Lloyd’s Chief Executive Officer Patrick Tiernan has set out his vision for the future of the market, stressing both the need to strengthen Lloyd’s relevance to stakeholders and to reduce the cost of doing business.
He emphasised that growth would be an outcome rather than a target, with efforts focused on building long-term advantages in established hubs such as North America, the UK, and Asia-Pacific, while also deepening presence in Europe and the Middle East.
At the core of Tiernan’s strategy is a commitment to cutting complexity and expenses within the Lloyd’s ecosystem. He acknowledged that “shadow costs” — additional burdens that can create higher expenses or unnecessary bureaucracy for market participants — have been a consistent concern raised during consultations.
To address this, he pledged a “relentless and comprehensive focus on cutting the cost and complexity of operating at Lloyd’s,” adding that oversight should remain principles-based and not excessively restrictive. The ultimate aim, he explained, is that the only distinction between conducting business inside Lloyd’s and elsewhere should be the 1% charge for access.
Tiernan also made clear that the Corporation will not dictate the market’s direction but rather support participants in reaching their objectives “prudently but as efficiently as possible.” Activities not aligned with delivering sustainable returns on capital will be scaled back or discontinued.
Investment, he added, will be directed only to areas where Lloyd’s holds or can build a clear advantage. “We will compete on quality of service and strategic offering,” Tiernan said, underlining that Lloyd’s strength lies not in chasing size but in ensuring meaningful value for its participants.
Finally, Tiernan reiterated Lloyd’s role as a neutral platform, highlighting its ability to serve as a safe harbour for global trade amid ongoing geopolitical tensions.
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