Lloyd's broker monopoly set to end.
Lloyd's members have overwhelmingly voted to approve the Treasury's proposed amendments to the Lloyd's Act.
The news follows a extraordinary general meeting held yesterday to weigh up proposals the amend the Act, largely unchanged since 1982, by means of a Legislative Reform Order.
The raft of changes will allow managing agents to deal with any intermediary, or even directly with policyholders. They will also allow Lord Levene to serve another term as chairman.
According to a statement, 99.14% of Lloyd's members voted in favour of the proposals, with just 0.86% voting against. All numbers are on a capacity weighted basis. The membership turnout stood at 51.77%.
“This is an overwhelming endorsement from our membership in support of the Treasurys proposals to reform Lloyds governance arrangements and improve access to the market.
Lord Levene said: "This is an overwhelming endorsement from our membership in support of the Treasury’s proposals to reform Lloyd’s governance arrangements and improve access to the market. We are grateful for the continuing backing of our membership."
The Treasury claims that using a Lloyd’s broker adds 5% to the cost of a deal. It estimates that removing Lloyd’s brokers’ exclusive access to the market would save up to £200m a year - part of £1.7bn savings in adminstrative costs over the next decade.
The Treasury has also proposed changes to the workings of the Lloyd’s council, which include the removal of the requirement for the Governor of the Bank of England to approve new members.
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Lloyd's reform proposals