Market reforms don't go far enough, says JTW director

The London insurance market risks losing business unless reforms are implemented quickly, according to JTW Reinsurance Consultants' director Stephen Hartigan.

"London's global status has taken a pasting for too long," said Hartigan. "This market's lack of efficient, speedy and robust claims handling and settlement processes has left it wide open to international criticism and has damaged its reputation."

"If action is not taken quickly then business will increasingly move elsewhere -- typically to Bermuda, the US and Europe. That will be a blow to the market, to the UK insurance industry and the international standing of the City of London"

Hartigan said while current reforms were a step in the right direction, they did not go far enough. "We need to see radical changes in payment terms for reinsurance intermediaries, training for underwriters and the way that disputes are resolved."

He said any reforms should apply to run-off as well as live business.