LMA provides update on developments in Japan
The Lloyd’s Market Association today said Lloyd’s exposure to the devastating Japanese earthquake and tsunami will be largely limited to reinsurance.
The LMA said London market underwriters will not play a key role in the local loss adjustment process.
“Lloyd’s underwriters continue to monitor the developing situation in Japan following the devastating impact of the earthquake and tsunami," the LMA said.
"The ongoing search, rescue and recovery operations will remain the priority and focus for the immediate future.
“Lloyd’s underwriters will be assessing their own amounts at risk and using computer-based catastrophe models to quantify the loss potential for their own portfolios. Loss parameters are expected from the major catastrophe model providers in the near future."
The LMA added: “Since the large majority of Lloyd’s business in Japan is written as reinsurance, mostly of local carriers, Lloyd’s underwriters will not play a large role in the local loss adjustment process.
"The continuing problems caused by inoperative communication networks and damaged infrastructure are likely at least initially to slow the flow of claims information.
"Underwriters will remain ready to respond to requests from their reinsureds as the process of repair and reconstruction gets underway.”