6th December 2023
-Lloyd’s announced a new collaboration with Moody’s Analytics to develop a solution that will help to quantify greenhouse gas(GHG) emissions across managing agents’ underwriting and investment portfolios-the solution being adopted will aid managing agents in meeting expected regulatory reporting requirements.
-The Lloyd’s Market Association(LMA) released an updated managing agent Blueprint Two Playbook-the Playbook has been created to provide managing agents with the tools and knowledge required to implement the Blueprint Two market transformation initiatives.
-Business and insurance-sector leaders are concerned about the prospect of a large-scale, systemic cyber attack—a ‘cyber catastrophe’ risk-cyber insurance is an evolving, rapidly growing market but it has never had to deal with such an event, which makes a cyber catastrophe inherently difficult to model and price-the industry is hampered by a lack of tangible scenario data points, inconsistent or non-existent cyber catastrophe claims coding frameworks and an overarching high level of uncertainty.
-The London Market Group launched its report into the role that insurance plays in helping to unlock the potential of net zero projects. Aimed at parliamentarians and other influencers, it aims to showcase the role of the London Market in unlocking, promoting and facilitating the transition to net zero.
-Lloyd’s published a systemic risk scenario that models the global economic impact of a hypothetical but plausible cyber attack on a major financial services payments system, resulting in widespread disruption to global business and potential global economic losses of $3.5tr-the three countries that experience the highest five-year economic loss from the scenario are the US $1.1tr, followed by China $470bn and Japan $200bn. The recovery time for individual countries or regions depends on the structure of their economy, exposure levels and resilience.
-In a report, Gallagher Re summarised the preliminary YTD Q1-Q3 global loss totals:-an active and impactful first three quarters of 2023 resulted in elevated natural catastrophe losses for the globe-total economic losses were estimated at $290bn-2023 is on track to become the sixth year since 2017 to exceed 100bn in annual insured losses. The decadal average (2013-2022) is $112bn which signifies that a $100bn+ year has become a "new normal" for public and private insurance entities-the insurance protection gap highlights how much opportunity exists to better prepare global citizens for natural catastrophe risk. While this opportunity is most urgent in countries with emerging and developing economies, large gaps exist in even the most mature insurance markets with individual perils, detailed in the full report.
-According to a Allianz Commercial report, "Cyber security trends 2023" the latest threats and risk mitigation best practice–before, during and after a hack, the frequency of cyber claims stabilized in 2022, reflecting improved cyber security and risk management actions among insured companies-law enforcement agencies targeting gangs, together with the Ukraine Russia conflict, also helped curtail ransomware activity-however, ransomware activity alone was up 50% year-on-year during the first half of 2023-so-called Ransomware-as-a-Service(RaaS) kits, where prices start from as little as $40, remain a key driver in the frequency of attacks-ransomware gangs are also carrying out more attacks faster, with the average number of days taken to execute one falling from around 60 days in 2019 to four.
-Global commercial insurance prices increased 3% in the third quarter of 2023, the same as the prior quarter, according to the Global Insurance Market Index released by Marsh-the third quarter marks the 24th consecutive quarter of pricing increases-pricing continued to be relatively consistent across almost all regions in Q3. As with Q2, this was driven largely by a continuation of the trend for rate decreases in financial and professional lines and a small decrease for prices in the cyber insurance market-this was offset by property insurance increases, most notably in the US where property prices rose on average by 14%.
-The commitment of funding by the LMA Board and collaboration with key DA brokers and managing agents, reflects the industry's readiness to embrace digital transformation-London Insurance Market Operations & Strategic Sourcing(LIMOSS) will manage the development and provision of CBAA as a market service-Eleven Lloyd’s managing agents have already committed to adoption of the solution, covering 42% of the Lloyd’s DA market-Rob Myers, operations director at the LMA, said: “A computable contract sits at the heart of the DARE vision, and the LMA and LIIBA are committed to working together to realise a more digitally connected marketplace-this initiative represents progress towards a historic milestone in the modernisation of the London Market, and we would urge support from all stakeholders to harness its capabilities to drive growth, enhance operational efficiency and deliver cost savings.”
-Marsh McLennan, in collaboration with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank and DZ Bank, announced the launch of a new facility–Unity–to provide affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports.
-Lloyd’s launched a consultation on its roadmap for insuring the transition-the consultation sets out Lloyd’s proposed approach for the next three years across all areas of sustainability for the market, including underwriting, investments, exposure management and capital and reserving-
the roadmap has been designed to support market participants in evolving and embedding their own sustainability strategies, including navigating evolving regulatory reporting requirements-it also aims to provide greater clarity to all stakeholders on how Lloyd’s will support customers as they respond to a volatile macro-environment, while maintaining decarbonisation and transition progress to support global ambitions to achieve net zero.
London Market Trends(18,703 articles)