Insurers are busy quoting and running after Apr 1 renewals in
Commercial business ~ for many 31.3 would mark the Year closing and soon, the
financial results / the performance would be out .. miles away, Lloyd's of London has reported a
second consecutive year of losses after a series of natural disasters including
hurricanes Florence and Michael and the deadly California wildfires.The
insurance market reported a £1bn loss, halving its 2017 loss of £2.1bn. Chief
executive John Neal vowed to turn around the market, saying this year would see
an improved performance.
Following
a volatile investment environment and another costly year for natural
catastrophes in which the market paid £19.7bn in claims (gross of reinsurance),
Lloyd’s has reported an aggregated
market loss of £1.0bn for 2018 (2017: loss of £2.0bn).
The
key figures reported in Lloyd’s Annual Report 2018 are:
• Aggregated market loss of £1.0bn
(2017: Loss of £2.0bn)
• Gross written premiums of £35.5bn
(2017: £33.6bn)
• Net incurred claims of £16.4bn (2017:
£18.3bn)
• Net investment return of £0.5bn (2017:
£1.8bn)
• Combined ratio of 104.5% (2017:
114.0%)
Last
year saw several large natural catastrophes, including hurricanes Florence and
Michael, Typhoon Jebi in Japan, as well as the Californian wildfires. These
disasters led to major claims costing the Lloyd’s market £2.9bn, significantly
higher than the long-term average (£1.9bn), which contributed to a combined
ratio of 104.5% in 2018.
Lloyd's
of London is not an insurance company. Rather, it is a marketplace where
insurance buyers and sellers come together. Lloyd's began as a coffee house in
the 1600s. Ship captains, vessel owners, traders and others interested in
shipping gathered at the coffee house to buy or sell what is now called ocean
cargo insurance. These days, brokers and underwriters convene at the Lloyd's
office building on Lime Street in East Central London. Lloyd's is now a major
hub for buying and selling a variety of coverages, not just marine insurance.
The
figures come a day after Lloyd's announced a plan to tackle an
"entrenched" culture of sexism.Lloyd's of London, generally known
simply as Lloyd's, is an insurance and reinsurance market located in London,
United Kingdom. Unlike most of its competitors in the industry, it is not an
insurance company; rather, Lloyd's is a corporate body governed by the Lloyd's
Act 1871 and subsequent Acts of Parliament and operates as a
partially-mutualised marketplace within which multiple financial backers,
grouped in syndicates, come together to pool and spread risk. These
underwriters, or "members", are a collection of both corporations and
private individuals, the latter being traditionally known as "Names".
The
business underwritten at Lloyd's is predominantly general insurance and reinsurance,
although a small number of syndicates write term life assurance. The market has
its roots in marine insurance and was founded by Edward Lloyd at his coffee
house on Tower Street in c. 1686. Today, it has a dedicated building on Lime
Street within which business is transacted at each syndicate's "box"
in the underwriting "Room", with the insurance policy documentation
being known traditionally as a "slip".
The
Lloyd's marketplace involves five key participants. These include the
syndicates, managing agents, brokers, cover holders, and insurance buyers. The
syndicates are the backbone of the Lloyd's marketplace. A syndicate functions
like a little insurance company, assuming risks and paying claims. Managing
agents work on behalf of syndicates, overseeing their day-to-day business
affairs. Insurance brokers act as
intermediaries between insurance buyers and syndicates. While most of the
business underwritten by syndicates is generated by brokers, some comes from
cover holders. Most small business owners
can obtain the insurance coverages they need from "regular" insurers.
Nevertheless, some businesses may present unusual or risky exposures that
traditional insurers don't want to insure. Examples are roofing companies,
sky-diving operators, and long-haul trucking firms. Lloyd's syndicates may
insure such risks.
It
is claimed that the disasters globally have affected the financial performance
of Lloyds with major claims costing the Lloyd's market £2.9bn. Research has
suggested increased temperatures due to
global warming could mean more huge blazes in future. There could also be an
increase in the intensity of hurricanes.But the group said annual results
showed "green shoots of improvement", with insurance prices rising by
3.2%.Lloyd's said it aimed to cut the costs of doing business at Lloyd's and
encourage new types of capital onto the Lloyd's platform.
The
results came after Lloyd's pledged to bring in new measures after reports of a
pervasive culture of sexual harassment at the insurance market. Last week, women
told Bloomberg and the Independent they were "leered" and
"letched" at and judged on their looks.Lloyd's, where hundreds of
brokers and insurers meet to do business, was accused by Bloomberg Businessweek
of being "the most archaic corner left in global finance".Lloyd's of
London has now announced a plan to tackle sexual harassment after reports that
female employees face an "entrenched" culture of sexism at the
insurance market.Among other things, the City firm said it would provide a
confidential channel for women to report bad behaviour. The magazine had stated
that it had spoken with 18 women who
described an atmosphere of near-persistent harassment - ranging from
inappropriate remarks to unwanted touching and sexual assault.The Independent
followed up with a similar report, claiming that women who work at the iconic
Lloyd's of London building, in Lime Street, were abused and attacked by male
bosses but did not feel able to speak out due to fears of retribution.
Lloyd's,
which was run by a woman, Dame Inga Beale, from 2014-2018, has encouraged the
women quoted in media reports to share their allegations with the firm in a
"safe and confidential" space.As part of its plan it hopes to
increase reporting of sexism across the 331-year old market.The firm said that
where individuals had a case to answer, they would be punished and could be be
banned for life from entering the Lloyd's building.
With
regards – S. Sampathkumar
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