London market has ‘superpower’ to meet client needs as risks grow – Neal

Lloyd’s of London chief executive John Neal has said the London market has the “superpower” to meet the needs of clients in today’s complex risk environment.

Speaking at the S&P Global European Insurance Conference in London yesterday (27 November 2024), Neal said that wars, Covid-19 and the climate were all contributing to a riskier world.

However, he felt the market had the ability to create new products from a customer viewpoint to mitigate emerging and future risks.

Neal said: “We have a riskier world with the impact of Covid, war on land and the climate.

“The ability we have as an industry is to give people, businesses and governments the confidence to be able to make decisions.

“Successful innovation requires collaboration. It is at the heart of what we do.

“What we have in London is an unusual concentration of talent. We can only stay relevant if we are looking at the challenges our customers face in the future and create the products that will meet them.

“When the world is at its most unpredictable and fast moving, it is the time for the insurance industry to stand up and highlight why we exist.

“We have in London the superpower to deal with the most complex of challenges.”

Underwriting discipline 

Neal also said that underwriting discipline would remain the core for any future innovation.

And he felt firms that with a combined underwriting ratio of around 90% and a 5% contribution from investment would be delivering a 15% return on capital despite a riskier environment.

“I think this is the least that we should be looking for,” he said.

“We have to remember that investors have so many choices.”