Tony Markel has issued a wake-up call to Lloyd's over underwriting discipline, aviation capacity and international expansion.
The president and chief operating officer of Markel Corporation called on Lloyd's Franchise Performance Directorate (FPD) to ensure syndicates do not move away from core competencies.
While complimenting Rolf Tolle and his FPD team on their efforts in reducing reinsurance levels and discouraging multi-year policies, Markel emphasised that “a lot more needs to be done” to “monitor disciplines as the market softens”.
He also expressed concern about acceptance of new aviation capacity as rates continue to fall.
Speaking to a packed Lloyd's audience including chief executive Richard Ward, Markel outlined seven issues key to Lloyd's future:
1. Taxation inequality, the unlevel playing field and the threat from Bermuda.
2. The cost of doing business at Lloyd's.
3. Streamlining and modernising processes — Markel supported Ward's focus on “bite-sized solutions for bite-sized problems”.
4. The need for education and training of actuaries and underwriters as the global market grows ever more complex.
5. Ensuring solid underwriting results in terms of accuracy of data, pricing stability and the quality of reinsurance bought by syndicates.
6. Lloyd's branding and reputation should be continually supported and strengthened.
7. Lloyd's needs to go to local markets as “We can't wait for Mohammed to come to the mountain — the mountain must go to Mohammed”.
Markel also called on brokers to establish local presences in growing markets such as India, China and the Far East. He said: “Brokers can't sit here any longer waiting for new business without being on site”.
