2011 A catastrophic year
Floods in Australia; a massive earthquake in New Zealand; a tsunami in Japan; an active windstorm season in North America; and Thailand’s floods.
This was an appalling, unprecedented run of natural catastrophes. It all meant that in 2011, Lloyd’s faced its highest ever level of claims – its costliest year on record – and the impact of such a run of events was reflected in our results.
Richard Ward, Lloyd’s chief executive, said, ‘It does feel natural disasters are happening more frequently,’ although he added that ‘you have to look over 100 years rather than just the last ten’. But he also added: ‘When these things happen, everyone revises their model’ – or their long-term forecast for how any given risk might develop.
Despite these events, the Lloyd’s market remains robust and as well capitalised as ever. That Lloyd’s has been able to meet such a volume of claims is a tribute of our Franchise Board and managing agents.