One by one, Lloyd's insurers have been setting up businesses outside Lloyd's.

With only a handful of syndicates that possess that unique Lloyd's quality to write solely in the world's oldest market, companies are increasingly looking to take business elsewhere.

Hiscox and Amlin have found their way on to the Bermudan shores to take advantage of the island's improved tax and regulation regime.

Others, such as the newly rebranded Novae and Brit, have opted for FSA-regulated insurance companies within the Square Mile, to target less volatile small-ticket business, such as directors' & officers', general liability insurance and professional indemnity.

Those that want to write the smaller size business feel the various levies put in place by Lloyd's - central fund contributions, subscription charges and syndicate loans that are only repaid if the market survives any catastrophic losses - are simply too high to justify keeping that type of business in Lime Street.

As one underwriter puts it: "If it costs you £15,000 to sign a policy when the average premium is £3,000 and outside Lloyd's the cost is £30, why would you not choose to set up a non-Lloyd's vehicle?"

The challenge is to address the issue stopping small profitable business from being done in the market.

Everyone seems to be sympathetic to Lloyd's efforts to improve business efficiency in the market and no doubt they will be heartened by Luke Savage's letter this week promising to cut the central fund levy a year earlier than expected.

But will reduced levies be enough to win back Lloyd's lost custom?

A reduction in levies is a good thing but a quarter, half or even a three-quarter share of a £40m capacity, for example, is still - as one commentator puts it - a "chunky" cost for even the most moneyed insurer.