Les Rencontres AMRAE 2004 Presentation by Nigel Weyman Partner, JLT Risk Solutions

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Les Rencontres AMRAE 2004Presentation byNigel
WeymanPartner, JLT Risk Solutions

• 14 16 Janvier 2004

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The Brokers Role
Market Knowledge
Service
Claims
Best Price
Documentation
Negotiation
Scope of Cover
Technical Advice
Collection and Payment
Quality / Continuity Of U/W Security
Premium Processing
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Has the Brokers RoleAltered Post 9/11?
NO!
BUT The Market Environment has changed
dramatically
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The Market Pre 9/11
Market Beginning To Harden
Moderate Increase in Premium
Long Term Policies (3 Years)
Fixed Conditions at Lowest Price Available
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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The Hardest Market
Large Premium Increases
Annual Policies Only
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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The Hardest Market
Restricted Cover
Excess AV52 Third Party Limited to 50 million ex
Products but
AV52 E/F/G on renewal
Overall Limits 1.5 billion down from 2 billion
Government Intervention
Reinsurers of Last Resort
US FAA Scheme Homeland Security TRIA
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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The Hardest Market
Surcharges
Large Special Surcharges to Reflate
Airlines 1.25 per pax
Products 25 (negotiated downwards)
Hull War 0.05
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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The Hardest Market
Reduced Usable Capacity
Pre 9/11 200 Flexibly given
Immediately Post 9/11 Capacity reduced to 150
Consolidation
Capital Providers
Continue Show
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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Market Capacity

• Illustration

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The Hardest Market
Reduced Usable Capacity
Pre 9/11 200 Flexibly given
Immediately Post 9/11 Capacity reduced to 150
Consolidation
Capital Providers
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Market Capacity
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The Market Post 9/11
Hardest Market
Large Premium Increases
Reduced Usable Capacity
Restricted Cover
Surcharges
Continue Show
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The Future Problems

• Weak Dollar the principal currency of the
  insurance market
• Increasing litigation worldwide not just USA
• Short term commitment of some capital providers
• Increased terrorism concerns
• Regulation of financial market

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Broker Solutions

• Innovation
• Flexibility
• Technical Expertise