The way businesses manage the risks they face is becoming an increasingly important factor in the price they pay for their insurance, according to Lloyd's Chairman Sax Riley.
Speaking at an insurance conference in Italy, Riley said that the return to hard-market conditions meant insurers were able to offer greater discounts than at any time in the past decade.
Riley added: "We are now seeing a return to the concept of payback for improvements to risk management practice. In the soft cycle of the mid-to-late '90s' it was virtually impossible to discount premium rates that were already cut to the bone.
"Now, as high rates are encouraging insurers and their clients to work together closely, insurers have more opportunity to encourage and reward best practice risk management techniques.
"Insurance intermediaries can now really sell risk management advice more easily to their clients."
