The Lloyd’s market’s ability to absorb losses from Hurricane Ian demonstrates just how far the market has come over the last five years in getting to grip with cat exposures.
For Lloyd’s, Ian was a 1-in-10 gross loss and a 1-in-7 net US wind event, with binders making up less than a third of the initial estimate.
With planned property premium for 2023 of £18 bn, now is the time to take advantage of hardening rates in property catastrophe re/insurance.
Lloyd’s insurance market have headroom in cat appetite to grow the book sensibly and stand ready to respond at speed to well considered submissions. Plans that are unrealistic or cherry picking to cure a capital problem will take an awful lot longer to process.
Market has “headroom” to grow its cat appetite and syndicates with ’capacity, capability and expertise’ should take advantage
The confluence of high inflation, rising interest rates, elevated catastrophe losses and uncertain capital flows had created headwinds that were without recent precedent, presenting both opportunities and challenges as we move towards the 1 January renewals and beyond.
by Yana Keller