Lloyd's [4] of London has recorded a loss for the second time, consecutively. Despite an increase of 5.6% of turnover reaching 35.5 billion GBP (45.05 billion USD), the company undergoes a deficit as pre-tax hits 1 billion GBP (1.3 billion USD). The combined ratio wins 9.5 points from 114% in 2017 to 104.5% in 2018.
The series of natural catastrophes that struck the US (fire in California, Hurricane Florence and Hurricane Michael) along with the typhoon Jebi in Japan have caused a significant loss experience of 2.9 billion GBP (3.68 billion USD).
This number largely exceeds the average of the long-term loss experience which reached 1.9 billion GBP (2,41 billion USD) per year.
In order to improve its results, Lloyd's urges to:
- Delete some poorly profitable activities of 3 billion GBP (4 billion USD).
- Make an average increase in tariffs of 3.2 % for the entirety of the portfolio.
- Accelerate the digitization of insurance contracts to reach a ceiling of 80% in the upcoming 12 months.
For the record, Lloyd's has set up an electronic system of the insurance contract management since 2016.
Read also | Lloyd's of London could exclude brokers who do not go digital [5]