Despite many difficulties establishing the initial cause of loss for the damaged buildings, the majority of insurance claims were honoured. It’s estimated that 80% of claims were paid with Lloyd’s leading the way. Martin Emkes, Managing Director, Global Business Solutions at broker Heath Lambert (which evolved from the business founded by Cuthbert Heath in 1877), says that until 1906 the placement of insurance risks overseas was viewed with some wariness. “But Heath realised that the San Francisco event was of such magnitude that the performance of insurers would be watched carefully and he genuinely believed that insurance was effected precisely to deal with an event such as this.”
He continues: “To this day, ability and willingness to pay claims remain a basic determinant of where clients choose to place their business.” Lloyd’s reputation for paying claims has been tested many times since 1906. Lloyd’s played an integral part in rebuilding the US after Hurricane Andrew in 1992, and more recently helped the US back to its feet after the terrorist attack of 9/11 and the hurricanes of 2005.
