(Bloomberg) ? Lloyd?s of London, the 320 year-old insurance market, expects an increase in the number of insurance units know as ?syndicates? by the end of this year because they can now be created in weeks rather than months.

?If you take too long, you lose out,? said Chairman Peter Levene, 64, in an interview at the Monte Carlo Reinsurance conference. ?We are not looking to explode, but are looking for quality.?

Lloyd?s is implementing a three-year plan to cut costs for insurers and prevent competitors gaining market share. Hiscox Plc, Amlin Plc and other insurers have raised billions of dollars for reinsurance units in Bermuda to take advantage of zero corporate tax and lighter regulations than in the UK.

Levene said the UK government should lower taxes for insurers in the London market, where the rate is set at about 30 percent. A decision may be made in the next 18 months, he said.

Reinsurance rates have more than doubled for coverage in areas hit by storms last year. They may now drop as a benign hurricane season and higher prices encourages more supply. ?People need to keep their cool and behave sensibly,? Levene said, when asked if he anticipated a surge in coverage next year. ?They have to look at the bottom line and not the top line.?

Lloyd?s, which began as a place where merchants, ship owners and captains exchanged shipping news, now has member syndicates that insure everything from satellites, art and jewellery to commercial buildings and airplanes.

Lloyd?s in April posted a pretax loss of ?103 million ($192 million), its first loss since 2001, after last year?s storms battered oil rigs, ships and towns along the US Gulf coast. Lloyd?s had losses of 3.3 billion pounds from the hurricanes.

Lloyd?s named Richard Ward, 49, as chief executive officer in March to replace Nick Prettejohn, who left to head Prudential Plc?s UK business.

Ward?s role in establishing electronic trading at the International Petroleum Exchange will help modernise underwriting at Lloyd?s. Lloyd?s transports about four tons of paper a day to another office as part of its processing.