Local market appetite poses challenge to Lloyd’s London players
One of the key challenges presented by the Latin American market is the increase in local market appetite and capacity for risks that were traditionally coming through to Lloyd’s in London. That is the view of Rupert Taylor, head of general liability and multi-line product development for Marketform.
“Many of these risks are remaining in the local market. Additionally, as these markets continue to develop rapidly, the culture around legal reforms and the development of claims will also change,” he said.
“As we have seen in other fast developing markets, these changes traditionally have led to an increased exposure in the frequency and size of claims.”
Opportunities lie in trying to harness different areas of the market, Taylor continued. Having coverholder positions in a territory is fairly well established in Commonwealth countries although this is seen less frequently in Latin American markets. This has been observed more with recent coverholder approvals from Lloyd’s in Mexico and Argentina.
“There is an opportunity to open up and harness the small and medium-sized enterprise--type business through coverholder arrangements which could open the door to larger open market business,” he said.
“The other main opportunity is in new product development. We see opportunities with exciting new products such as environmental impairment liability (EIL) and miner recovery insurance as well as the more traditional products such as directors & officers (D&O) and professional indemnity (PI). We are hoping to increase business flows from our enhanced product range, while working in conjunction with the local market.”
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