National Underwriter online – Property Casualty 360 – Demystifying Lloyd’s of London
While everyone in the U.S. insurance space knows the Lloyd’s of London name—indeed, it’s one of the world’s oldest and best-known corporate brands—this awareness by no means translates into understanding—or business. A large swathe of U.S. producers have never engaged with Lloyd’s on the (often incorrect) assumption that it’s not a good fit for their placements.
Here are five commonly held misperceptions among U.S. producers about Lloyd’s. The reality might not only be surprising—it could prompt more to look to London as a possible home for their clients’ risks.
Misconception No. 2: Lloyd’s only handles oversized and extreme risks
Reality: According to Mary Hughes, president of construction and energy at Lloyd’s underwriter ProSight Specialty Insurance, “there is a commonly held belief that Lloyd’s syndicates only insure very large or highly unusual types of risks,” such as offshore oil rigs or celebrity body parts.
In fact, notes David Wheal, managing director of North America for RFIB, a leading Lloyd’s broker: “While Lloyd’s can and does handle the more specialist risks, there is a strong appetite for mainstream business, albeit with an ES flavor—that is where wind, quake, flood, hail, etc. are the significant perils. Without doubt, Lloyd’s underwriters are way ahead of the curve when it comes to assessing and managing catastrophe exposures.”
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