The CEO of Lloyd’s of London, Richard Ward, has said that the insurance industry has already taken all the necessary steps and is now prepared against any difficulty arising out of a collapse of the single European currency.
Lloyd’s of London has already prepared a contingency plan that involves switching from the Euro to a multicurrency settlement if Greece decides to leave the Eurozone. The business’s current strategy is to maintain its portfolio at bare minimum levels in Europe. Mr. Ward was quoted as saying, "With all the concerns around the Eurozone at the moment, we've got to be careful doing business in Europe…”
Nevertheless, the continent accounts for 18% of the company’s revenues, with or without contingency plans, the business’s £58.9bn investment portfolio will get a massive hit if Euro collapses. It has been a rough couple of years for Lloyd’s of London, amid earthquakes and tsunami, the business has reported a net loss of £516m in 2011.
Another insurance firm Euler Hermes, specializing in providing credit insurance in European trade has also plans to reduce its cover for Greece. The company’s spokesman told Bloomberg that the business has “maintained a high level of cover for [their] customers until today. But now we are confronted with a changing situation."