News Briefs Q3 2021

IMB’s latest global piracy report recorded 68 incidents of piracy and armed robbery against ships in the first half of 2021, down from 98 incidents during the same period last year, and the lowest total since 1994. In the first six months of 2021, IMB’s Piracy Reporting Centre reported that 61 vessels had been boarded, there were four attempted attacks, two vessels were fired upon, and one vessel was hijacked. Violence against crews continues, with 50 crew kidnapped, three threatened and taken hostage, two assaulted, one injured and one killed.

Lloyd’s has published a new report, Insuring a sustainable, greener future, which outlines how the insurance industry will partner with critical industries to support and accelerate the transition to a low carbon economy. The report details the steps Lloyd’s is taking now and will take in the future in relation to the key themes of greener industry, transport, and energy. Alongside the report, Lloyd’s set out a climate action roadmap that includes a number of wide-ranging, practical steps that will help accelerate the transition of multiple industries to net zero carbon.

Bermuda: Re+ILS have released a publication, Bermuda’s Class of 2020: The re/insurance start-ups and new capital report. The report features discussion with the senior executives at 13 Bermudian (re)insurers, including startups, new Bermudian branches of more established businesses, and new capital raising activity from established Bermuda-based (re)insurers. It also outlines why executives saw 2020 as such an opportune moment to raise capital for new and existing businesses in Bermuda, as well as more information about the type of business the new startups may pursue.

Lloyd's has partnered with the University of Cambridge’s Centre for Risk Studies to produce a new report, Shifting powers: Meeting the challenges of the geopolitical landscape. The report aims to support leaders with the resources and knowledge required to help protect their organizations. It explores the transformation of the geopolitical risk landscape over the last decade and focuses on the 10 most pressing risks these themes present today, including cyberattacks, social unrest, and the migration crisis. The report also details the existing insurance solutions available to help businesses stay resilient during periods of crises and uncertainty, and identifies opportunities where the insurance industry can help develop new solutions. A summary of key findings is also available alongside the full report.

Lloyd’s has announced an aggregated profit of GBP 1.4 billion for the first half of 2021, compared to a GBP 0.4 billion loss for the first half of 2020. The combined ratio (CR) improved to 92.2% compared to 110.4% for the first half of 2020 (although 2020’s figure was 97.0% excluding COVID-19 claims, resulting in an underlying improvement of 4.8% on the CR). The improved CR was driven by reductions to both the loss ratio (50.50% versus 52.6% for prior year) and the expense ratio (35.8% versus 37.7% for prior year). Over all classes, energy contributed an underwriting profit of GBP 59 million compared to GBP 62 million for the first half of 2020. Casualty was the only class to report a loss (GBP 44 million) a much better result than the GBP 386 million loss for same period 2020.

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