Lloyd’s issue not complex: Ed
Lloyd’s may appear to be leading the way on championing underwriting discipline, but all re/insurers should charge an appropriate price and also be disciplined on the terms and conditions they offer, Robert Wildbore, director of reinsurance at Ed Broking, told Baden-Baden Today.
“As the market has continued to soften, the old adage is ever true: it’s one thing to flex on price, but it’s another to flex on terms and conditions,” said Wildbore
He suggested that the market is split on the situation at Lloyd’s—some see it as a problem, others as inevitable.
“Some people are getting growth signed off, which is positive; others are being closed down. This is what a global marketplace is all about. It inflects; it will respond.”
Commenting on pricing, he said reinsurers acknowledge there is the capacity to encourage some softening—and that reinsurers are not suggesting otherwise.
“At the same time, they are citing the losses and are trying to mitigate and manage expectations. Within all of that there are no real hard messages, which is a sign of a robust industry,” Wildbore said.
He added that he is optimistic about Lloyd’s which, he stresses, has made it very clear that it is open for business—in terms of both the profitability review and the upcoming departure of the UK from the EU.
“My glass is always more than half full. 2017 demonstrated the sector was strong and responded well on behalf of its clients. It remains competitive and grew into 2018.
“If at the end of 2018 investors are disappointed they can respond to it by adjusting pricing. If the returns are satisfactory, the status quo will be maintained,” said Wildbore.
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