Lloyd's has delivered its strategic plan to businesses in the market.
The strategic plan describes the package of benefits that businesses choosing to operate in the market will get in return for the cost of operating on the platform.
The plan highlights a clear and transparent performance framework with the aim to treat businesses at Lloyd's more individually and based on track record. The plan said franchisees' individual performance and characteristics would be a key determinant of their capital requirements.
Secondly, Lloyd's said it would offer businesses a capital framework in which the benefits of mutuality outweigh the costs and which could not readily be duplicated outside Lloyd's.
Lloyd's said this would be achieved through a capital setting process which reflected the risk posed to central assets by each individual business, pricing this in a way which would give credit to well-run businesses.
It also said that a capital structure, including mutual assets, would give franchisees the opportunity to benefit from strong market ratings and obtain better returns for their capital providers than on a stand-alone basis.
The plan also emphasised the importance to businesses of the financial strength rating of the platform and the cost-effective, easy access to the world's major markets.
Lloyd's also said it offered a framework of standards for business processes that enabled firms to deliver services to customers at a cost and level of risk comparable with other platforms and offset the inherent costs of a subscription market.
