Lloyd’s is said to be in the early stages of exploring using insurance-linked securities (ILS) protection to provide cover for its Central Guarantee Fund. Lloyd’s CEO Inga Beale first raised the possibility that it would use the new London ILS framework to buy protection at the Corporation level during the September Rendez-Vous in Monte Carlo last year.
New Security Risks Product
In an uncertain political and security climate, businesses all face exposures to a litany of risks. People-focused terrorism, cyber-attack, criminal impunity, political violence and instability globally make it extremely challenging for businesses to mitigate these perils in a cost-effective yet uncompromised manner. Duty of care to your employees and families, business continuity, crisis and threat resilience are all critical ingredients to any successful business operating model and therefore why not consider one easy, streamlined security solution which addresses the major concerns?
JLT have created a cutting edge Security Risks product which offers access to the world’s leading and most experienced security advisors to assist in the investigations, analysis and crisis response to any given security incident or threat globally. This service includes the essential ability to trigger cover ‘on imminent threat or suspicion of’ an event. This means that policyholders will be able to call upon this policy before an event actually takes place to try and eliminate and/or mitigate the impact of the potential event. This immediately reduces business down-time in dealing with the crisis, eliminates reputational and litigation risks, and avoids potential insurance claims across a client’s insurance portfolio. If you wish to find out more about this new product, please either contact our Security Risks (Kidnap & Ransom) team or look out for our ‘Focus-on’ article in our next newsletter (July).
Pool Re the UK state-backed mutual terrorism reinsurer is in talks with brokers who responded to their recent RFP about issuing a ground-breaking insurance linked security (ILS) that will provide cover for terrorism losses including cyber coverage. According to a report from re-Insurance.com, no further details are revealed but it is suggested cover will be an indemnity based ILS product.
According to the report if Pool Re is successful, it would be an advance in the evolution of ILS securities, which are still dominated by natural catastrophe perils such as losses from North Atlantic hurricanes and (again according to the report) there has been no ILS that encompasses losses caused by acts of terrorism, both traditional and the more modern-threat of cyber-terrorism.
Oil Insurance Limited (the Bermuda based Energy industry mutual) has declared a dividend for the 5th straight year. An aggregate dividend of USD 450 million was announced at their March Annual General Meeting.
Global Special Risks (GSR) Houston, now have a land rig facility, aimed at North American business and placed 100% in Lloyd’s, which they are able to bind business under direct from their US offices without referral. This complements their ‘Upstream’ and ‘Wellsure’ E&P facilities which are also underwritten in GSR’s offices. For further details please contact Steve England at GSR (Steve.England@GSRUM.com).
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If you require any further information, please contact John Cooper, Managing Director on +44 (0)20 7466 6510 or email firstname.lastname@example.org.