Spring 2014 Bermuda Re/insurance+ILS
World, Markel and Talbot all already have a presence in Singapore, alongside 18 other service companies operating out of the Lloyd’s hub. Lloyd’s will be hoping that its representative office in Rio de Janeiro will be able to gain similar traction.
“Lloyd’s was a bit colonial in the past”, explained Jeremy Brazil,
director of underwriting at Markel International, “but the market has come to accept that the world is changing”. Lloyd’s has recognised that you can’t simply sit and wait for the business to come to London, he said, with the proactive pursuit of business exemplified by the success of hubs such as Singapore. Brazil said that Lloyd’s has traditionally brought specialty lines expertise to local domestic markets, but that as they have grown in sophistication it has become increasingly important to set down roots. “Our goal is to become part of the local furniture, to effectively underwrite business 24/7 and to bring the right people with the appropriate technical and language skills needed to service these markets.” Lloyd’s hubs and global licenses are an important part of that capability.
Skinner said that the ambition of Vision 2025 is to increase the flow
of business making its way to Lloyd’s, and it is apparent that the market is taking an increasingly agnostic approach to where the business that enters the market is sourced. As Robert Korzinek, art and private clients underwriter at Hiscox explained, there is considerable and growing appetite for fine art insurance in markets such as Brazil and China. These are markets where Lloyd’s players have traditionally been underweight, he said, although thanks to its network of licenses there are growing opportunities to extend fine art coverage into such regions. Proximity is important in these markets, said Korzinek, although as with many lines, London is the anchor, test-bed and lead market for fine art risk.
Lloyd’s international network continues to attract the interest of global players. When Markel sought to switch its focus from a US- centric insurer to a global multi-line player, Lloyd’s was regarded as the preeminent place to do so—“one where the licenses and regulation allow you to effectively write business in every corner of the world”, said Brazil. He added that Lloyd’s global network had played an important part in the firm’s transformation.
It is apparent that even without its hubs—and more are mooted— Lloyd’s**
Gross premiums written Net income* Combined ratio
2013 2012 2011 2013 2012 2011 2013 2012 2011
*Results given are before tax **Results are given to one decimal place
£26.1 billion £25.5 billion £23.5 billion £3.2 billion £2.8 billion
-£516 million 86.8 percent 91.1 percent 106.8 percent
Lloyd’s Singapore service companies:
Amlin Argenta Ascot Atrium Beazley Canopius Capita Catlin Chaucer Hardy Kiln Markel Newline QBE Starr Companies Talbot Travelers Watkins Syndicate
“Our goal is to become part of the local furniture, to effectively underwrite business 24/7 and to bring the right people with the appropriate technical and language skills needed to service these markets.”
Lloyd’s network of global licenses is an attractive proposition. As Korzinek explained, Lloyd’s licenses have enabled Hiscox to access “a market that is increasingly international in scope”. With the general shift in insured values inexorably heading eastwards and southwards, it will prove increasingly valuable.
A brand apart
The Lloyd’s brand is a further compelling reason to operate in the market; and one that is well-recognised internationally. Powell cited a recent event organised by Lloyd’s in Brazil as a case in point, during which the London market was recreated in a hotel in Rio de Janeiro, complete with boxes for 15 of the syndicates. He said that the event was well received and was an example of the kind of outreach programme that the market can deliver, helping to strengthen brand and market recognition in emerging territories. Lloyd’s has the resources and brand proposition to market its presence in emerging territories with
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