Link to Lloyd's Newsletter

Link to Lloyd's Newsletter
May 2011

In this issue John Nelson Named Next Chairman of Lloyd's Lloyd’s America Opens New Office in Atlanta Focus on SmithAmundsen It's Already Been a Busy Year for Insurance Associates! Sweepstakes Scams Target Seniors ALB on Twitter @linktolloyds \| Lloyd's on Twitter @LloydsofLondon \| ALB Linkedin group

John Nelson Named Next Chairman of Lloyd's from lloyds.com John Nelson has been confirmed by the Council of Lloyd's to succeed Lord Levene of Portsoken as the next Chairman of the Lloyd's insurance market. Mr Nelson will take up office in October. Speaking about his new position, Mr Nelson said, "It is a great honour for me to accept this role and I look forward to playing my part in steering the world’s leading insurance market through the next stage of its evolution." He added that recent global catastrophes such as the earthquakes in Japan and New Zealand and floods in Australia highlighted the "vital" role insurance plays in helping communities and businesses rebuild after a disaster. Lord Levene, who is retiring after nine years as Lloyd's Chairman, described Mr Nelson as an "experienced businessman with a successful record". He added that he believed the appointment to be an "excellent choice". Chief Executive Dr Richard Ward said he was "delighted" to be welcoming John Nelson to Lloyd's, adding: "Lloyd’s is in strong financial shape and can face the future with confidence. John’s business experience makes him the perfect candidate to take on this role and help Lloyd’s build on its position as the preeminent market for specialist insurance." Mr Nelson boasts a long and distinguished career in the financial services, real estate and retail sectors. He spent 15 years at Kleinwort Benson, working in both the UK and the US, before moving to Lazard in 1986 where for 13 years he ran the corporate finance division - becoming Vice-Chairman in 1990. He retired as chairman of Credit Suisse First Boston Europe in 2002 after three years and took up a number of board and advisory positions including Deputy Chairman of Kingfisher plc. He is due to retire from this role later in 2011. John Nelson joined Hammerson plc in 2004 and became Chairman in 2005, a position he will continue to hold. back to top

Lloyd’s America Opens New Office in Atlanta from lloyds.com Lloyd’s has opened an office in Atlanta to facilitate education and outreach to the many Lloyd’s stakeholders in the Southeastern US, the fourth and newest region within Lloyd’s America. Lloyd’s Chairman Lord Levene opened the new office at a reception hosted by the British American Business Group and the Atlanta chapter of RIMS. The event was attended by government officials - including recently elected Georgia Insurance Commissioner Ralph Hudgens and his staff, representatives from a wide variety of insurance brokers, carriers and related service providers, local business leaders, risk managers, and several members of the Lloyd’s America team. This latest Lloyd’s representative office was established in a vibrant city at the heart of a region that includes Alabama, Mississippi, Florida, Georgia, South Carolina, North Carolina and Virginia. These states account for a quarter of Lloyd’s US business, with six of them ranked in the top 10 by premium volume. Atlanta is home to branch offices of the largest global and national insurance, reinsurance and wholesale brokers, as well as local and regional offices of the many Georgia-based firms who do business at Lloyd’s. In the years since the 1996 Summer Olympics, the capitol of Georgia has become an international business centre and natural site for a Lloyd’s representative office. "Everyone who works in our business has an office here. A great deal of Lloyd’s business is produced from this area and we wanted to ensure that the market is promoted more actively across the region than it has been" says Rodney Smith, Director of Lloyd’s America Southeast Region. "If you’re a broker based in Atlanta and have a risk to place you are likely to think of underwriters that have offices here in the city, often because you’ve run into them recently. We’re now here to help those brokers think of Lloyd’s." Smith sees bright opportunities in this corner of the US for the world’s largest specialist insurance market. "Lloyd’s has done a tremendous job already in this region. However, there’s more that we can generate from the Southeast. We can do more to penetrate this market by letting agents and brokers know that Lloyd’s is a great market for a broader range of clients and prospects than many have previously believed." See photos of the Lloyd’s reception in Atlanta at lloyds.com back to top

