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. “There’s a tremendous pressure on US markets to respond, but many are saying they cannot offer the coverage until they’ve renewed their reinsurance treaties and renegotiated them so that they can respond to higher values. 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. The new policy will be available from 1 January 2018.