Opinion: Costing volatility

The rationale of the Lloyd's market is to take volatile risks
that aren't suitable for vanilla insurers.
And yet its exposure to catastrophe risk was highlighted by
Fitch Ratings as a major factor in its decision to put a negative
outlook on its AA- rating for the market.
Of course, the ratings agency has to look at Lloyd's
exposure in comparison to its peers and consider the way it changes
over time, but to pick out one line of business...