Throwback Thursday: Lloyd’s capacity problem & Gulf War cost
Insurance Post’s Throwback Thursday steps back in time to January 1985 to remind you what was going on this week in insurance history when the pound was causing problems for Lloyd’s and the cost of the First Gulf War was being calculated.
17 January 1985: Capacity problem for Lloyd’s
Premium capacity was set to be a 1985 problem for Lloyd’s because of the falling value of the pound in dollar terms, Post reported.
The warning was given by Lloyd’s chairman Peter Miller, who said: “As the market is turning in underwriters’ favour over non-marine risks, underwriters are in a good position if they can provide greater capacity.
“But the weakness of the pound against the dollar is threatening to absorb much of the increased capacity.”
Gulf War cost put at $600m
The Gulf War had cost insurers close to $600m (£473m) since it began four-and-a-half years ago, Lloyd’s estimated.
More claims were coming in following a sudden intensified series of attacks during the closing stages of 1984 when seven tankers were hit.
The First Gulf War military conflict between Iran and Iraq lasted from 1980 to 1988.
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