Lloyds was paying into this pool (even though they will never go insolvent and didn’t need to reinsure since they would have the full capital Lloyd’s network behind them).

I guess they decided that it wasn’t worth all the headaches and administration pains (specifically with in Kentucky since their tax system can’t really be scaled and each City, county, parish has its own individual tax laws).

I joke that Lloyd’s is like a grumpy old english man (been around since 1686 – 334 year old).

That they no longer want to and really don’t need to play with the local bureaucracy and that is why they are pulling out of the “Appointed” destination.

As the article mentions they will still be involved in the re-insurance and the E&S insurance.

Surplus lines is how all Lloyds Flood insurance syndicates are operating and this market isn’t pulling out in fact I think it will grow.

And at some point I think that we will have a Syndicate decided to get the “Appointed” designation again for Flood insurance, however to get this it will need to be with each state. Currently most of our Lloyd’s Syndicates don’t write in Kentucky (which is sad really they could use some help on flood insurance).

And the main reason is because they can’t  scale the tax code system for KY.

They would need to have a team that only worked on that one state and looked up all the local tax codes to make sure they are collecting the correct tax.

Most decided it is not worth it and thus the Ky property owners don’t have many options when it comes to flood insurance.

So the sum of all these sentences is that Lloyds flood Insurance is still around in flood insurance and will be for the distant future and will likely stay on the E&S insurance platform for the most part.

Hope that answers your question if you want to discuss further feel free to give me a call.

Your (grateful that I get to work with you) flood nerd Robert