Lloyd’s boss calls for liability overhaul to counter subprime crisis
Lloyd’s Chairman Lord Levene has called for a wholesale review of liability risk to combat the subprime threat.
Speaking to the British American Business Group in Los Angeles last week, he warned about the threat of litigation.
“As the issues unravel, we can be sure that more lawsuits will be filed, and the list of possible targets will widen,” he said. “It is therefore vital that boards carefully consider questions such as what culture and processes are in place to help identify potential liabilities.”
Lord Levene says Lloyd’s is well insulated against losses resulting from the subprime credit crunch, which the International Monetary Fund has estimated could reach $US1 trillion ($1.1 trillion) globally.
But he cautioned against reverting to protectionism as a bulwark against global risk, calling instead for “a better harmonised, more integrated infrastructure with closer international co-operation”.
Lloyd’s last week announced a £13 million ($27.4 million) increase in central assets to £1.9 billion ($4.1 billion) for the first quarter of the year, compared with the final quarter of 2007.
Speaking to the British American Business Group in Los Angeles last week, he warned about the threat of litigation.
“As the issues unravel, we can be sure that more lawsuits will be filed, and the list of possible targets will widen,” he said. “It is therefore vital that boards carefully consider questions such as what culture and processes are in place to help identify potential liabilities.”
Lord Levene says Lloyd’s is well insulated against losses resulting from the subprime credit crunch, which the International Monetary Fund has estimated could reach $US1 trillion ($1.1 trillion) globally.
But he cautioned against reverting to protectionism as a bulwark against global risk, calling instead for “a better harmonised, more integrated infrastructure with closer international co-operation”.
Lloyd’s last week announced a £13 million ($27.4 million) increase in central assets to £1.9 billion ($4.1 billion) for the first quarter of the year, compared with the final quarter of 2007.