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Lloyd's of London CEO Richard Ward on the cost of Hurricane Sandy to the insurance industry.
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Well you know speaking of savings aftermath.
New York governor Andrew Caldwell making a plea for government funds.
Saying that -- -- economic impact could cost the -- 42 billion dollars.
Lloyd's of London as the world's largest specialty insurance market specialist insurance market.
And hurricane sandy after that -- Lloyds is warning that not the US but countries all over the world.
Our -- shall work for natural disasters.
Richard -- is the CEO of Lloyd's of London he joins us now live from London the US.
And Canada your biggest market by forty -- 43% of business that you say that we are not prepared.
Enough what can we do that.
Well we could be more prepared I mean we've seen significant natural catastrophe say the recent years.
I'm taking this here receives storm sandy in the US.
But also an office here we look at what happened in the Far East with the tsunami and earthquake in Japan earthquakes in new -- and floods in Thailand -- -- been experiencing significant natural catastrophes and when we look at the that cost of the damage caused by these could -- trees.
A lot of the -- is being picked up by governments and we would argue that the insurance industry is better equipped to deal with managing -- risks.
Well you know -- talk about business a Lloyds again so US focused as you -- the first half of 2012 because of a lack of that damage natural disasters the numbers were fairly good what -- -- look at that now for the second half.
Of 2012.
We're of course as you said in the second half we have had -- -- storm -- And that still -- a lot of work speeds on in actually assessing the true costs of seed -- sandy.
The M best estimates that the measurement for the cost of the insurance industry not the economic costs but the -- -- -- industries anything between fifteen billion.
Dollars and 25 billion dollars that does seem to -- -- sort of on a pop probably with current and all week.
Okay what's showing slowing trend restaurant one billion richer what does this mean -- -- always -- killer.
We will we will pick up a proportional -- -- typically will pick up anything between.
Five and 10% -- fiset storms when they hit the US.
But at this stage without a clear -- understanding what the -- -- number is is difficult to say what our exposure is we're working without syndicates here in the Lloyd's market.
To come up with a -- estimate that we -- it will have by the end of the yen.
You know -- one of the things -- being talked about more war here on the East Coast in particular after sandy is constructing.
A coastal flood barriers is that something that you support.
Well I'm an I think you hit a question I clearly am afraid but -- it -- not cancel defense is yes -- We're very keen to see government spends our own -- protection in case -- defenses because.
And it doesn't former -- frankly we don't want proxies to -- It's far better to not have the front in the first place but if it does -- reassurances that to help but said governments -- are investing defenses.
To prevent this happening in the first place.
No I think look coastal flood defenses -- is barrier.
All of the English Richard -- thank you very much as -- -- to have going to jump from London bank you're injured.
