London market needs to reinforce its standing, warns ACE boss

London’s insurance industry needs to avoid complacency and reinforce its position as the top global insurance centre, ACE European Group chairman Andrew Kendrick has warned.

Kendrick, who was addressing more than 300 senior managers in the industry at the Xchanging London Market Conference, said the market needed to innovate and work together while recognising the shift towards emerging markets.

Kendrick highlighted the change in dynamic of the world economy, stressing that the London insurance market needed to look further afield for opportunities as the source of insurance activity shifted and as emerging financial centres in Asia and the Middle East continued to rise up the rankings.

“One thing I haven’t seen a great deal of over the past 34 years is long-term vision … and that’s why I’m excited by Lloyd’s Vision 2025,” he said. “It’s really encouraging to see the future direction of the market set out over a 10 to 15-year period … We should adopt this as the blueprint for London.”

Noting that four of the world’s top 10 financial centres were now in the Asia Pacific region, according to the Global Financial Centres Index, Kendrick warned insurers not to rest on their laurels and expect new business to come to them. He said they needed to look towards emerging markets, offering advice and best practice to create mutually beneficial partnerships that will serve London well in the future.

“London is in a very privileged position to influence and shape the future. No other insurance centre has the same ability to help emerging insurance markets develop the right frameworks, standards and skills to support their future development.

“Innovation is one of London’s great historical strengths,” he said. “If the collective expertise exists anywhere to find solutions to our emerging risk challenges, then it is here.”

Kendrick said London could position itself as the “recognised global centre for cyber insurance” thanks to its collective expertise in underwriting and broking as well as the legal sector.

“The insurance industry has much value to add value beyond underwriting. London has re-emerged as the undisputed centre of global insurance broking,” he said.

“Brokers have always been central to London’s success … they can, without any question, help to keep our industry – and London – relevant.”