NU Online News Service, May 4, 4:05 p.m. EDT--Lloyd's Chairman Lord Peter Levene called for vast improvements in disaster modeling and planning as well as claims handling in response to the Florida hurricane season of 2004.

Speaking to insurance professionals in Miami yesterday at a gathering sponsored by three professional insurance organizations, Lord Levene said that although the insurance industry has made a number of improvements in responding to policyholders last year, compared to Hurricane Andrew in 1992, much remains to be done.

Lloyd's incurred the second largest loss of any carrier, with a net loss of $2.3 billion from the four hurricanes, he noted.

"Given the apparent upward trend in catastrophe events, we are left in no doubt as to the need for robust effective disaster planning for the future," he said. "That should not mean companies acting in isolation. Part of the process must involve insurance markets and their regulators working together more closely on an ongoing basis, sharing the respective knowledge and expertise."

Improvement in claims handling--particularly the relationship between the carrier and adjuster--is also imperative, the chairman said.

"That relationship must be founded on trust and flexibility, and as the frequency and costs of disasters trends upward, it will become more important. The urgent practical need for speedy 'help on the ground' remains the paramount concern in a time of crisis," he said.

Special Reports /

Lloyds Head Urges Disaster Improvement

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