David Springbett has produced his own 24-point plan to ensure Lloyd's survival in the wake of pounds 6bn worth of losses. He will be presenting the proposals at meetings of Lloyd's members over the next few weeks.
Mr Springbett argues that Lloyd's proposals fail to resolve the financial uncertainties of the past and numerous legal actions that are under way between Lloyd's members and companies in the market.
He suggests that Lloyd's business should separate into two parts. All business up to 31 December 1993 would be taken over by a new company, Lysold plc, which would be controlled by Lloyd's 20,000 members. Lysold would own a Bermuda- based subsidiary, which would handle the entire financial problems of the market outstanding up to the end of the year.
Lloyd's, argues Mr Springbett, would be able to recapitalise its market place by inviting companies rather than individuals to invest in the community.
The Lysold operation would promise to attempt to settle all litigation outstanding relating to the losses over an 18-month period with a promise to settle 40 per cent of the losses on the worst-hit insurance syndicates.
Mr Springbett says that Lloyd's has power to reorganise its market without the approval of the membership.
Professionals within Lloyd's are sceptical that Mr Springbett's plan has any chance of success. It would need the approval of the Department of Trade and Industry, the main regulator of the insurance community.Reuse content