Rebalancing Lloyd's of London's reinsurance capacity with our auction expertise.

Providing a fair mechanism for members' trading capacity and balancing risk.

Providing a fair mechanism for members' trading capacity and balancing risk.

The challenge

Founded in a coffee house in 1688, Lloyd’s of London has become the world’s marketplace for underwriters to pool and spread specialist risk. In 2020, over 100 syndicates wrote £35.5 billion of gross premiums on business produced Lloyd’s brokers.

Lloyd’s of London needed a mechanism to enable its members to trade capacity and rebalance their insurance risk. Lloyd’s identified auctions as offering a transparent, open market model for efficient trading, which would allow both Lloyd’s of London and its members to maximise value and transparency. The need to develop a digital insurance marketplace aims to replace a largely manual process.

Rebalancing reinsurance capacity for Lloyd's of London
Rebalancing Lloyd's of London's reinsurance capacity with our auction expertise.
Rebalancing reinsurance capacity for Lloyd's of London

The solution

NovaFori was selected for this project as the complexity of Lloyd’s market required specialist auction and insurance expertise. Working systematically to understand the specific complexities of the insurance market and the trading of risk capacity, NovaFori’s solution provided an efficient and fair mechanism for trading members. Our capacity auction is an auction with more than one possible winner. It allocates supply and demand by aggregating the market's needs and delivering the price at which the market settles (i.e. the most capacity can be placed at the highest possible price).


The result

Agents for insurance syndicates now have a secure and seamlessly integrated online marketplace for the fair trading of their capacity. The auctions run four times per year and allow agents to save time, trade more efficiently and reduce operational risk, while also ensuring that specific auction rules are followed, ensuring real time compliance.

Key features:

  • Automated subscription & tender bid upload
  • Automated and bilateral trade matching process
  • Asynchronous bid validation
  • Filtering and search functionality
  • Full audit reporting
  • Integration with Lloyd’s backend system and security framework