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LONDON, U.K. — Gov. John Bel Edwards and a delegation of state officials and business leaders met Thursday with executives of the Lloyd’s insurance marketplace to explore possible solutions for the insurance market challenges facing Louisiana companies and homeowners. Discussions focused on Louisiana’s relationship with the insurance industry and how the state can keep major insurers engaged in the practice of protecting Louisiana’s business and residential investments.
With roots dating to the 1600s, Lloyd’s is not a company but a group of underwriting syndicates, specializing in both general insurance and the reinsurance coverage that individual insurance companies obtain to spread their risk. Louisiana has been one of Lloyd’s leading markets for many years.
“Lloyd’s is vital to our energy industry, along with other major sectors of our economy,” Gov. Edwards said. “Today’s meetings addressed Lloyd’s ability to insure and reinsure risk in Louisiana, which is an important aspect of maintaining our healthy business climate. We had good discussions with senior leadership, underwriters, claims experts and others about their views of the Louisiana market, and what we can do from a statutory or regulatory standpoint to make the state more attractive to the industry.”
Lloyd’s representatives shared their perspectives on long-term insurance and reinsurance trends for Louisiana. They identified economic, political, legislative and regulatory factors that underwriters consider when evaluating where to do business. They also addressed how the risk modeling employed by the Lloyd’s insurance marketplace affects Louisiana.
“Insurance rates are driven by many factors today and we want to better understand the pressures on the insurance markets,” Louisiana Economic Development Secretary Don Pierson said. “Today, those issues are inflation, climate change and certain regulatory requirements. How we think about and address issues that are significantly impacting premiums is critical to supporting a resilient insurance industry that is important to both businesses and citizens.”
Insurance executive Tim Temple, president of Temptan, LLC, and president and chairman of Louisiana’s Committee of 100 for Economic Development, helped to arrange Thursday’s meetings.
“I am honored to lead our C100 delegation on this economic development trip to meet with UK-based stakeholders in our state,” Temple said. “Our meetings with the Lloyd’s markets are particularly important today as Lloyd’s plays a crucial role in the kinds of insurance and reinsurance that enable our economy to operate. We appreciate the opportunity to work with Gov. Edwards to build stronger relationships with these important partners.”
Insurance coverage is a critical issue for many in Louisiana, with market conditions impacted by the recent spate of natural disasters affecting the state. As a result, some Louisiana homeowners and businesses have found insurance harder to find, or more expensive. The governor’s discussions with Lloyd’s representatives addressed the role of a strong reinsurance market in helping individual insurance companies navigate catastrophe risk.
Thursday was the first full day of meetings on the economic development mission Gov. Edwards is leading in London. On Friday, he will meet with executives of companies managing major energy transition investments in Louisiana, including Shell, Cheniere Energy, Linde and Drax. In addition to a contingent from C-100, the governor is joined on the trade mission by representatives from LED, the Department of Transportation and Development, the Louisiana Offshore Terminal Authority, the Port of New Orleans and the Port of South Louisiana.