The specialist Lloyd’s of London insurance and reinsurance marketplace has now paid out $738 million in response to the impacts of Hurricanes Harvey, Irma, and Maria.
Lloyd’s announced previously that it expects losses from just hurricanes Harvey and Irma to reach $4.5 billion, as it continues to assess the hit to the market from hurricane Maria.
Chief Executive Officer (CEO) of Lloyd’s, Inga Beale, said; “It is heartening to see the Lloyd’s market swing into action in this way. As the UN marks International Day for Disaster Reduction, these events serve as a stark reminder of our duty and ability to assist people, businesses and governments when disaster strikes. We must continue to be mindful of the difficult circumstances that policyholders find themselves in and do everything in our power to pay claims as quickly as possible.”
The Lloyd’s market has revealed that it’s been working with the Insurance Charitable Foundation to transfer $25,000 to the Hurricane Harvey Disaster Relief Fund, and that it donated $25,000 to the British Red Cross relief efforts in Antigua and Barbuda.
John Hancock, Lloyd’s Performance Management Director, added; “When you get three catastrophic weather events as well as earthquakes in Mexico and flooding in Asia all happening so close to each other, it’s essential to make sure the market’s claims response moves as quickly as possible to help people rebuild their lives.
“Lloyd’s is living up to its reputation for paying claims quickly. We have made advance payments on a range of reinsurance programmes for local insurers to make sure they have the funds to pay claims locally – both in Texas and the Caribbean. Lloyd’s has also made advance insurance payments to businesses so that they have funds to kick start re-builds and get back on their feet.
“In one case Lloyd’s advanced tens of millions of dollars to a Florida Keys hotel chain within days of it suffering severe storm damage. This has enabled that business to begin repairs so that it can resume business as quickly as possible. Imagine what a relief that is for this company trying to get their business up and running again.”
It remains unclear exactly what the impact to the Lloyd’s market will be from the string of catastrophe events in the third-quarter, but some industry analysts have suggested Lloyd’s is likely to fall to an overall loss in 2017, as a result of the events.
Furthermore, ratings agency S&P recently announced that it has revised its outlook for Lloyd’s to negative, in light of recent catastrophe events.
