Risk management – a journey from the merely unlikely to the totally unpredictable Enrico Bertagna Head of Southern, Eastern Europe & Africa General Representative for Italy II Università di Napoli 15 April 2012
WHAT Is lloyd’s?
1400 s 1500 s 1600 s 1700 s 1800 s
Lloyd’s established
1600 s 1700 s 1800 s 1900 s 2000 s
Lloyd’s and Nelson
’s Entrepreneurialism in the 19th Century
1600 s 1700 s 1800 s 2000 s 2010 s
Lloyd’s is a catalyst for Innovation
The motorcar TerrorismAviation Commercial space flight Lloyd’s firsts
Other firsts contract Certainty Reinsurance claims academy
Role of Insurance In society
Lloyd’s insures against natural disasters around the world and its devastating consequences covering everything from injury to property damage Whatever the force of nature
Crucial to society
Imagine a world Without insurance
insurance Is not banking
Insurance is pre-funded Banks lend before they borrow
Standards Franchise structure Risk Management What we learnt
Underwriting discipline
2012 financial results 91,1% Despite claims from superstorm sandy (€ 1,7mld) Profit before tax Combined ratio € 3,41 mld
How the market works
A dynamic and diverse market As at 31 December 2012, the Lloyd’s market was home to 57 managing agents that manage 87 live syndicates. Source: Lloyd’s Annual Report 2012
Market structure Source: Lloyd’s Annual Report 2012 Our unique structure creates a market based on trusted relationships and expertise
The risk
The broker
The underwriters
The capital The policy
Claims paid
The risk The broker The underwriters The capital Claims paid The policy
The world is A Risky place… …insurance Understanding risk
THE SCIENCE OF RISK
Insurance A second pair of eyes
Top 10 Risks
TOP RISKS REGIONALLY
Lowest 10 Risks
The Insurers of the future Security Global Reach foresight
Lloyd’s to be the global centre for specialist insurance and reinsurance Growing premium income from established markets in line with their economic growth with greater growth in new markets.
By 2025 Lloyd’s will be the global centre for specialist insurance and reinsurance A more diversified capital base, with a greater contribution from high growth economies.
By 2025 Lloyd’s will be the global centre for specialist insurance and reinsurance A truly internationalised underwriting community.
By 2025 Lloyd’s will be the global centre for specialist insurance and reinsurance A broker market, utilising brokers’ international networks.
By 2025 Lloyd’s will be the global centre for specialist insurance and reinsurance With powerful overseas hubs in certain major overseas markets.