Lloyd’s partners with Singapore to build cat resilience in Asia

Lloyd’s has signed a statement of intent with the British Government and the Monetary Authority of Singapore to support the growth of Asian insurance markets.

Yesterday, the signatories committed to a series of initiatives to build natural catastrophe resilience across Asia by aiding the understanding of risk exposures in the region.

“Asia is the world's most natural catastrophe-prone region. However, on average, less than 5 percent of likely economic losses are insured when disaster strikes. This means that one major catastrophe could wipe out decades of economic progress,” said Lloyd’s.

The parties also hope the partnership will help to identify threats facing regional economies and support the development of new risk transfer solutions.

David Cameron, UK Prime Minister, said: “As a world leading insurance provider, Lloyd’s plays an important role in protecting millions of people in the region from the financial losses of natural disasters.

“The agreement with Singapore will put Lloyd’s at the forefront of the Asian insurance market and shows how governments can work together with industry to provide a vital product. Lloyd’s ensures countries across Asia are protected which helps to safeguard their economic success.”

John Nelson, chairman of Lloyd’s, added: “There is no doubting the value of open insurance and reinsurance markets. They diversify risk globally, underpin all aspects of economic growth and ensure that countries hit by catastrophes can rapidly recover.

He explained that Lloyd’s has developed its largest concentration of underwriting and risk management expertise outside of London in Singapore and it wants to use that to support the development of insurance markets across Asia.

Ravi Menon, managing director of the Monetary Authority of Singapore, said: “Asia is especially vulnerable to the threat of natural disasters. The human and economic costs of these disasters are large and increasing while the proportion of these risks that is insured is worryingly small.

“The Monetary Authority of Singapore is committed to partner insurers operating in Asia to better understand these risks, develop effective insurance solutions, and facilitate cross-border access to specialist insurance services, so as to strengthen Asia’s resilience to large natural catastrophes.”

Lloyd’s has invited other firms in the insurance industry across Asia to join the commitment and sign the statement.