NEW YORK, March 14, 2000 – The Lloyd's of London insurance market today signed a license agreement with Insurance Services Office, Inc. (ISO) for the first time for use of its underwriting and claims products and services in the United States. Individual underwriters at Lloyd's will be able to use the ISOnet web-based system, which provides real-time access to a host of ISO's information services.
"This strategic agreement underlines Lloyd's commitment to the U.S. market and enables us to develop further our role within it," said Julian James, managing director, Lloyd's North America. "Lloyd's is delighted to work together with ISO in this way."
He continued: "This agreement will benefit everyone. Lloyd's underwriters and brokers will have ready access to the full range of ISO policy wordings. Where these wordings are used, the writing of policies will be easier and more efficient, and policyholders and producers will have the comfort of knowing that their Lloyd's policy is in a format that is tried, tested, and widely understood by everyone – from the local broker, to the claims adjuster and the courts. Lloyd's will also benefit from access to ISO's professional monitoring of insurance-related issues generally."
"We're pleased that Lloyd's underwriters appreciate the value of the products and services we offer," said Frank J. Coyne, ISO's president and chief operating officer. "We look forward to building on this agreement to develop a broader relationship with the London market."
Lloyd's underwriters will use ISO's products and services in offering primary insurance and reinsurance in the United States. A third of Lloyd's business emanates from the United States, with a premium income of over $4 billion annually, primarily in the commercial lines field.
The Lloyd's agreement is the latest in a series of global expansion moves by ISO in the past year, including the establishment of a Tokyo office, a contract to build a system for automobile insurance rate-making in Israel, and consulting assignments for Lloyd's underwriters.
Lloyd's of London
Lloyd's of London is the world's leading insurance market with a capacity to accept insurance premiums of over $16 billion. Lloyd's is a market, not a company. In 2000, 123 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 100 countries worldwide. Approximately 5 percent of world reinsurance is placed at Lloyd's.
In the United States, Lloyd's provides coverage for 80 percent of companies listed on the Dow Jones Industrial Average, and for 37 percent of the NASDAQ 100. The market has an A claims-paying rating from A. M. Best and an A+ rating from Standard & Poor's.
Insurance Services Office
New York-based ISO is a leading provider of information and analysis of property and liability insurance risk. Among other things, ISO collects data on premiums and losses from many insurers and develops loss costs – estimates of future claims payments by line of insurance, territory, and type of policyholder – that individual insurers use as the basis of their independent pricing decisions. ISO's standardized policy forms (policy language) are used by many insurers as the basis of the coverage they offer. ISO's Property Claim Services unit tracks catastrophes, estimates the resulting losses, and provides services for handling related claims.
Lloyd's of London (The Torrenzano Group)
212-681-1700 ext. 115