Lloyd's of London will require its members to make a fresh tranche of loans to the market's central fund on March 27, 2020, subject to approval from the U.K.'s Prudential Regulation Authority.
In addition, Lloyd's will not pay rebates it has been using as an incentive for hitting targeted usage of the London market's electronic placing system, Placing Platform Ltd., or PPL, in 2020, and will not charge a market modernization levy that year. Members paid a modernization levy of 0.07% of gross written premium in 2019.
It also will not charge members any additional levies for the new Future at Lloyd's modernization plan.
Like the previous tranche of loans in 2019, they will be equivalent to 0.33% of gross written premium of the syndicates on which the member participates and be repayable in five years. Also like the previous tranche, they will be used in part to provide capital to Lloyd's Brussels, set to ensure Lloyd's underwriters can continue to access European markets after Brexit.
Lloyd's annual members' subscription will remain at 0.36% of gross written premium in 2020 and central fund contributions will stay at 0.35%.
