Lloyd’s Deputy Chairman, John Coldman, addressing the Italian Lloyd’s Correspondent’s Association on Friday (before the blackout) in Milan, highlighted the growing opportunities presented by the expansion of the European Union, but also warned that the ever changing nature of the risk environment requires special attention.
Citing the increasing severity of storms, floods and other weather events in the U.K., Europe and across the world, Coldman indicated that “The trends are clear, as is the lesson for the insurance industry. We have gravely underestimated the potential of such events and need to look closely again at our modeling tools and our approach to the underwriting and pricing of risk.”
In addition to his role as Deputy Chairman of Lloyd’s, Coldman is also the Chairman of Benfield, and is in close touch with developments in Europe. He told delegates that “there is no doubt that this is an exciting time to be doing business in Europe. With so much change taking place in the various domestic markets, demand for the expertise of London brokers and underwriters has increased significantly.”
He also noted that the “European market place is growing fast. By next year, the EU will consist of 25 nations, with a GDP of $30 trillion [citation], presenting all of us with further opportunities for business development.”
His speech discussed three vital roles the industry plays in society: “Insurance as the rebuilder of the economy; Insurance as an enabler; and Insurance as a solution to increasing personal and corporate liability.” He emphasized the importance of the industry, and the dedication its members, Lloyd’s in particular, have in meeting the new challenges.
“Today’s changing business culture, social and political trends, governance trends, and technological change all require creative risk solutions. Our approach must be flexible enough to handle the challenges that emerge, and we must be innovative enough to be able to anticipate and respond to these demands,” he concluded.
The full text of Mr. Coldman’s speech is available on the Lloyd’s Web site at: www.lloyds.com.
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