Tiernan hails 'generational opportunity' of Lloyd's in first day as CEO

By Rebecca Delaney

June 2 - (The Insurer) - Newly installed Lloyd's CEO Patrick Tiernan said on Monday that he has "big dreams" for the market, while also underlining areas of continuity from his predecessor across underwriting discipline, culture and principles-based oversight.

In a LinkedIn post marking his ascension to the role, Tiernan highlighted the role of trust in the financial strength and stability of the Lloyd's market.

"You have all worked tirelessly to enable the market to deliver several successive years of strong performance and ensured Lloyd’s is now well-placed to grasp a generational opportunity," said Tiernan in an open letter to the market.

"At a time when the world is in flux, I firmly believe we can increase the relevance, influence and brand of Lloyd’s to educate, innovate and inspire. As our long history amply demonstrates, risk and opportunity are two sides of the same coin."

He continued that Lloyd's is able to "punch above our weight" in the global insurance industry owing to its unique licensing networks and regulatory permissions, as well as the market's balance sheet and central fund.

"The total adds up to many times the sum of its parts: no other financial institution can shoulder more risk for each dollar of capital. Lloyd’s doesn’t work despite its idiosyncrasies; it works because of its idiosyncrasies," he said.

Tiernan again underlined the need for sustainable profitability and underwriting discipline – a mainstay of his quarterly market messages during his four-year tenure as chief of markets. He also reiterated the need for an open and inclusive culture, continuing on from his predecessor John Neal's focus on market practices and behaviours.

"As a market, we must be open to new risks, new assets and new frontiers. We will build an open architecture that allows different business models to plug into the market and harness the multiplier effect of the network. And we will open our building to insurance practitioners from around the world," he said.

"We will foster an open and inclusive culture that attracts the best and brightest talent available. Our leaders will uphold the right values and standards. And our colleagues will be empowered to deliver at pace with the freedom to make honest mistakes."

Tiernan also pledged to continue providing oversight "without being overbearing", referencing the Corporation's shift to principles-based oversight and proposals to reform its investigatory powers.

"We will open our ears a lot more and our mouths a little less, remembering that the voice of Lloyd’s carries further when we whisper than when we holler," said Tiernan.

He concluded that the market will continue its "proud legacy" of complex specialty risks, from the next development in quantum computing to manned missions to Mars.

"Whenever I arrive early or leave late here at Lloyd’s HQ, I detour across the marble floor of the empty Underwriting Room and gaze up at the glass ceiling. It’s always a thrill. For me, this is the Madison Square Garden, the Roman Colosseum, and the Sydney Opera House of insurance," he said.

"As your new chief executive, I don’t profess to have all the answers. But in the spirit of openness, I will admit this: I have big dreams. And I cannot wait to begin this next chapter with you."