PEOPLE
INDUSTRY ICON
on the US economy of such an attack would be $243 billion, but it could hit more than $1 trillion in the most extreme version of the scenario. More recently, research by Lloyd’s and Cyence detailed that a cyberattack could potentially trigger $53 billion of economic losses – roughly equivalent to a natural catastrophe along the lines of 2012’s Superstorm Sandy. “The key thing that came out of that report was how much of [the risk] was not insured,” Maynard says. “It was only about 10% that was insured.”
“It’s exciting times,” he says. “We think it’s very important as a group that we horizonscan, because if you want to be ready for a society in five to 10 years, you need to start changing now and anticipating it.” The Internet of Things is a major focus for Lloyd’s, which plans to publish a report next year devoted to the subject. Maynard’s team will also pursue further work around the sharing economy and look at developments in the mining industry. “They’re innovating themselves,” he says, “and we think it’s useful to draw the attention of the market to that.”
“We think it’s very important as a group that we horizon-scan, because if you want to be ready for a society in five to 10 years, you need to start changing now and anticipating it” Insuring drones is another subject that has been occupying the attention of Maynard and his team, along with the risks associated with the sharing economy. “We’re also looking at new ways of working – it’s not just about products,” he says. “For example, electronic placement has been a big project to try to streamline the placement of risk at Lloyd’s, and that’s now up and running. We’ve got 90 underwriting firms on there and 25 brokers. So people are starting to adopt it, and many risks have been bound through this live system. That’s a pretty big innovation and something that we hope will continue to grow.”
The future of innovation Looking ahead, Maynard says Lloyd’s has a lot in the pipeline.
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And then there’s the challenge of the insurance gap. “For a lot of countries in the world, when disaster strikes, only a tiny fraction of that is insured, particularly in developing countries,” Maynard says. “I’d personally love to see a bigger insurance market globally providing protection to those countries because, if anything, they have even more to gain through risk transfer. Sometimes their economies are set back a decade or so by a major disaster, whereas if they had insurance, they would be up and running again and continuing to develop straight afterwards.” For Maynard, staying on top of these issues and designing solutions to address them is all part of ensuring that the Lloyd’s name remains synonymous with insurance three centuries from now.
A HISTORY OF INNOVATION AT LLOYD’S
1904
Underwriters at Lloyd’s become the first to offer car insurance
1911
Lloyd’s writes the first-ever aviation insurance policy
1920s
Silent film star Ben Turpin buys an insurance policy with Lloyd’s, payable if his trademark crossed eyes ever uncross
1965
The first space satellite insurance is placed at the Lloyd’s market, covering physical damage to the Intelsat 1 on pre-launch
2006
Soccer superstar David Beckham insures his legs for £100 million
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