Insurance premium is being lost as buyers look for independence from the marker, warned Aon UK deputy chairman Max Taylor.
In a speech at the RIMS conference in San Diego Taylor said the over-correction of insurance premium rates in 2001 significantly undermined the confidence of insurance buyers.
He said many buyers had since worked to manage their risks independently from the market. “This change of attitude represents significant premium lost from the insurance market,” he said.
Taylor then addressed the resurgence of the London market and the work to instil greater underwriting discipline. “The industry needs greater discipline to help tame the cycle and I believe that much of the work, the Lloyd’s Franchise Board being an example, already in progress in the London market is taking things in the right direction.
“There is, however, still a great deal of work to be done and an important balance to be struck between offering the innovative underwriting that London and Lloyd’s has traditionally offered and in its ability to offer a sustainable product.
Taylor also said emerging insurance markets such as in India, Eastern Europe and China represented a huge long-term opportunity for the insurance industry, and would have particular importance for the London market.
