Eight Lloyd’s syndicates have committed $400 million towards solutions to address natural catastrophe risks in emerging and developing economies.
The initial group of participants are Amlin, Beazley, Hiscox, Mitsui Sumitomo Insurance Group, Nephila, RenaissanceRe Syndicate Management, Tokio Marine Kiln and XL Catlin.
Other managing agencies are welcome to join the initiative which will focus on developing new solutions to help developing economies tackle underinsurance and improve their resilience against the economic impact of natural catastrophes.
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. The group also plans to engage with governments, municipalities, and non-governmental organisations, in addition to Lloyd’s usual client base.
According to Lloyd’s, 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.”
Lloyd's, Amlin, Tom Bolt, London, Europe, Bermuda