Lloyd’s To Feel First War Impact

Thursday, March 20th, 2003 Catastrophe Property

The initial impact on insurers from the war in Iraq will fall mostly on Lloyd‘s of London, according to a new report by Standard & Poor‘s Ratings Services. Steven J. Dreyer, practice leader for insurance ratings at S&P, said, "Lloyd‘s is really the only ongoing market for the war risk," identifying war-related insurance risk in the marine and aviation areas. In terms of the underwriting focus, S&P expects Lloyd‘s to take a very short-term risk-by-risk approach--"and we would expect high prices," said Mr. Dreyer, who co-authored the new report on the war‘s impact. "The demand for war risk coverage is surging right now," said Robert Hartwig, senior vice president and chief economist at the Insurance Information Institute in New York

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