(Bloomberg) Lloyd?s of London, the world?s biggest insurance market, is developing a three-year plan to make itself a more ?affordable? place to trade and prevent rival regions such as Bermuda from gaining market share.

The plan will target reducing the costs of operating at Lloyd?s and make it easier to access the market, Julian James, director of worldwide markets, said in an e-mailed statement.

?It is easy for capital to move to other markets, either in London, elsewhere in Europe or further afield,? James said. ?In this heady environment, no one has a God-given right to exist.?

Insurers, including Hiscox Plc. and Amlin Plc., which also trade at Lloyd?s, are raising billions of dollars to operate reinsurance businesses in Bermuda to take advantage of rising premium rates spurred by record US hurricane losses.

Bermuda offers a market that charges no corporate tax and is more loosely regulated than the UK.

Lloyd?s of London Chief Executive Officer Nick Prettejohn, 45, who leaves at the end of the year, has said Lloyd?s has the highest costs in the insurance industry, partly because of its reliance on paper-based processing.

James, 42, is viewed by some analysts as a potential successor to Prettejohn, who will become head of the UK unit of Prudential Plc. in January.

Further details about the three-year plan, which includes improvements in distribution, will be provided in 2006, James said.