Eight Lloyd’s syndicates are joining forces to develop new solutions to help developing economies tackle underinsurance and improve their resilience against the economic impact of natural catastrophes.
Emerging economies across Latin America, Africa, and Asia currently contribute 40 percent to global GDP, yet represent only 16 percent of global insurance premiums, Lloyd’s said, noting that such underinsurance can damage growth and hamper economic development.
As a result, the Lloyd’s syndicates are offering specialist underwriting expertise and insurance capacity of $400 million, based on “well-designed risk sharing initiatives” and risk diversification, Lloyd’s said.
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.
Lloyd’s emphasized that membership is open to the entire Lloyd’s market and other managing agencies are welcome to participate.
The group issued an open invitation to work with international organizations, including the World Bank and the British government’s Department for International Development.
It also intends to work with governments, municipalities, and non-governmental organizations as well as strengthening ties with global initiatives, such as the Insurance Development Forum created by the International Insurance Society, the statement added.
Tom Bolt, director of Performance Management at Lloyd’s, said: “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 organizations across the globe to help protect economic growth in developing countries.”
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