The London insurance market released an estimate of its share of the estimated $20bn total industry loss
Lloyd’s is liable for US$2.22bn (£1.4bn) of net claims from the devastating floods in Thailand last year.
This is Lloyd’s first calculation of their liability for the damage. The review was made using market share analysis, a review of contracts in place and estimates from each of its syndicates.
Combined estimates from other insurance groups such as Munich Re and Swiss Re have already announced an overall industry loss of US$ 15-20bn.
Lloyd’s said their calculations had taken longer because the sheer scale of the event would leave loss adjusters thinly stretched on the ground. The floods had begun last July and only subsided in December.
Lloyd’s Chief Executive Richard Ward commented: “As ever, our priority remains to assess and settle valid claims as swiftly as we can so the community and businesses in Thailand recover.”
“The Lloyd’s market is as well capitalised as it has ever been. While claims from Thailand could still evolve over time, paying these claims is within the normal course of business for Lloyd’s.”
Lloyds said that as additional information emerges, their actual net claims may vary from this preliminary estimate. The events are not expected to give rise to either any material claims on the central fund or to any material change in the overall level of capitalisation of the market.
This is part of a dark year for the insurance industry.Total catastrophe claims for 2011 reached $108bn, making it the industry’s second-costliest natural disaster year ever recorded, according to Swiss Re.
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