Lloyd’s Insurance Service for Unforeseeable Risks

The British banking group Lloyd’s unveils an insurance offer for hospitality industry specialists.

This affinity-based policy covers the aftermath of non-standard risks, incurred by unforeseen, unfavourable events outside of their customers’ control, and likely to induce revenue losses.
The offer is meant to be flexible and responsive to address unpredictable risks at best.
This parametric insurance automatically triggers indemnification when reduced profit (below market forecasts) is observed.
Lloyd’s says this service was developped with help from several insurance companies and investors, including Tokio Marine Kiln, Chaucer, Munich Re Syndicate, Beazley, Faraday and Axis.

Anticipating unforeseeable events for the sake of context relevance. In an economic and political environment considered increasingly uncertain, Lloyd’s comes up with an innovative insurance policy tailored to the circumstances.
Use case: Lloyd’s mentions the 2016 Nice truck attack and its catastrophic impact on the hospitality sector, causing revenue losses of around 15%, and even 40% for high-end hotels. Tourists chose to delay their stays.
Renewing the group’s offers. This product sees the day through Lloyd’s Product Innovation Facility, an innovation-dedicated unit designed to renew the group’s insurance offers. Lloyd’s syndicates have committed over £100 million underwriting capacity to back this Facility.
Automation for the sake of value addition. As they opt for a parametric model, Lloyd’s innovates through automating indemnification processes based on pre-defined criteria.

Lloyd’s disrupts the insurance market as they cover the consequences of multiple, non-standard risks rather than just the outcome of a specific risk.
This concept could later on be applied to other targets in the tourism industry: airports, shopping malls, restaurants, etc.

Category : Alertes quotidiennes