Lloyd’s might have taken a bit of a pounding from last year’s northern hemisphere hurricane season, but Chairman Lord Levene says the market is back for more. The four hurricanes that hit the US south-east coast last year cost Lloyd’s $2.3 billion.

Lord Levene says the lessons of last year’s hurricane season highlighted important lessons to be learned even as Lloyd’s braces for another tough season this year.

He says the insurance industry has made a number of improvements in responding to policyholders compared with Hurricane Andrew – the most expensive windstorm in history, which hit Florida in 1992.

He says Lloyd’s is proud of its response to Florida policyholders and that despite a hard year for catastrophes, the market didn’t pull back from insuring risks in Florida, even though other insurers did. 

“Although we have learned much since Hurricane Andrew, four hurricanes pummelling the south-east coast during just six weeks was an exposure that no modelling company or insurer had taken seriously ever before,” he said.

Lord Levene says insurers and regulators must work more closely for better disaster planning.

“Given the apparent upward trend in catastrophe events, we are left in no doubt as to the need for robust, effective disaster planning for the future. That should not mean companies acting in isolation.”