Lloyd’s chief executive Richard Ward has called on global reinsurance markets to continue to engage with regulators and be more visible in the reform debate.
As the reinsurance market met in Monaco Dr Ward addressed a breakfast meeting hosted by accountants PricewaterhouseCoopers, where he demanded more from the market fearing that the message was still to get through to regulators over the impact of a range of planned reforms.
He called for his counterparts to take an active role in ensuring the industry is not “inappropriately or unfairly” hit by new regulations. This means engaging with regulators now as they craft the rules that will govern the financial services industry in the future, he told the meeting.
Dr Ward added: “We are at a critical point. Regulators are in the process of implementing significant changes and the industry needs to continue to engage with them constructively. That is the only way we can seek to ensure that the outcomes are appropriate for our business.
“The insurance industry has navigated the global crisis well. We are not the banking sector, and we need to continue to show leadership in reminding governments of the positive role we play. These are points that the industry has been making throughout the post-crisis period but we need to keep making them.”
In response to his comments Gavin Phillips, London insurance market leader,PricewaterhouseCoopers, said: “The need to engage with the regulatory debate to ensure the scope of regulation is appropriate is undeniable. But regulation is only part of the equation, the London market also needs to be mindful of other threats to its leading position, such as talent attrition, geographic shifts in economic power and competition from lower tax jurisdictions.
“The London market needs to work collectively to stress its distinctiveness and its contribution to the UK and global economies if it is to remain the most attractive insurance centre.”