Why Lloyd's Is Looking For Its Own Safety Net

As Luciano Pavarotti sang out to 100,000 rain-soaked concertgoers in London's Hyde Park on July 30, underwriters at Lloyd's of London breathed a sigh of relief: They held the brunt of the risk had Pavarotti canceled. A month later, they weren't so lucky. On Aug. 28, apparently due to voice troubles, the great Italian tenor pulled out of a 30th anniversary concert in Copenhagen just as the orchestra was warming up, leaving Lloyd's and other insurers with losses running into the millions.

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