Lloyd's and the London market are enjoying a surge in confidence, according to the author of a new report on the London market.
Nick Devonald, consultant at insurance information provider Axco, said in his latest report that the market was bullish.
Devonald said: "Lloyd's in particular is very positive about the future and they can see rates increasing in many areas, although there is a view that in some classes they are at a peak. The view is that the market will remain hard for some time."
Devonald added there are players in the market that are beginning to look to next year and possible premium reductions.
He said: "Talking to participants in the market some have commented that there have been no major catastrophes in the past 18 months and if the rest of the year is catastrophe-free there may be some move to soften rates."
He also warned over the threat of Bermudan operations to the London Market. He said: "The Lloyd's and London market are facing up to the threat of Bermuda to the point that Bermudan insurers and reinsurers are setting up London operations.
