The legendarily prompt and fair payouts made and driven by Sir Cuthbert Heath after the San Francisco earthquake in 1906 formed the basis of generations of transatlantic trust and partnership.”
“In World War II, such was the importance of the US market that London underwriters travelled to the US to reassure their North American counterparts that the market would continue to keep information about insured ships secure should the Germans capture the UK. As a result, ships were identified via codes rather than names for much of World War II, with the key to the codes held in New York. Today, the US and Canada together make up 58% of Lloyd’s market premium.”
“The role of underwriters and brokers is to service these North American clients. The role of the LMA is to continue to work closely with Lloyd’s to ensure that the regulatory environment is fit for purpose to conduct this business, while also ensuring we promote the Lloyd’s marketplace as the global leader in the management of complex specialty risk. The LMA role is also one of coordination of insurers in times of catastrophe, to enable prompt responses to claims and management of regulatory requirements. Through a more active personal and promotional presence at key US events, we will reinforce with US insurance market participants that Lloyd’s insurers remain a vital, engaged and proactive partner for their business in London.”
“In 2025, the LMA will therefore look closely at how to deliver this engagement alongside Lloyd’s and on behalf of our members. We are continuing to develop this plan, but we know that a regulatory engagement strategy will be part of the story. We also know that it will be a priority.”
“Many people will ask whether the focus of some US activity should sit around the perceived threat of the Trump administration. Trump is already talking about increasing tariffs and about pursuing a ‘tax and punish’ policy to deter foreign competitors. In this area, I would advise calm and caution. It is worth reflecting that US insurance is regulated on a state-by-state basis. While we must take the new Republican administration’s plans seriously, we must also focus on strengthening Lloyd’s position by improving and raising the level of our engagement with state regulators first and foremost.”
“In Sir Charles Roxburgh, Lloyd’s will have a new Chair with considerable access to US views, and experience not only in how a Donald Trump administration will operate; but also great expertise at international negotiation. This is a helpful development at this point in time.”
So let’s work together in 2025 to focus on building our reputation and a ‘go-to’ status in North America. The LMA will do its part, and insurers and brokers also will no doubt have this in mind as we enter a new year with more challenging market conditions and close out another active hurricane season. The partnership across the Atlantic has been critical to everyone in insurance for many decades, and we must make it a priority for it to remain so.
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