Speaking in PwC’s executive breakfast briefing at the 66th Rendez-Vous de Septembre (RVS) in Monte Carlo, Lloyd’s CEO John Neal emphasised the critical nature of the re/insurance market, noting that perhaps for the first time ever, it has a massive role to play in stabilising society.
The CEO of the specialist insurance and reinsurance marketplace suggested that 2024 is “ushering change” on all fronts, highlighting the ongoing military conflicts in Ukraine and the Middle East, technological paradigm shifts, and the ever-present climate crisis.
“Uncertainty, I think, is the order of the day. I have a feeling that this is set for the foreseeable future, especially as we all hold our breath and look westward to that little election that’s coming up in November,” Neal said in the intro to his briefing.
He continued, “Whilst it might be a tough time to be in politics, I actually think it’s a great time to be in insurance, and I certainly haven’t said that on many occasions. I think we can play a critical role in this period of instability.”
Lloyd’s CEO went on, “We’ve been uniquely positioned, I think, to address some of the most complex risks that we see, there’ll be plenty more to come in 2024, of course, we’re still in the middle of the North American hurricane season, despite the quietness.
“I think insurance, maybe for the first time ever, has a massive role to play in stabilising society. When risks arrive, predictability has power.”
After releasing an impressive set of results for the first half of 2024, Neal noted that there’s no reason for pricing to change significantly and that the market still sees the makings of a super cycle amid stable underwriting and capital conditions.
Meanwhile, according to a new report from AM Best, which was published at the start of RVS, the Lloyd’s market continues to outperform US and Bermudian reinsurers on loss experience, however, underwriting performance reportedly remains subject to volatility due to its exposure to catastrophe risks and long-tail lines of business.
