We now have a true global hub for risk

Miami now represents a true, global re/insurance hub and a centre of risk transfer for both Latin America and the Caribbean, as well as many US risks, including the burgeoning excess and surplus (E&S) lines market. The launch of Lloyd’s Miami hub in September last year will help foster further innovation.

So says Marc Lipman, president of the Americas, Lloyd’s. Speaking to Miami Reinsurance Week Today, he said Lloyd’s has already enjoyed good traction in the market on the back of launching its Miami office. It is having far more conversations with MGAs, managing agents and capacity providers keen to work more in Latin America. Thus Lloyd’s is now in a better position to support those ambitions. 

“Sometimes, when you make a good decision, the only thing you wonder is why it had taken so long to make it,” he said. “Miami is now a vibrant (re)insurance hub and a very important place for Lloyd’s to be. We see so many stakeholders here looking to innovate and grow in Latin America and the Caribbean. With our knowledge and expertise, Lloyd’s can help and facilitate those entities to achieve their goals.” 

Latin America and the Caribbean represents around 4.6 per cent of Lloyd’s gross written premiums, worth $2.7 billion. He noted that in 2023, its market share of business placed from the region grew by 14.5 per cent. While the equivalent numbers for 2024 are not yet available, and would include the period since the Miami office launched, he anticipates growth will be at a similar level. However, he stresses the importance of this growth being sustainable and profitable over time. 

He also cited several wins in other ways: through working with companies coming out of the Lloyd’s Lab now targeting offerings in Latin America. One of these is Suyana, which has partnered with Benchmark Labs to create a hybrid-parametric flooding and hurricane insurance product. It is now eyeing opportunities in Latin America. 

Another is the WDS Syndicate [Wildfire Defense Systems], which has been launched as a syndicate-in-a-box, a new structure created by Lloyd’s to allow smaller, innovative businesses to become part of the Lloyd’s insurance market through a more streamlined approval process. WDS has already rolled out its services in several resilience in markets. We want to attract the best underwriters, though we think we already have lots of them, and if they are interested in Latin America, we can help.” 

He said achieving success depends on a two way flow of information. As representatives of the Lloyd’s market, “we receive direction from syndicates on their aims and goals; equally, from our Miami office, we can now offer information on the Latin American markets from the ground up”. In terms of where he sees the greatest potential, Lipman noted that Brazil is significant, representing $315 million of premium into Lloyd’s annually. Mexico is also very important with $380 million in annual premiums. 

Though smaller, he said, Colombia isas well as to support potential new captive syndicates, multinational business and bring in new capital. Lipman stated that this area also offers great potential for the market. He noted the importance of Southern states such as Florida and Texas in the amount of premium Lloyd’s writes. Only California is larger by GWP for the Lloyd’s market. 

“There is so much potential. Concentrating Latin America and Caribbean market development activity from Miami will align Lloyd’s operations in the Americas across four offices in New York, Miami, Rio de Janeiro (Brazil) and Toronto; broadening the support and expertise Lloyd’s offers to its stakeholders and market participants, while supporting the market’s ambitions in the region.”

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