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LLOYD'S has been employing more capit- al than it can profitably use. This year some 2,000 members will drift away. Costs have risen, partly as the price of com- pliance — keeping the market clean. Now Lloyd's chief executive Alan Lord is con- ducting a blitz on the Corporation's own costs, holding them steady in cash terms this year, planning the same for next year, cutting staff by ten per cent with more to go. He is trimming back the expensive overdraft which Lloyd's ran up along with its extravagant building. Lloyd's looks for new business from new rules, which will let us insure cars and houses at Lloyd's with- out a Lloyd's broker having to take our modest order and tout it round the floor. Disasters like the Californian earthquake, Hurricane Hugo and the explosion at
Phillips' plant in Texas (a $103 billion loss, that one), Lloyd's bears in the faith that they will serve to push up premiums and future profits. Members staying in are increasing their commitments. The idea of 'unit trust membership' — letting members pool their risks and so spread them further — may at last find official favour. All the same, while Lloyd's still has half its efforts tied up in such a proven non-growth market as shipping, it has along way to go before it thinks of itself as a business. The members, by their votes, need to say so.
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