JERSEY CITY, N.J., Jan. 27, 2004 — Lloyd's has renewed its licensing agreement with Insurance Services Office, Inc. (ISO), which significantly expands the range of underwriting and claims products and services it can use in the U.S. market.
Individual underwriters at Lloyd's will, for the first time, be permitted to use ISO loss costs (projections of future claims) for lines of insurance serviced by ISO. Lloyd's underwriters have been using ISO standardized policy language and other services since the initial agreement was signed in January 2000.
Included in the new agreement are ISO's Commercial Umbrella program and Public Protection Classifications used to measure communities' fire suppression capabilities.
Additionally, participating Lloyd's underwriters will be able to use loss estimates from ISO's Property Claim Services (PCS) unit as a trigger for Insured Loss Warranties (ILW) covering catastrophic losses from extreme events, such as earthquakes, hurricanes, tornadoes and terrorism. Under such warranties, a reinsurer is liable for payment if insured losses for the catastrophic event exceed a specified amount.
ISO Chairman, President and Chief Executive Officer Frank J. Coyne welcomed the renewed and broadened agreement as a benefit to both Lloyd's and ISO. "We're pleased Lloyd's underwriters appreciate the value of our products and services," said Coyne. "Since it began nearly four years ago, this strategic agreement remains the basis for building an even broader relationship with the London market."
Robert Childs, Chairman of Lloyd's Market Association and Director at Hiscox PLC, said, "This is an important development in the information available to Lloyd's underwriters, and we are delighted to strengthen our relationship with ISO."
Julian James, Director of Worldwide Markets at Lloyd's, said, "This agreement with ISO is further evidence of Lloyd's commitment to the U.S. market, which is the largest single source of business to Lloyd's, worth more than $8.2 billion a year."
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides data, analytical and decision-support products; consulting; data processing; and technical, statistical and actuarial services. ISO field services include on-site rating and underwriting services and the evaluation of community loss-mitigation efforts. ISO's products help customers with sales and prospecting, underwriting, rating and quoting, customer management, policy administration, product development, claims administration and fraud detection. ISO's AIR Worldwide subsidiary provides the latest technologies to assess and manage natural and man-made extreme-event risk. ISO's Elliston subsidiary provides consulting and claims services to the insurance industry. Through its ISO Claims Services, Inc. (iiX unit) and Intellicorp subsidiaries, ISO provides motor vehicle reports and criminal-records information and through its AscendantOne unit delivers rating, quoting and policy-administration solutions. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.
Lloyd's is the world's leading insurance market, with a capacity to accept insurance premiums of more than $26.7 billion in 2004. It is the world's second largest commercial insurer and sixth largest reinsurance group. In 2004, 66 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 180 countries worldwide. Visit www.lloyds.com.