Transitions a global perspective. Dominic Burke, CEO JLT Group plc

Transcription

1 Transitions a global perspective Dominic Burke, CEO JLT Group plc

2 Agenda Introduction to JLT Transitions five key areas of change Potential implications Q&A 1

3 JLT is one of the world s largest providers of insurance and employee benefits related advice and brokerage premiums placed A$15bn people 9,000 market capitalisation A$3.2bn over115offices in 37 countries 2

4 Australia is a key market for JLT Australasia as a % of JLT Group revenues Australasia 15% 85% Rest of JLT Group 15% of total Group revenues 900 people across all 8 states and territories 300 people dedicated to Public sector Local autonomy and accountability Note: Based on year ended 31 December

5 Agenda Introduction to JLT Transitions five key areas of change Potential implications Q&A 4

6 Five key areas of global transition 1 The changing face of the global economy 2 The future of Lloyds of London 3 The emergence of new third party capital 4 The technology and Big Data Revolution 5 The impact of Climate Change 5

7 % GDP growth 1 The changing face of the global economy Emerging markets 20 years of unprecedented growth Global Economy Growth Trends Developed Economies Emegerging Economies Emerging Markets consistently outperformed Developed World Now 50% of global GDP, versus 31% in 1990 But growth is faltering 6

8 % GDP growth 1 The changing face of the global economy Prospects for Developed World improving America s forecast GDP growth UK economy growing at 1.4% Eurozone out of recession US forecast to grow strongly Improved confidence Reindustrialisation of US economy Current and forecast GDP stats obtained from the IMF 7

9 1 The changing face of the global economy Demographic trends drive long term EM growth 2.3bn more people by % in Asia Growth in middle class from 1.9bn to 4.9bn by 2030 Increase in consumer spending from $12trn to $30trn $57trn in new infrastructure 8

10 2 The future of Lloyds of London Lloyds Vision 2025 Increased focus on areas of Specialty Increased investment in people Increased investment in efficiency and innovation 9

11 2 The future of Lloyds of London Lloyds Vision 2025 Increased focus on Specialty Forecast global P&C premiums by source Developing World 30% Increased investment in people Developed World 70% Increased investment in efficiency and innovation Source: Lloyd s, Increased focus on Emerging Markets 9

12 2 The future of Lloyds of London Potential issues for Lloyds to manage International insurance hubs are gaining in size and sophistication But Lloyds remains THE market for more specialist and complex risks Sidecars are a potential threat but Lloyds is fighting back 10

13 Size of Cat bond Market ($bn) 3 The emergence of new third party capital New sources of capital are here to stay Size Of Cat Bond Market $35bn in last 12 months % CAGR F $100bn forecast to enter over next 5 years Investor interest due to : Low interest rates Low correlation Low barriers to entry 11

14 4 The technology and Big Data revolution Data and technology driving fundamental changes Data is now everywhere analysis is key Consumer behaviours are changing Social media creates new risks 12

15 5 The impact of Climate Change Natural Catastrophes are widespread 13

16 5 The impact of Climate Change...and happening with increased frequency and cost Natural Catastrophe trends events in 2012 double the number in costliest year - $435bn Only 40% of losses insured in

17 Agenda Introduction to JLT Transitions five key areas of change Potential implications Q&A 15

18 What are the potential implications? 1 The changing face of the global economy More holistic approach required to understand and manage supply chain risks 2 The future of Lloyds of London Lloyds remains key, given your unique risk profile and their deep technical skills and relationships 3 The emergence of new Third Party capital Maintain a watching brief limited impact to date 4 The technology and Big Data revolution Good data will drive differentiation and pricing Cyber risks are increasing dramatically 5 The impact of Climate Change Risk adaptation will drive differentiation and more positive discussions with government and markets 16

19 Q&A