The International Under-writing Association's (IUA) view that the market needs to recoup its losses through rate rises (see right) should be applauded.
Since 11 September, the market has been in a ...
The International Under-writing Association's (IUA) view that the market needs to recoup its losses through rate rises (see right) should be applauded.
Since 11 September, the market has been in a state of disbelief. Any issues related to the World Trade Centre tragedy have been dealt with sensitively, but few people have talked openly about the doors it has opened.
We all wish we could turn back the clock and somehow prevent the terrible atrocities that took place in New York but, instead, the insurance industry must look ahead and embrace the changes it has caused.
When the Association of Lloyd's Members (ALM) published its October newsletter advising Names to invest in a market "where very large profits are possible", it came under harsh criticism from national newspapers.
Its comments were branded as "sickening" and it was accused of "profiting from the misery of others".
Although the opinions expressed may appear tactless, the message behind it is correct.
Now is a good time to invest in the market - prices are approaching the correct level and underwriters have tightened up on policies.
Making a profit shouldn't be seen as a taboo subject or something to be ashamed of - insurers are, after all, picking up the losses and many will go under as a result.
As IUA chairman Stephen Cane says, companies cannot push their balance sheets aside and must now make money - in order to survive.
