In his keynote address to the delegates at Aon’s 9th Energy Insurance Conference in Cancun, Mexico, Rolf Tolle, Lloyd’s Franchise Performance Director, told his audience that the Lloyd’s market is “ready, willing and able to meet the needs of Latin America’s energy and power companies.”
Tim Fillingham, chairman of Aon’s Natural Resource and Construction division, agreed with Tolle. In another keynote speech he indicated that London remains a major power in the global energy market as its impressive results add to its ever-growing reputation. “You only have to look at the results that we have seen for the Lloyd’s and London energy underwriters on the back of the biggest claims year in history to see why the market remains a global center,” he stressed.
In his remarks Tolle outlined the aims of the Lloyd’s three-year plan to develop the market as the platform of choice for its clients, adding that the market has a depth of energy expertise unavailable elsewhere. “The strategic plan will build and strengthen the Lloyd’s name,” he stated. “Lloyd’s has the financial strength and expertise to continue to be a significant force in the Latin American energy market.”
Tolle added that as a market, Lloyd’s, and the companies that operate within it, are committed to building further bridges with the region’s major companies. “Building relationships is key to future success,” he added. “Lloyd’s will provide longevity of relationship for the right price and terms and conditions.”
In line with Lloyd’s policy of maintaining underwriting profits, Tolle also stressed that the market would not be looking to offer cover at the wrong price. “There is a great deal of importance on long term continuity,” he indicated. “We must have the right price and structure or we will walk away.” As head of Franchise Performance, Tolle has the power to enforce that policy, as his office must approve the Syndicate’s business plans before they can be implemented.
While boosting the London market, Fillingham also seemed to second Tolle’s concern. He noted that Lloyd’s “underwriters will continue to lead programs at a time when the sector is seeing solid premium levels in all areas and in particular, the Gulf of Mexico windstorm risks, where there remains a shortage of capacity. We are asked by our clients to place their business and many will look to London for their lead.”
He also observed: “If you look at Lloyd’s as a whole, the market was predicting a 7 percent reduction in capacity for the 2006 underwriting year and now we have a 7 percent increase, which speaks volumes for the opinion of the underwriters that pricing and terms will remain positive.”
Fillingham indicated that Lloyd’s underwriters were taking full advantage of the conference. “Latin America is a major region for the energy market and the opportunity to talk to the companies has been taken up by the London market. There is every expectation that the two sides will exchange their views on their expectations for the year ahead over the conference’s two days,” he concluded.
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