IICI report finds convergence between Lloyd's and Bermuda markets

Lloyd’s and Bermuda represent distinct and different approaches to underwriting, but their work practices and risk evaluation methods are showing signs of convergence, according to a report published by The Insurance Intellectual Capital Initiative (IICI).

The industry-commissioned report, 'Trading risk: The value of relationships, models and face-to-face interaction in a global reinsurance market', analyses the strengths and weaknesses of the reinsurance underwriting and broking practices of the Lloyd’s and Bermuda marketplaces.

The report finds that each market can benefit from learning from the strengths of the other to reduce inefficiencies and redundancies at each stage of the process of writing a risk.

Drawing on the strengths of each marketplace, the report makes a set of recommendations for best practice at each stage of the trading process, offering a guide for reinsurance firms and broking houses to evaluate and change their current practices.

Bronek Masojada, CEO of Hiscox Ltd and chairman of the Insurance Intellectual Capital Initiative, said: "Reinsurance underwriting practices around the world are converging.

"The next differentiator will be the ability to move from 'corner store' management practices to those suited to multi-billion dollar global enterprises."

Lloyd's also recently recreated its underwriting room in Dublin.

Participants from the Lloyd’s Market, along with Irish and UK industry representatives, hosted 49 Lloyd’s boxes in the Dublin Convention Centre attended by over 800 people from across the insurance market.

The event allowed representatives from the Irish and Lloyd’s markets to discuss their existing insurance arrangements and explore opportunities for the future, strengthening and developing relationships across the sea.

Approximately €25,000 (£20,828.55) was raised for Insurance Charities UK & Ireland, which supports those in the insurance industry that have fallen on hard times.