Lloyd’s syndicates unite to tackle underinsurance

Eight Lloyd’s syndicates have joined forces to develop new solutions to help developing economies tackle underinsurance and improve their resilience against the economic impact of natural catastrophes.

The syndicates have committed capacity of $400 million towards solutions that address natural catastrophe risks in emerging and developing economies.

The initial group of Lloyd’s syndicates participating in this new initiative are managed by Amlin, Beazley, Hiscox, Mitsui Sumitomo Insurance Group, Nephila, RenaissanceRe Syndicate Management, Tokio Marine Kiln and XL Catlin.  However, membership is open to the entire Lloyd’s market and other managing agencies are welcome to participate.

The group has issued an open invitation to work with international organisations including, but not limited to, the World Bank and the British Government’s Department for International Development.

It will also look to strengthen its existing ties with several current global initiatives, such as the Insurance Development Forum created by the International Insurance Society.

Lloyd’s said that the group also plans to engage with governments, municipalities, and non-governmental organisations, in addition to Lloyd’s usual client base.

Lloyd’s explained that emerging economies across Latin America, Africa, and Asia currently contribute 40 percent to global GDP, yet represent only 16 percent of global insurance premiums.

“In the event of a natural catastrophe, this level of underinsurance can damage growth and hamper economic development,” said Lloyd’s.

Tom Bolt, director of performance management at Lloyd’s, added: “This collective initiative means the Lloyd’s market can help provide the insurance solutions needed to build resilience to natural hazards and promote risk awareness around the world.

“We are keen to work closely with organisations across the globe to help protect economic growth in developing countries.”