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Lloyd’s chief warns of more insurance fraud
24.09.09
Lloyd's of London's chief executive Richard Ward today warned the deep recession would increase the number of fraudulent claims being made against the insurance market.
Meanwhile, as cash-strapped companies and households view insurance policies as a source of easy money, premiums remained low, he added, with prices “flat to down” on some cover.
Ward was speaking as the market reported a 39% rise in first-half profit, reflecting a relatively low level of catastrophe claims. It said its capital position was strong.
The world's oldest and biggest insurance market reported a pre-tax profit of £1.3 billion pounds, compared with £949 million in the same period last year.
Its central assets climbed to £2 billion from £1.9 billion last year.
“While we are well placed to take advantage of opportunities through the market's wide product range and distribution channels, our focus must remain on underwriting profitability,” Ward said in a statement.
Lloyd's added that external conditions remain difficult with the US windstorm season and recessionary trends posing a threat to the insurance industry.
Ward said the market plans a push into Europe next year.
