The Lloyd's market's proposed reforms will address many of its structural weaknesses but will be challenging to implement, international credit ratings agency Standard & Poor's (S&P) has said.
The agency said if Lloyd's structural reforms were left unresolved, it would become harder and harder for Lloyd's to sustain its franchise in the global insurance market.
S&P said the importance of the reforms lay mainly in the retention and future growth of corporate capital, adding that it was not efficient for both corporate and third party capital to coexist.
The proposals have no immediate impact on S&P's 'A' insurer financial strength rating on Lloyd's, but they are in line with its expectations for radical reform.
