Global News - Lloyd's syndicates commit US$400 mln capacity to help developing nations
Source: Middle East Insurance Review | Jan 2016
Eight Lloyd’s syndicates are teaming up to provide their specialist underwriting skills and US$400 million of capacity to help developing economies build resilience against natural catastrophes. They also aim to develop new solutions to combat underinsurance.
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, Lloyd’s said in a statement.
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, as well as to engage with governments, municipalities, and non-governmental organisations, in addition to Lloyd’s usual client base.
Emerging economies across Latin America, Africa, and Asia currently contribute 40% to global GDP, but represent only 16% of global insurance premiums, according to Lloyd’s. In the event of a natural catastrophe, this level of underinsurance can damage growth and hamper economic development.