndicate operator and marine insurance provider Beazley has said it will have a “smaller presence” at Lloyd’s in the future.
The success in conducting this summer’s round of hull and machinery renewals remotely has led some observers to suggest that the Lloyd’s trading floor should be a thing of the past.
Others have pointed out that it is the most efficient setting for brokers to visit underwriters’ desks and persuade them to add their name to syndicated cover for large-value policies that are typical of marine hull business.
Chief executive John Neal has said he plans to open a virtual underwriting room, which suggests he is preparing Lloyd’s for a future in which business is conducted remotely.
