29 November 2017Insurance

Lloyd's pays $1.7bn of $4.8bn claims commitment for HIM losses

The Lloyd's market has now paid $1.7 billion in claims for hurricanes Harvey, Irma and Maria (HIM).

Lloyd's has estimated a total commitment of $4.8 billion for the three storms earlier in the year.

Within just five days of agreement, Lloyd's brokers are receiving money from Lloyd's managing agents so they can pay policyholders promptly.

“As a market that’s been trading for 328 years, Lloyd’s understands the importance of honouring its promise to pay. This has always been the foundation of Lloyd’s trusted reputation. With total net financial resources of £28bn the market stands ready to support policyholders when they need us most," says Lloyd's CEO Inga Beale.

“As well as helping businesses reopen their doors, claims from the Lloyd’s market serve all manner of different purposes, such as restoring vital public services like power, so people can heat their homes, or clearing roads, railways and airstrips, so commerce can be restored or vital aid delivered to those in need. Claims payments might also go towards repairing boats so fishermen can get back to sea, or mending machinery so farmers can re sow their fields. All of this helps local communities get back up and running again as quickly as possible.”

This announcements come out as Lloyd's launches a campaign to highlight the market's claims paying record.

Over the past five years, the Lloyd's market has paid out $85 billion in claims, an average of $43 million per day paid to policyholders around the world.

Vincent Vandendael, chief commercial officer, commented: “For too long we have not made the most of our claims service, which is one of our greatest attributes, with global reach, high service standards, financial security and focus on the policyholder.

“Whether offering advice to mitigate risks, creating insurance policies that cater for new risks or honouring our promise to pay claims to help people get back on their feet after disaster strikes, insurers have a crucial role to play. It’s time they shouted this story from the rooftops.”

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More on this story

28 November 2017   The sector outlook for London Market insurance remains negative for 2018, reflecting the expectation that underwriting results are likely to stay pressured despite anticipated improvements in pricing conditions, according to a Fitch Ratings report.
6 December 2017   The US Federal Emergency Management Agency (FEMA) is submitting a claim to recover the full $1.042 billion in reinsurance coverage under its 2017 Reinsurance Program.
19 December 2017   The Lloyd’s market has received approximately £3 billion of additional capital to restore capital resources to the level prior to the third quarter of 2017 loss events and to cover changes in capital requirements for 2018 underwriting.