The Lloyd's of London insurance market has announced a move to boost its Central Fund by $1bn (£678m) over the next two years.
The premium levy on all syndicates is to rise by 0.9% from next year and remain at that level until the end of 2003. The curre
The Lloyd's of London insurance market has announced a move to boost its central fund by $1bn (£678m) over the next two years.
The premium levy on all syndicates is to rise by 0.9% from next year and remain at that level until the end of 2003. The current levy is 1.1%.
Lloyd's chairman Sax Riley said: "This is an exercise in enhancing the market's financial security for the future. The central fund will have more money in it at the end of 2001 than it did in December 2000.
"We believe this is a prudent and responsible move in the wake of what will be the world's biggest ever insurance claim. It will also boost the central fund well above the levels of recent years.
“The worldwide upsurge in premium income caused by rising rates means that this is the right time to take steps to build up reserves for the medium to long term,” he added.
The premium levy is paid by syndicates to the Corporation of Lloyd's on a monthly basis. The central fund annual contribution rate remains unchanged at 1% of capacity.
