Insurance centre starts up with pounds 2.5bn target
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE TROUBLED Lloyd's of London faces a new competitive threat today with the opening of the London Underwriting Centre, a powerful new insurance market that expects to take pounds 2.5bn worth of insurance premiums in its first year of operation.
The combined capital and surplus of the 22 participants in the LUC totals about pounds 6bn, compared with Lloyd's current capacity of pounds 8.8bn and possible capacity next year of pounds 7.5bn.
The new centre has enough resources to underwrite pounds 18bn worth of premiums.
In spite of the new market's formation, backed by some of the London market's most influential insurance companies, Lloyd's is in talks with the LUC to set up a combined back-room bureau, which would provide administrative services for the general or non-marine insurance market.
'At the moment we both have our own bureaux. Why shouldn't we have one which serves both markets?' said Victor Blake, chairman of the new centre. 'The new bureau would do the same function for Lloyd's as it does for the companies.'
The two markets will collaborate on cost savings in administration but compete with each other for business.
The bulk of business initially handled by the new centre will be general insurance, although some participants will be insuring marine and aviation risks. Many of the companies operating there will be trading in reinsurance business, taking on liabilities that other insurers do not wish to retain.
(Photograph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments