Inga Beale, Lloyd’s chief executive, has called for less protectionism in emerging market economies in order to encourage these markets to open up and the flow of global capital. Speaking at Insurance Europe’s seventh international insurance conference, Beale expressed concern that local markets’ capacity capabilities were being limited by controls which also prevented them from benefitting from the expertise of more mature markets.
Beale offered a comparison between the recovery processes in New Zealand and Haiti, both of which suffered major earthquakes in 2010. Approximately 80% of losses in New Zealand were insured, where global capital flow aided in recovery, whilst in Haiti, almost 99% of losses were uninsured and the recovery process is still ongoing.
Beale continued by expressing her optimism about the number of opportunities for Lloyd’s globally, despite the hurdles associated with closed markets. She stated that insurance is providing for less than 10% of the risks faced by businesses, leaving much opportunity for specialist insurance.