Andrew payout

HUNDREDS of millions of dollars of claims arising from hurricane Andrew have already been paid to US insurers by Lloyd's underwriters and London companies, David Coleridge, chairman of Lloyd's, said yesterday.

Speaking in Chicago, Mr Coleridge said Lloyd's insurance products remained as secure and innovative as they had always been but, at the end of the day, the real test of an insurer was its claims service.

On Hurricane Andrew he said: 'Again our claims service has shown itself. We have a special settlement scheme in place which is designed to pay on brokers' advices, easing the cash flow of hard-hit US insurers, with the differences settled later.'

Mr Coleridge said that rate increases and improvements in policy terms and conditions indicated a return to sensible underwriting in the London market, while at Lloyd's costs had reduced significantly.