Moody's says it expects the terrorist attacks on the US to change the way business is conducted at Lloyd's.
It said Lloyd's large exposure to the insured losses caused by the attacks, coupled with the recent insurance market down-turn, would “challenge the basis of the limited mutuality of the market and put severe pressure on many of the weaker operating units within it. Furthermore, these losses will accelerate the trend towards larger, better capitalised syndicates operating at Lloyd's".
The ratings agency added that, on a global basis, policyholders were likely to join a "flight to quality" as they try to make sure they place their business with companies that can cope with catastrophic events.
