headshot-template-11-
22 September 2022Insurance

Lloyd’s plots war games; won’t miss Russia-Ukraine style risks again

Lloyd’s and the London market Association (LMA) will run war games to identify and mitigate more of the type of unexpected aggregations and risk accumulations that have been exposed following Russia’s invasion of Ukraine.

“Lloyds, in conjunction with the LMA, are developing a set of realistic disaster scenarios that will cover risks arising from the geopolitical tensions between China and Taiwan and the ensuing impact on US relations,” Lloyd’s chief of markets Patrick Tiernan (pictured) said during Lloyd’s Q3 market message.

The conflict simulation will come as part of a system of “cross-class scenarios” needed to unearth hidden risk aggregations. “We need to learn the lessons [of the Ukraine war] and be thoughtful of potential steps we can take to bolster the market’s preparedness for emerging risks.”

The China-Taiwan simulation requires urgency, Tiernan indicated.

“This needs to be done on an expedited basis,” he said to justify a Q1 2023 deadline for data collection from syndicates. “We cannot justify delaying this exercise into the second half of next year.”

Beyond geopolitical tensions mimicking the Russian invasion, Lloyd’s exercises will cover the macroeconomic spillovers, Tiernan indicated, citing supply chain disruptions “and other catalysts” on inflation and other forms of economic disruption.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
22 September 2022   Inflation, attachment points and clarity of cover are key to retaining remediation gains.
Insurance
29 September 2022   London market technology vendors representing over 80% of GWP back Blueprint 2.
Insurance
13 October 2022   Apollo expands construction capability following Lloyd’s approval for its 2023 plan.