Lloyd’s CUO Turk on changing perceptions at Lloyd’s and improving coverholder supervision

Rachel Turk, chief underwriting officer (CUO) at Lloyd’s of London, spoke to GR at the recent InsTech Exponential Risk event in London, where she was a keynote speaker.

Turk (pictured) addressed changing perceptions of Lloyd’s, evolving performance management, and how the market is positioning itself for the future.

Reflecting on how Lloyd’s is seen externally, Turk acknowledged lingering stereotypes that still exist about the City of London re/insurance market’s culture and agility.

She was initially cautious when approached by outgoing CEO John Neal about taking the CUO role at Lloyd’s, because it would mean working for the market rather than an individual carrier like Beazley, where she was CUO previously.

She laughed at the memory but noted the seriousness of Neal’s response: “‘That’s the challenge, and that’s why I need to hire you. Because if I hire you, you will be able to attract people of the right calibre and outlook,’” she remembered him saying.

For Turk, senior leadership change at Lloyd’s is part of the transformation. “It’s about demonstrating that Lloyd’s is a dynamic, performance-driven marketplace that is commercially attractive,” she said. “We are aware that there has been a perception issue, and I think that’s already changing.”

Adapting Performance Management

With the turn of the market cycle, there is increasing pressure on pricing adequacy and performance, but Turk remains firm that Lloyd’s oversight approach is well-equipped for this environment.

“What we’ve set up in Lloyd’s over the last few years with the principles-based oversight framework allows us to truly differentiate based on ability and capability,” she explained. “Previously, everyone was held to the same minimum standards. Now, we can push the best performers and constrain the lower performers more effectively.”

She also noted that market participants have improved in managing their portfolios, reducing the need for direct intervention. “Nobody wants Lloyd’s to have to get back into a world where we’re doing performance management on behalf of the market. That would be a terrible place for us to be.”

Instead, Lloyd’s is fostering “much more dynamic conversations” about cycle management, capital allocation, and rate adequacy, she observed.

“It’s about saying, talk to me about your cycle management. Talk to me about how you’re allocating capital between classes. Talk to me about what metrics you use,” she said. “It’s no longer a box-ticking exercise, but rather a process that genuinely drives better outcomes.”

Leadership and the Future of Lloyd’s

Turk’s transition from underwriting to an executive leadership role has given her a new perspective on leadership, influence and decision-making.

“When I was underwriting, I was an expert in one line of business. But when I moved into group roles at Beazley, suddenly I had to look at all these business plans across different classes,” she said.

“Now at Lloyd’s, it’s even broader. I have eight different teams reporting to me, from exposure management to outreach insurance. I don’t need to be an expert in everything, but I need to know enough to take a holistic view and make the right calls.”

This shift from subject-matter expertise to strategic leadership is a challenge that that many executives must navigate. “There comes a point in your career where you have to be comfortable not knowing everything and instead focus on surrounding yourself with the right people,” she explained.

“I rely on my teams to be good leaders in their own right, to tell me what I need to know, and to challenge my thinking when necessary,” Turk added.

On the broader attractiveness of Lloyd’s, Turk pointed to structural changes that have made the market more appealing.

“We’ve simplified our charging structures, so businesses coming into Lloyd’s better understand how much it will cost to operate here. The days of wading through 20 pages of fee schedules are gone. That kind of transparency makes Lloyd’s a much more attractive place to do business,” she said.

MGAs in the spotlight

Conversation turned to delegated underwriting of managing general agents (MGAs), also known as coverholders at Lloyd’s.

Coverholder relationships have been an area of concern in the past, with supervision of managing general agents (MGAs) not always viewed as adequate.

“I think delegated arrangements are in a much better state now than they were five or six years ago, but there is still work to do,” she acknowledged.

“One red flag for us is when different managing agents have wildly different loss ratio expectations for the same coverholder. If one thinks it’s a 70% loss ratio and another thinks it’s 50%, that’s a problem. It means someone isn’t seeing the full picture.”

She also pointed out that real-time data remains a challenge. “We are in 2025, and yet some companies still don’t have live data coming in from their coverholders. That’s just not acceptable anymore,” she said.

“If you’re getting data three months after the fact and then spending another month cleansing it, you’re five months behind. That’s too slow for effective performance management,” Turk continued.

Despite some challenges, she is optimistic about the future.

“Lloyd’s is a valuable channel in a multi-platform insurer’s arsenal, and there are still insurers out there that don’t have a Lloyd’s presence yet. That’s an opportunity for growth,” she said, referring to the recent example of Convex, a new re/insurance entrant in 2025.

She added: “When it comes to innovation, Lloyd’s should be the preeminent platform for launching new businesses; the syndication benefits and capital structuring advantages are huge.”