Lloyd's of London warns of 'perfect storm' threat to insurance market

[CHIMO]

The head of the Lloyd's of London insurance market warns today that one more major disaster could plunge the insurance industry into the red this year.

Richard Ward will tell a gathering of insurance chiefs that the industry is facing the toughest year he can remember, the Guardian has learned.

"It isn't overstating the situation to say that the insurance industry is facing a potential perfect storm this year," Ward says in his keynote speech at the Insurance Day London Summit.

Speaking as the industry braces itself for the US hurricane season, Ward says: "That is a significant challenge for the industry worldwide but it is a storm we can see coming and we can prepare for. Insurers who keep their discipline and don't chase risky short-term profit will stand the best chance of long-term survival."
http://www.guardian.co.uk/business/2010/may/18/lloyds-insurance-disasters-profit-warning

[JuniperLea]

1. Because they gamble with insurance premiums paid to them...

Instead of making sure they have enough to cover their bets.

[CHIMO]

4. They

More likely close their eyes and say, well everybody else will issue them a policy so we should do it also. After all we will be bailed out by the industry raising premiums. If they would do their own risk analysis, based on a real analysis of risk, then some insurers would have them lining up at the doors.

[Donnachaidh]

2. alltogether now - anna one anna two

AWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW!!!!!

Poor babies is frightened they might go into the RED. Somebody call a waahhmbulance...

[RandomThoughts]

3. That's a call to close ranks from that side.

The discipline comment is about that.

They are worried about getting picked off one at a time.

It is an interesting concept, the thinking is reversed, what they see as being picked off is being set free, but they are within their own mind frame and see it as bad.

Hence why sometimes pressure is used, but with peace comfort and love, through truth and justice, to pop them out where they can wake up.

Should be easier if they bunch together.

Good news.


(And protecting the economy was them protecting themselves.)

[CanonRay]

5. I helped!

I put in a claim for my windshield. Beware the words "perfect storm"...it is usually followed by "bailout".