Richard Ward, chief executive at Lloyd's, has confirmed the insurance market has prepared for the collapse of the Euro and put a multi-currency settlement option in place and ready to go.
In an interview with The Sunday Telegraph Mr Ward said he was concerned about the consequences of Greece leaving the Euro and what the impact would be on the Eurozone economy.
Mr Ward explained while Greece exiting the Euro would not definitely lead to the collapse of the Eurozone, Lloyd's was still preparing for that to happen.
"If we needed to switch to multi-currency settlement we can do now," he told the newspaper. "We've got multi-currency functionality and we would switch to multi-currency settlement if the Greeks abandoned the euro and started using the drachma again.
Mr Ward continued: "It's more about what would happen on asset writedowns and what would happen to existing policies. They would not necessarily have to be moved to a new currency but it would be about how you would agree to nominate existing policies if the euro collapsed."
According to Mr Ward the market has £58.9bn under management and has been looking to get an understanding of what a Greek sovereign default would have.
"There are some concerns that we could see a recession again in Europe. That would have an impact on our assets and we would have to take some writedowns," he confirmed.
