If You Knew What We Know
Lloyd’s, the world’s oldest and largest insurance organization has measured up to another giant catastrophic challenge. It has been announced that its ingenious “CHAIN OF SECURITY” has the strength to handle the obligations imposed upon it by the WTC catastrophe. As it has in it’s 315 year history, it will meet its duty promptly and with dignity and grace.
America first learned of it’s consumer attitude toward claimants following the 1906 Earthquake and Fire in San Francisco. C. E. Heath, the Chairman of Lloyds ordered the market to “PAY ALL CLAIMS!” Many insurance carriers faltered and hedged on claims payments similar to how claimants have been treated following the more recent Los Angeles Earthquake of 1994. Some of the 1994 claimants still have not been paid. Lloyd’s name is not listed among
the procrastinating carriers.
Anxiety over the WTC affects on Lloyds and how this may impact 2002 business can now be calmed for the most critical concern is known. The WTC claims are digestible and we can move to specific plans for the New Year!
FROM A.M. BEST CO.
More good news. A. M. Best Co., the world’s oldest and most authoritative insurance rating and information source has announced the affirmation of the A-
(Excellent) rating for Lloyds and the removal of the “under review status” which was placed on it until reliable WTC loss estimates were reported.
And more good news. A. M. Best Co. recognized that Lloyd’s has announced it’s Capital for 2002 will accommodate 12.3 Billion Pounds of premium, substantially more than year 2001 which was 11 Billion Pounds of premium. The 1.3 Billion Pound increase is a convincing argument that Capital Investors have confidence in the organization. This is approximately $1.6 Billion, 2002 over 2001 and indicates a premium capacity of $18 Billion. A. M. Best Co. stated in it’s report, “the Lloyd’s Syndicates are in a strong position to take advantage of a favorable pricing environment and it will produce a healthy return on investment”.
The 2002 Lloyd’s market is now set and ready to go. The Petersen International product line will largely be unaffected. Yes we will experience a modest rate increase, but given the fact that we have not had any rate increases for the past three years, perhaps the rate increases are justified. We sustain our pre-WTC plans to unveil a continuing flow of new products and to generate a substantial increase in business as conventional carriers tend to hesitate and to become even more conservative in their acceptance of risks.
AN ACCOLADE FOR PRODUCERS
As a Company, you the Producers and PIU as the Administrator/Underwriter satisfied the serious needs of many people for adequate amounts of disability insurance, for International Medical and Life, Kidnap/Ransom and Employment Practices Liability Coverage, plus a number of one of a kind custom insurance.
Having access to Lloyds in 2001 enabled PIU producers to place in the aggregate over $3,000,000,000 (Billion) of disability coverage on respective prospects and clients. This is particularly impressive when it is realized this figure contains no group plans, no annuity premium, and no large corporate liability or workers’ compensation accounts. It was all individually quoted and individually underwritten cases. We humbly thank producers for their patronage and congratulate them on extending their services to provide this important insurance.
THE PIU LIBRARY
Go to www.piu.org for copies of back issues of the Communicator, Monographs on important subjects, Lloyd’s Press Releases and a down load of all forms and sales materials.