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Law360, London (November 3, 2020, 1:52 PM GMT ) Lloyd's of London said on Tuesday that it will keep its underwriting room open only one day a week as England gears up for a second national lockdown.
The corporation said it would not close completely from Thursday, even though the government has advised nonessential businesses to do so, as it seeks to support the market before reinsurance renewals start on Jan. 1 next year.
The underwriting room, a spacious four-floor City institution where most business is still done face-to-face, was closed completely in the first national lockdown in March. Staff were sent home to work fully online.
Lloyd's said in an update on its website that the underwriting room will open on Wednesdays only during the second lockdown, which will last until Dec. 2. It will be closed on other days.
"In order to provide access to the market during the crucial period in the run-up to 1/1 renewals, we have taken the difficult decision to reduce the number of days the underwriting room is open," the corporation said. "Unlike the last national lockdown, Lloyd's now operates a COVID-secure working environment, with extensive measures in place to ensure the safety of everyone who comes into our buildings."
Lloyd's has required all workers to wear face masks in the underwriting room since it reopened in September.
The January renewals season is the busiest period of the year, and many reinsurers are expected to introduce sweeping changes to policy wordings this year to exclude claims linked to COVID-19.
The underwriting room is typically used by around 5,000 insurance workers each day, with syndicates each having desks, known as boxes, from which they make their deals.
Until recently, all business in the 330-year-old market has been done in person, via paper slips. But management announced a modernization plan in 2015, introducing electronic placement technology, known as PPL.
Before the pandemic struck, Lloyd's had set a goal for 80% of its business to be conducted using the system in the first quarter of the year. The corporation advised all market participants during the first lockdown to use PPL or email for placing risks.
Fitch Ratings warned in April that the loss of face-to-face trading would significantly disrupt business in the market.
--Editing by Ed Harris.
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