Lloyd's visits Chile to pledge support

Lloyd’s has reasserted its support for Chile in light of the recent earthquake by sending a second senior delegation to thank the Chilean insurance industry for its assistance and to show Lloyd’s ongoing commitment to the relief effort.

A Lloyd’s claims delegation visited Chile at the end of June to assess the situation first-hand, including how claims payments were progressing. Now, a delegation including Lloyd’s Chairman Lord Levene and Jose Ribeiro, Director, International Markets, has visited the region to further discuss the response to the earthquake.

The team from Lloyd’s spent three days visiting Chile’s major insurance players and key finance figures, including Chile’s Finance Minister, Felipe Larrain Bascunan, with whom they discussed the effects of the quake, reconstruction efforts, total estimated losses and Lloyd’s future in the market.

It is estimated that Lloyd’s exposure to the quake is around UD$1.4bn (net), and Lord Levene stressed that Lloyd’s is on standby to pay out all fair and valid claims as soon as losses are confirmed.

“Like everyone else, we are keen to see the losses processed efficiently and fairly and we want to work closely with our partners in the Chilean insurance industry to ensure that this happens,” he said. “One of the cornerstones of our reputation is that we pay valid claims. Where the terms and conditions of the reinsurance contracts are met, we will pay all the claims. There is no question of our ability to do so, the Lloyd’s market is in good heath, and possesses the capital to meet these claims.

“Chile remains an important reinsurance market for Lloyd’s,” added Jose Ribeiro. “Lloyd's has a long and demonstrable track record in delivering a world class response on catastrophe losses all over the world, and the market has established a response plan through which it is actively working with local insurers in Chile to ensure they have as much support as they need in light of the earthquake.”

The visit also saw the delegation host a lunch seminar for senior figures from the Chilean insurance and reinsurance industry, where they reasserted Lloyd’s commitment to the Chilean market following the earthquake.

“We are keenly aware that our role is to support businesses when they are faced with a disaster. That is why we exist,” Lord Levene told delegates. “I can’t speak for any other reinsurer, but Lloyd’s will certainly continue [in Chile] and I hope most, if not all, others in the market will also continue. However, it should come as no surprise to anyone if the cost of premiums were to increase.

He also thanked those in attendance for helping Lloyd’s response to the quake.

“Many of you will have met the delegation from Lloyd’s who visited last month, once the situation had settled,” he said. “I know that my colleagues found this a very useful visit, and that a considerable amount of progress was achieved. I also know that the delegation left with a high regard for the professionalism of the Chilean insurance market. It is a real testament that, despite difficult circumstances, you have maintained these high professional standards.”

Speaking after the lunch event, Felipe Hoetz of the International Division of Crawford in Chile, said the seminar had helped the response to the earthquake. “Lord Levene’s presentation was particularly interesting when he referred to the positive conclusions reached by the Lloyd’s team to help the market better understand the impact of February’s earthquake,” he said. “Jose Ribeiro’s overview of Lloyd’s performance and security also helped reinforce the confidence that senior business leaders from the Chilean insurance industry have in the Lloyd’s market.

The delegation also found time to visit the Chilean Red Cross to hand over a cheque for £25,000 to help the ongoing relief effort.