Focus on SmithAmundsen - new ALB member SmithAmundsen LLC has 140 attorneys with six offices throughout the Midwest – including Chicago, Milwaukee and St. Louis. They act as counsel to business entities and individuals with litigation or transactional requirements in a wide area of industries, including insurance, banking and financial services, aerospace and commercial transportation, health care, public sector organizations, construction, and manufacturing. Their attorneys combine litigation experience with a practical business approach to offer client-centered services. The foundation for their success is the integrity, quality and experience of their attorneys and staff; an understanding of the relationship between litigation risks and business objectives; and the desire to explore new and innovative ways to solve client problems. SmithAmundsen attorneys represent the interests of insurers in all aspects of their business, including claims counseling, litigation, dispute resolution, reinsurance and policy drafting. A number of attorneys have held positions in insurance companies – providing a unique perspective on client concerns. They also maintain a perspective beyond the individual case and look for solutions consistent with the long term interests of the company. Whether the issue involves policy coverage, avoidance of bad faith, representation in arbitration or litigation, reinsurance disputes or drafting policy language, SmithAmundsen has the expertise to provide reliable and cost effective solutions. On January 1, 2011, SmithAmundsen LLC and Madsen, Farkas, & Powen LLC, a Chicago-based firm with a focus on matters involving aviation, products liability, employment practices, general casualty, subrogation, and coverage, merged their practices. At the time of the merger, SmithAmundsen’s Chairman and CEO, Glen Amundsen, said “The addition of MFP’s practice is a great strategic addition to the firm that enables us to serve a new segment of the legal industry. They have a well-deserved reputation and will enhance the services we offer clients in a number of sectors.” Diversity initiatives at SmithAmundsen center upon creating and nurturing a diverse, collaborative and inclusive working environment. They believe that multiple perspectives, derived from wide-ranging cultural and life experiences, are the catalyst for inspired thought from which firm, clients and community benefit. In 2007, they established a SmithAmundsen scholarship rewarding excellence in legal writing and contribution to diversity with the Illinois Institute of Technology/Chicago-Kent College of Law. The goal at SmithAmundsen is to become the clients’ primary source for legal services and business advice. In addition to litigation, they also use non-traditional means of resolving cases. They understand the importance of “bottom line” analysis. The attention paid to the financial ramifications of litigation and its effect on enterprise outcomes helps provide clients with the advice they need to make appropriate decisions. For more information on the firm and the services offered, please contact: Micheal McGrory SmithAmundsen 150 North Michigan Avenue, Suite 3300, Chicago, IL 60601 312.455.3902 mmcgrory@salawus.com www.salawus.com Download our iPhone app: iSAlawus back to top

It's Already Been a Busy Year for Insurance Associates! IA has been busy! They kicked off the year in January with more than 80 insurance professionals at their annual holiday party - this time at Rock Bottom Restaurant. They co-sponsored the 3rd annual IA/CPCU State of the Insurance Industry Job Market Forum in February. As in past years, IA put together a team for the St. Baldrick's charity in March - raising more than $8,000 for kids with cancer. Later that month, IA hosted a members-only networking event in the recently-renovated Lloyd's office in Chicago. IA members gathered in April for a pub crawl to celebrate the Masters golf tournament. Whew! Upcoming events include a White Sox outing, a Lake Michigan cruise, a 5K charity run, a bowling party, and other opportunities for networking, education and volunteering. Benefits of IA membership include free attendance at ALB seminars - offering important Illinois Department of Insurance CE credit - and discounts to IA events. Learn more about Insurance Associates at linktolloyds.com/ia back to top

Sweepstakes Scams Target Seniors Some con artists use the lure of a sweepstakes to convince consumers to send in money to claim a "prize" they've supposedly won. They tell consumers that the only thing that separates them from the "winnings" is a fee to cover insurance, taxes or service charges. But as all too many consumers know, the winnings never materialize. In a new spin on this hoary scam, crooks are getting bolder, using names of government agencies, legitimate insurers and phone numbers that mask where they're calling from. Claiming to represent - among others - the Federal Trade Commission, the "national consumer protection agency", or the non-existent "national sweepstakes bureau", and often invoking the Department of Homeland Security, they say the delivery of the sweepstakes prize is being supervised by the supposed government agency. They use VOIP technology to make it appear they are calling from Washington, DC, or New York, or the consumer's own area code. These scammers then convince consumers to wire money to a foreign country - usually through commercial money transfer companies like Western Union or MoneyGram - to an agent of "Lloyd's of London" or some other well-known insurance company to "insure" delivery of the prize. The con artists take the money and disappear. According to the FTC and the US Postal Inspection Service, 11% of the US population - more than 3 million people - are ripped off by scam artists each year. Last year, people reported losing more than $150 million to scammers - although the actual figure is likely 10 times higher. The scam artists disproportionately target people over the age of 50 - particularly women. Lloyd's and the FTC, the USPIS, the money transfer industry, and state, federal and international law enforcement agencies are working together to inform the public about these scams and to shut them down. Resources Lloyd's consumer alert about sweepstakes and lottery scams Lloyd's US toll-free helpline (866) 264 2533 Federal Trade Commission Bureau of Consumer Protection FTC toll-free complaints line (877) FTC-HELP back to top

Views expressed in this newsletter do not necessarily reflect the opinion of Lloyd's. While every effort has been made to ensure that the information given is accurate, no responsibility (legal or otherwise) is accepted by Lloyd's for any errors or omissions. Copyright © 2011 Association of Lloyd's Brokers