Only the fittest will survive in the London Market, according to a new report by PricewaterhouseCoopers (PWC).
PWC released the research, for which it surveyed a range of London Market insurers attending Rendez-Vous.
The study showed there is growing pressure from capital providers on London Market insurers to price risks more accurately, control exposures more effectively and generate higher and more consistent returns.
This pressure has been exacerbated by 11 September, other losses, and the growing threat from Bermuda.
PWC partner Paul Delbridge said: "Improving operational performance will be key to survival and success, but the cushion of the current strong rate increases may have abated the sense of urgency and purpose needed to transform the modus operandi.
"The acid test will come with the cycle downturn. The winners are likely to be those who act now and make the move towards operational excellence and sustain it," he added.