Lloyd’s of London is taking a hard stance against insuring the stock of Californian wineries, leaving domestic insurers under pressure to provide cover. California is the world’s fourth-largest wine producer by volume and wineries have traditionally relied on Lloyd’s insurance, specifically the cargo market, for inventory stock throughput policies. However, Lloyd’s undertook a strategic review since suffering a $2.6bn loss in 2017, leading to the cutting of unprofitable lines. Risk aggregation concerns also exist with such a high concentration of wineries in an area prone to wildfires. The new policy will be available from 1 January 2018.
Lloyd’s of London is taking a hard stance against insuring the stock of Californian wineries, leaving domestic insurers under pressure to provide cover. California is the world’s fourth-largest wine producer by volume and wineries have traditionally relied on Lloyd’s insurance, specifically the cargo market, for inventory stock throughput policies. However, Lloyd’s undertook a strategic review since suffering a $2.6bn loss in 2017, leading to the cutting of unprofitable lines. Risk aggregation concerns also exist with such a high concentration of wineries in an area prone to wildfires. As a result, some wineries are going without insurance.