WHITESPACE SOFTWARE LIMITED

PRESS RELEASE - 21st January 2002

WHITESPACE QUESTIONS BAIN REPORT PROPOSALS

Whitespace Software Limited believe the proposals in the Bain report, which were endorsed by the Council of Lloyd’s last week, will not do anything to improve the profitability of the investors in the Lloyd’s market. The future route for the Lloyd’s market to survive in the 21st century will be to attract more quality underwriting talent to Lloyd’s, cut costs and improve the service offered to buyers of Lloyd’s policies.

 

Jonathan Ling, Finance Director at Whitespace and Lloyd’s Name, says, “Without Names, Lloyd’s would not exist now. Corporate backed syndicates have been consistently poorer performers and have not been shown to have the long term commitment to the market.” He suggests that “most of Lloyd’s problems have been caused by incompetent underwriters. Tougher examinations or higher qualifications would help as would peer group pressure from fellow underwriters. The potential for a very public row between Names and Corporate providers of capital over these proposals can do nothing but harm to the franchise of Lloyd’s.”

 

The Bain report proposals will add to uncertainty in the market and therefore hold up badly needed investment in new IT systems. Already the LMP 2001 plans are delayed and it is clear that they are under funded. Ling says, “LMP has a real chance of radical reform and cost cutting. We applaud its audacity and innovative initiatives. However, it will only work if the Lloyd’s and London Market finance LMP and give regulatory teeth to its proposals. Expecting LMP to work on an unfunded and voluntary basis is hopelessly unrealistic.”

ENDS

 

Notes to Editors:

Whitespace Software Limited is based in central London, and specializes in the development and support of bespoke computer software applications.  These include solutions that use web, database, Windows and traditional console technologies.

Photograph of Jonathan Ling available in black and white from website.

For further information, please contact Jonathan Ling at Whitespace on: 020 7420 0208, or visit the company's website at: http://www.whitespace.co.uk

 

WHITESPACE SOFTWARE LIMITED