Although persistent anxiety continues to surround the present and future state of the eurozone, the single currency is unlikely to collapse altogether, according to Stuart Simpson, treasurer of Lloyd’s.
Simpson said that, unless Germany left the currency, it would continue to exist but might lose some members, such as Greece, Italy or Spain.
Sam Dobbyn, associate director of analytics at AM Best, described a euro collapse as extremely unlikely and Mike Holley, CEO at Lloyd’s coverholder Equinox Global, put the odds of such a thing at just one in 10.
Despite the low chance of the eurozone collapsing, Simpson has stated that Lloyd’s has created plans for such a contingency, and that Lloyd’s has very low exposure to the troubled PIIGS (Portugal, Ireland, Italy, Greece and Spain).
Category: Insurance News